Publish Date:
Kotak Mahindra Mutual Fund has launched a close ended debt scheme – Kotak FMP Series 291-1826 days.
The investment objective of the scheme is to generate returns through investments in debt and money market instruments with a view to reduce the interest rate risk. The scheme will invest in debt and money market securities, maturing on or before maturity of the scheme. There is no assurance that the investment objective of the Scheme will be achieved.
It is a Fixed Maturity Plan that will mature in 1826 days from the date of allotment.
For the purpose of achieving the investment objective, the scheme will invest in a portfolio of Debt and Money Market securities, maturing on or before maturity of the scheme.
Under normal circumstances the scheme will invest 80% to 100% of its assets in Debt Instruments including Government Securities; whereas Upto 20% of its assets can be invested in Money Market instruments.
As mentioned in the Scheme Information Document, the AMC has an internal policy for selection of assets of the portfolio. The portfolio is constructed taking into account ratings from different rating agencies, rating migration, credit premium over the price of a sovereign security, general economic conditions and such other criteria. Such an internal policy from time to time lays down maximum/minimum exposure for different ratings, liquidity norms, and so on. Through such norms, the scheme is expected to maintain a high quality portfolio and manage credit risk well.
Investments may be made in instruments, which, in the opinion of the Fund Manager, are of an acceptable credit risk and chance of default is minimum. The Fund Manager will generally be guided by, but not restrained by, the ratings announced by various rating agencies on the assets in the portfolio.
The NFO opens for subscription on March 22, 2021, and closes on March 24, 2021.
The scheme’s performance will be benchmarked against CRISIL Composite Bond Fund Index.
The fund will be managed by Mr. Deepak Agrawal.
The New Fund Offer price is Rs 10 per unit and the minimum application amount for initial purchase is Rs 5,000 and in multiples of Rs 10 thereafter during the NFO period.
The scheme offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Payout Facility).
On allotment the units will be listed on BSE Limited. Investors may sell their units in the stock exchange(s) on which these units are listed on all the trading days of the stock exchange. The units cannot be redeemed with Kotak Mahindra Mutual Fund until the maturity of the scheme.