Publish Date:
Kotak Mahindra Mutual Fund introduces – Kotak Multi Asset Allocation Fund
It is an open-ended scheme investing in Equity, Debt & Money Market Instruments, Commodity ETFs and Exchange Traded Commodity Derivatives.
Accordingly, the investment objective of the scheme is to generate long term capital appreciation by investing in Equity & Equity related Securities, Debt & Money Market Instruments, Commodity ETFs and Exchange Traded Commodity Derivatives. However, there is no assurance that the objective of the scheme will be achieved.
Under normal circumstances, Kotak Multi Asset Allocation Fund will hold an allocation of 65% to 80% of its assets in Equity and equity related instruments, 10% to 25% in Debt and Money Market Securities, 10% to 25% in Commodity ETFs, Exchange Traded Commodity Derivatives (ETCDs)$ & any other mode of investment in commodities as permitted by SEBI from time to time, 0% to 15% in Overseas Mutual Funds schemes/ ETFs/Foreign Securities and 0% to 10% in Units of REITs & InvITs.
[Read: How Multi-Asset Allocation Funds May Help You Cushion the Downside Risk]
As per the Scheme Information Document, Kotak Multi Asset Allocation Fund will invest in Equity and Equity related securities, Debt & Money Market Instruments, Commodity ETFs and Exchange Traded Commodity Derivatives (ETCDs) as permitted by SEBI from time to time.
The exact allocation in various asset classes and schemes would be decided based on the fund manager’s outlook on prevalent market conditions and changing business environment. The Scheme will invest in a diversified portfolio of debt and money market instruments to generate regular income.
The fund manager will allocate the assets of the scheme taking into consideration the prevailing interest rate scenario & the liquidity of the different instruments. The portfolio duration and credit exposures will be decided based on a thorough research of the general macroeconomic 50 condition, political and fiscal environment, systemic liquidity, inflationary expectations, corporate performance and other economic considerations.
Kotak Multi Asset Allocation Fund performance will be benchmarked against NIFTY 500 TRI (65%) + NIFTY Short Duration Debt Index (25%) + Domestic Price of Gold (5%) + Domestic Price of Silver (5%)
The scheme will be managed by Mr Devender Singhal for equity investment, Mr. Abhishek Bisen for debt investment, Mr. Hiten Shah for arbitrage investment, Mr. Jeetu Valechha Sonar for commodities investments and Mr. Arjun Khanna for investments in foreign securities.
The NFO opens for subscription on August 31, 2023 and closes on September 14, 2023. The schemes will reopen for continuous sale and repurchase on October 03, 2023.
The fund's face value is Rs 10/- per unit. The minimum subscription amount is Rs 5,000/- and in multiples of Re. 1/- thereof.
The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal (IDCW) options.