Kotak Mutual Fund has initiated the NFO of its 36 month close-ended multi cap scheme – the Kotak India Growth Fund Series 7. The NFO period of the scheme opened on 13th August 2018 and will close on 27th August 2018. The scheme will only open for investments during the NFO period. It will have a tenure of 36 months.
Being an equity scheme, the Kotak India Growth Fund Series 7 will invest 65 to 100% of its assets into equity and equity derivatives for tax purposes. These equity investments are expected to be sector agnostic in nature i.e. the scheme would invest in a mix of large, mid and small cap equities. Additionally, the scheme’s remaining assets would be invested in debt/money market securities (max. 35%) and up to 10% in units of InvITs (Infrastructure Investments Trusts)/ReITs (Real estate Investment Trusts).
As part of its unique hedging strategy, the scheme would attempt to limit the downside of its equity investments by purchasing At The Money (ATM) NIFTY 50 Put options with three year maturity featuring strike price at existing levels. The value of these options increases when NIFTY 50 goes down and helps contain potential losses incurred from the scheme’s other equity investments.
The scheme will be benchmarked against the Nifty 50 Index which is a diversified large cap index and has shown 1 year and 5 year returns of 12.70% and 14.61% respectively. This Index features a P/E of 28.22 with four key sectors – Financial Services (37.09%), Energy (15.01%), IT (13.27%) and consumer goods (10.74%) accounting for over 75% of the index weightage.
Kotak India Growth Fund Series 7 will be managed by Harsha Upadhyaya who also manages the Kotak Standard Multicap Fund, Kotak India Growth Fund Series 4, Kotak India Growth Fund Series 5 and the Kotak Equity Opportunities Fund. Among these the Kotak Standard Multicap Fund earlier known as the Kotak Select Focus Fund is currently the most popular fund from Kotak MF AMC and features AUM of Rs. 21,271 crore.
Other Funds by Kotak Asset Management
| Scheme Name | 3-Year Returns (%) | AUM (Rs. Cr.) |
| Kotak Gold Fund Direct-Growth | 12.35 | 163.78 |
| Kotak Dynamic Bond Fund Direct-Growth | 9.11 | 873.73 |
| Kotak Gilt Investment PF & Trust Direct-Growth | 8.98 | 521.99 |
| Kotak Gilt Investment Direct-Growth | 8.98 | 521.99 |
| Kotak Banking and PSU Debt Fund Direct-Growth | 8.37 | 1135.66 |
| Kotak Low Duration Fund Direct-Growth | 8.25 | 6000.55 |
| Kotak Corporate Bond Fund Direct-Growth | 8.15 | 1281.77 |
| Kotak Bond Short Term Fund Direct-Growth | 8.09 | 9203.62 |
| Kotak Bond Fund Direct-Growth | 7.87 | 2255.87 |
| Kotak Credit Risk Fund Direct-Growth | 7.78 | 5244.2 |
| Kotak Savings Fund Direct-Growth | 7.58 | 7166.12 |
| Kotak Money Market Fund Direct-Growth | 7.45 | 13072.18 |
| Kotak Medium Term Fund Direct-Growth | 7.08 | 4836.36 |
| Kotak Equity Arbitrage Fund Direct-Growth | 6.78 | 11454.63 |
| Kotak Liquid Direct – Growth | 6.77 | 14121.92 |
| Kotak Debt Hybrid Fund Direct -Growth | 5.88 | 372.3 |
| Kotak Asset Allocator Fund Direct-Growth | 5.4 | 36.24 |
| Kotak Equity Savings Fund Direct-Growth | 5.17 | 1995.73 |
| Kotak Global Emerging Market Fund Direct-Growth | 4.54 | 31.47 |
| Kotak India EQ Contra Fund Direct-Growth | 4.11 | 334.01 |
| Kotak Equity Opportunities Fund Direct-Growth | 2.58 | 2523.44 |
| Kotak Standard Multicap Fund Direct-Growth | 2.19 | 19227.84 |
| Kotak Tax Saver Fund Direct-Growth | 2.1 | 755.21 |
| Kotak Emerging Equity Fund Direct-Growth | 1.83 | 3285.96 |
| Kotak Bluechip Fund Direct-Growth | 1.39 | 1350.02 |
| Kotak Equity Hybrid Fund Direct-Growth | 1.36 | 2199.54 |