Publish Date:
Kotak Mutual Fund has launched an open-ended equity scheme – Kotak Multicap Fund.
The scheme will predominantly invest across large cap, mid cap & small cap stocks.
The investment objective of Kotak Multicap Fund is to generate long-term capital appreciation from a portfolio of equity and equity related securities across market capitalization. However, there is no assurance that the objective of the scheme will be realized.
Under normal circumstances, 75% to 100% of the funds portfolio will be invested in Equity & Equity related instruments across large, mid and small cap companies. The scheme will invest a minimum of 25% of total assets each in Large, Mid and Small Cap stocks. Whereas upto 25% of its assets can be invested in Debt & Money Market Instruments. The scheme may seek to invest upto 10% of its net assets in units issued by REITs & InvITs.
The investment strategy of Kotak Multicap Fund as mentioned in the Scheme Information Document (SID) is as follows:
Kotak Multicap Fund will invest in equity and equity linked instruments across market capitalization viz. Large cap, mid cap and small cap companies.
The minimum investment in equity & equity related instruments will be 75% of total assets in the following manner:
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- Minimum investment in equity & equity related instruments of large cap companies - 25% of total assets
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- Minimum investment in equity & equity related instruments of mid cap companies - 25% of total assets
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- Minimum investment in equity & equity related instruments of small cap companies - 25% of total assets
Currently the large cap companies are the 1st-100th, mid cap companies are 101st - 250th and small cap companies are 251st company onwards in terms of full market capitalisation.
The list of stocks would be as per the list published by AMFI and updated on half yearly basis. The selection of sectors would be driven primarily by the growth prospects and valuations of the businesses over a medium to long term as per the discretion of the fund manager.
The portfolio construction will be based on thematic approach to bottom-up stock picking using the Business, Management and valuation (BMV) model.
The fund managers will evaluate the business environment that a company operates in, the capability of the management to execute and scale up the business and valuation of the company based on fundamentals like discounted cash flows and PE ratios, etc.
Kotak Multicap Fund’s performance will be benchmarked against Nifty 500 Multicap 50:25:25 TRI (Total Return Index).
The fund will be managed by Mr Harsha Upadhyaya (Equity), Mr Devender Singhal (Equity), Mr Abhishek Bisen (Debt) and Mr Arjun Khanna (Overseas Investments).
The NFO opens for subscription on September 08, 2021, and closes on September 22, 2021. The scheme will reopen for continuous sale and repurchase on or before October 06, 2021.
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 Re 1 thereafter.
The fund offers Regular Plan and Direct Plan having Growth and Income Distribution cum capital withdrawal (IDCW) (Payout and Reinvestment).