Kotak Mahindra Mutual Fund is launching a new fund offer for an ESG fund. Kotak ESG Opportunities Fund will open for subscriptions on November 20 and will close on December 4. Here are the details about the fund. Read on!
Environmental, social and governance-focused (ESG) funds invest in stocks of companies that do not cause any adverse environmental impact or social risks through its business activities. ESG fund managers mostly avoid companies that manufacture tobacco, alcoholic products or engage in gambling. According to the mutual fund classifications laid out by the Securities and Exchange Board of India (Sebi), ESG funds fall under the thematic fund category.
The mutual fund scheme will be an open-ended equity fund that invests in companies following the environmental, social and governance (ESG) criteria.
Also read : What is ESG Investing?
Here is what the indicative asset allocation looks like for the fund:
|Asset Class||Instruments||Indicative Allocation (% of net assets)||Risk Profile|
|A||Equity & Equity related instruments||80||100||High|
|A1||Equity & Equity related instruments of companies identified based on the Environmental, Social and Governance (ESG) criteria||80||100||High|
|A2||Equity & Equity related instruments other than those under A1||0||20||Medium to High|
|B||Debt and Money market instruments||0||20||Low to Medium|
|C||Units issued by REITs and InvITs||0||10||Medium to High|
Kotak ESG Fund will benchmark its performance against the Nifty 100 ESG TRI index. The index consists of companies that are a part of the Nifty 100 index but based also qualify for the ESG criteria. The weight of each constituent in the Nifty 100 ESG index is calculated based on the ESG score of the company.
To be eligible for the ESG index, stocks should fulfil the following criteria:
The fund will have both regular and direct plans. Under both plans, you will have the option to pick between growth and dividend options. Dividend payout and reinvestment plans are also available under the dividend option.
Here are all the details of the ESG Fund
|Name of the Fund||Kotak ESG Opportunities Fund|
|Type of Scheme||An open-ended equity scheme following the Environmental, Social and Governance (ESG) theme|
|Benchmark||Nifty 100 ESG TRI|
|NFO Dates||Opens on November 20, 2020, and closes on December 4, 2020|
|Fund Manager||Harsha Upadhyaya, Arjun Khanna|
|Minimum Application Amount/Minimum Purchase Amount (including switches)||Rs. 5,000 and in multiples of Re. 1 after that|
|Minimum Additional Investment (including switches)||Rs. 1000/- and in multiples of Rs 1 for purchases and Re. 0.01 for switches|
|Minimum Redemption Amount||In Rs: Rs 1,000
In Units: 100 units
|Exit Load||1%: If more units are redeemed/switched on or before 12 months from the date of allotment of Unit
NIL: If Units are redeemed/switched after 12 months from the date of allotment of units: Nil
|Plans||Regular Plan and Direct Plan|
|Options||Growth and Dividend Option (Payout, Dividend Reinvestment Option)|
Harsha Upadhayaya has a two-decade experience in fund management and equity research. Before Kotak MF, he worked with DSP BlackRock Investment Managers, UTI AMC, Reliance Group etc.
Other schemes managed by Mr Upadhyaya
Arjun Khanna has a 12-year experience with mutual funds in equity research. Before Kotak MF, Mr Khanna worked with Principal Mutual Fund. other funds managed by him are: