Publish Date:
Kotak Mahindra Mutual Fund has Introduced a new scheme – Kotak All Weather Debt Fund of Fund
It is an open-ended fund of fund scheme predominantly investing in debt oriented mutual fund schemes of Kotak Mahindra Mutual Fund.
Accordingly, the investment objective is to generate long-term capital appreciation from a portfolio created by investing in debt oriented mutual fund schemes of Kotak Mahindra Mutual Fund. However, there is no assurance that the investment objective of the scheme will be realized.
Under normal circumstances, Kotak All Weather Debt Fund of Fund will hold an allocation of 95% to 100% of its assets in Units of Debt oriented mutual fund schemes of Kotak Mahindra Mutual Fund, 0% to 5% Money Market instruments, including Triparty repo on Government securities or treasury bills, cash & cash equivalents and 0% to 5% in Units issued by REITs and InvITs.
As per the Scheme Information Document, Kotak All Weather Debt Fund of Fund’s investment strategy is aimed at optimizing risk adjusted return through investments in various debt oriented schemes of Kotak Mahindra Mutual Fund. Since the underlying schemes of KMMF are predominantly open ended, it could facilitate active management of the portfolio.
The allocation would be decided based on various factors such as Interest rate view, Yield and credit Spreads, RBI monetary policy, Systematic liquidity, Yield curve, inflation dynamics, government policies, fiscal deficit etc. The Fund Manager would aim to create a portfolio based on overall interest rate and economic outlook.
Kotak All Weather Debt Fund of Fund’s performance will be benchmarked against NIFTY Composite Debt Index
The scheme will be managed by Mr Abhishek Bisen.
The NFO opens for subscription on October 28, 2022 and closes on November 10, 2022. The schemes will reopen for continuous sale and repurchase on November 24, 2022.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 1,000/- and in multiples of any amount thereafter.
The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.
[Read: Kotak All Weather Debt Fund of Fund: Is it Worthwhile to Invest?]