Publish Date:
Kotak Mahindra Mutual Fund has Introduced a new scheme – Kotak NIFTY SDL Plus AAA PSU Bond Jul 2028 60:40 Index Fund
It is an open-ended Target Maturity Index Fund investing in constituents of Nifty SDL Plus AAA PSU Bond Jul 2028 60:40 Index. A relatively high interest rate risk and relatively low credit risk.
Accordingly, the investment objective of the scheme is to track the Nifty SDL Plus AAA PSU Bond Jul 2028 60:40 Index by investing in SDLs and PSU Bonds, maturing on or before Jul 2028, subject to tracking difference.
However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved.
Under normal circumstances, Kotak NIFTY SDL Plus AAA PSU Bond Jul 2028 60:40 Index Fund will hold an allocation of 95% to 100% of its assets in replication of securities covered by Nifty SDL Plus AAA PSU Bond Jul 2028 60:40 Index and 0% to 5% in Cash & Debt/Money Market Instruments.
As per the Scheme Information Document, Kotak NIFTY SDL Plus AAA PSU Bond Jul 2028 60:40 Index Fund will follow Buy and Hold investment strategy in which debt instruments by PSU & state government securities will be held till maturity unless sold for meeting redemptions/rebalancing. The Scheme shall endeavour to replicate the index. In case the Scheme is not able to replicate the index the Fund Manager may invest subject to deviations as permitted under SEBI circular dated May 23, 2022 as amended from time to time.
During normal circumstances, the Scheme’s exposure to money market instruments will be in line with the asset allocation table. However, in case of maturity of instruments in the Scheme portfolio, the reinvestment will be in line with the index methodology. The Scheme may also invest a portion of its portfolio in Debt & Money Market securities maturing on or before the maturity date of the Scheme, Repo in government securities and TREPS to manage liquidity requirement.
Kotak NIFTY SDL Plus AAA PSU Bond Jul 2028 60:40 Index Fund’s performance will be benchmarked against Nifty SDL Plus AAA PSU Bond Jul 2028 60:40 Index.
The scheme will be managed by Mr Abhishek Bisen.
The NFO opens for subscription on September 29, 2022 and closes on October 10, 2022. The scheme will reopen for continuous sale and repurchase on October 20, 2022.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000/- 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 Nifty SDL Plus AAA PSU Bond Jul 2028 60:40 Index Fund: Should You Invest?]