Publish Date:
Kotak Mutual Fund introduces – Kotak Quant Fund
It is an open-ended equity scheme following Quant based investing theme.
Accordingly, the investment objective of the scheme shall seek to generate long term capital appreciation by investing predominantly in equity and equity related securities selected based on quant model theme. However, there is no assurance that the objective of the scheme will be achieved.
Under normal circumstances, Kotak Quant Fund will hold an allocation of 80% to 100% of its assets in Equity and equity related instruments based on quant model theme, 0% to 20% in Equity and Equity Related Securities of companies other than quant model theme, 0% to 20% in Overseas Mutual Funds schemes / ETFs /Foreign Securities, 0% to 20% in Debt and Money Market Securities and 0% to 10% in Units issued by REITs & InvITs.
[Read: All You Need to Know About Quant Funds]
As per the Scheme Information Document, Kotak Quant Fund aims to invest in equity and equity related instruments selected based on an in-house proprietary quantitative model. The investment process will be based on a factor based approach with the aim of generating superior risk adjusted returns compared to the benchmark. The factors employed are the ones that have a strong academic basis and / or are considered central by fundamental investors in their process as can be seen from the list below.
The Fund Manager may change the above quantitative and qualitative parameters by addition or deletion of the parameters to optimise the model. The weights are primarily optimised around prudent diversification, with inputs from volatility observed, consideration of portfolio churn etc. Although the scheme will predominantly invest in stocks as per the quant theme, it retains the flexibility to take some exposure beyond the theme based on the Fund manager’s discretion.
Kotak Quant Fund’s performance will be benchmarked against NIFTY 200 TRI Index
The scheme will be managed by Mr Harish Krishnan (for equity), Mr Abhishek Bisen (for debt), and Mr Arjun Khanna (for overseas investments).
The NFO opens for subscription on July 12, 2023 and closes on July 26, 2023. The schemes will reopen for continuous sale and repurchase on August 09, 2023.
The fund's face value is Rs 10/- per unit. The minimum subscription amount is Rs 1,000/- 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 option (IDCW) option.