Kotak Mutual Fund opened subscriptions for the NFO (New Fund Offer) for Kotak India Growth Fund Series V on 25th April 2018.
The Series IV of the same was recently launched on February 12, 2018.
|NFO Period||April 25 2018 to May 09, 2018|
|Fund Managers||Mr. Harsha Upadhyaya & Mr. Harish Krishnan|
|Tenure||1099 days (Approx. 3 years)|
It is a multi-cap fund (close-ended) with a lock-in of 1099 days. It will invest across large, mid and small-cap stocks.
If you want to invest in this Kotak NFO, you have to follow the steps below.
The scheme offers two options: Dividend and Growth Payout.
The portfolio shall remain the same of both the options.
However, the NAVs (Net Asset Value) would be different and declared separately.
The application shall be accepted as growth option on account of failure to disclose the choice of options in the application form.
Kotak India Growth Fund Series V is a close ended equity scheme with diversified investment across large-cap, midcap and small-cap stocks in the market.
Generating capital appreciation through investment in the diversified portfolio of equity and equity related instruments across sectors and market capitalization is the investment objective of the scheme.
However, there cannot be any guarantee or assurance of the achievement of the investment objective of the scheme due to market risks.
The scheme by investing in a well-diversified of equity and related stocks across large, mid and small cap aims to provide long-term growth to its investors.
The fund manager, due to the close-ended nature of the scheme will have the flexibility for executing the investment strategy very effectively over the tenure of the scheme.
BMV (Business, Management and Valuation) model will be used for portfolio construction based on a thematic approach.
After careful evaluation of the business environment of the companies and capability of the company management for executing and scale the business the decision for investing will be taken by the fund managers.
Also comparative and relative valuations like PE ratio, EV/EBITDA or DCF (Discounted Cash Flows) would be done by the managers.
These aspects would help the fund manager to include the companies or sectors in the portfolio which have a good potential for long-term growth and profitability.
The fund is free to invest in any company or sector which the fund manager may evaluate to be offering good growth and return.
For meeting the liquidity requirements from time to time, the fund may also invest in money market instruments and debts or liquid schemes of Kotak Mahindra Mutual Fund.
The fund will, however, invest in debt instruments or fixed income securities which have a maturity date on or before the maturity of the scheme.
The fund would invest a minimum of 80% in Equity up to a maximum of 100% and a minimum of 0% to maximum 20% in Debt.
Investing up to 20% in index options, the scheme may hedge the portfolio against uncertain or adverse market conditions.
Also, different derivative and hedging products would be a part from time to time subject to the availability and rules and regulations of the SEBI.
These strategies would be undertaken to for enhancing the unitholder interest limiting the downside and protecting the value of the portfolio.
The benchmark of the scheme: NIFTY 200.
It is an index which includes all companies forming part of NIFTY 100 and NIFTY Midcap 100 index.
It represents about 85% of the free float market capitalization of the stocks. The top 200 stocks in NSE by free-float market capitalization is included and no derivatives contracts are present for trading in this index.
The index includes companies across different sectors like Infrastructure, Agriculture, Financial Services, Healthcare, and others.
Want to invest in a multi-cap fund that is open-ended? You can explore these open-ended direct mutli-cap funds.
The fund managers for the scheme would be Mr. Harsha Upadhyaya and Mr. Harish Krishnan.
Mr. Harsha Upadhyaya is a B.E (Mechanical) from NIT Suratkal and PGDM from IIM Lucknow with CFA from the CFA Institute, USA.
He has worked with DSP BlackRock Investment Managers Limited and UTI Asset Management Company (AMC) prior to joining Kotak Mutual Fund.
Some of the mutual funds under his management are:
Kotak India Growth Fund Series V – since April, 2018
Kotak India Growth Fund Series IV – since January 2018
Kotak Taxsaver – since August 2015
Kotak Opportunities Fund– since August 2012
Kotak Select Focus Fund – since August 2012
Mr. Harish Krishnan is a graduate from Government Engineering College Trichur and MBA from IIM, Kozhikode.
He has worked with Kotak Mahindra (UK) Ltd prior to joining Kotak Asset Management Company. Some of the mutual funds under his management are:
Kotak India Growth Fund Series V – since April, 2018
Kotak India Growth Fund Series I – since April, 2015
Kotak Infrastructure and Economic Reform Fund – since January, 2015
Kotak 50 Fund – since January 2014
Volatility: Diversifying the portfolio adequately will mitigate volatility and keep the overall volatility of the portfolio in line with the investment objective of the fund. The volatility would also be monitored with respect to the benchmark and the peer set.
Investment: Complying with the rules and regulations of SEBI, the scheme will abide its guidelines for risk exposure. The risk is regularly monitored and necessary action to be taken as and when required.
Being a close ended fund, it will not require active liquidity management.
KMAMC is a wholly owned subsidiary of Kotak Mahindra Bank and is the asset manager for Kotak Mahindra Mutual Fund.
Commenced in December 1998, KMAMC has an approx. of 7.5 lacs investors in its various schemes. Catering to various type of investors with varying risk and objectives, it offers many schemes to suit the purpose.
Currently, it has 84 branches across 80 cities.
The scheme aims to provide long-term growth and diversify its investment. Investors should invest in the fund if they have little knowledge of the markets and if they want to be free of evaluating each stock of the NIFTY 200 Index.
Also since this is a close-ended scheme that aims for capital appreciation, the investors should refrain if they want immediate money or liquidity.
So they must stay invested to be benefited from the long-term growth and the skills and ability of the fund manager.
Disclaimer: the views expressed here are of the author and do not reflect those of Groww.