The record date for the dividend distribution has been set as April 18, 2011. The objective of the scheme is to generate returns through investments in debt and money market instruments in order to minimize the interest rate risk to a great extent.
The dividend will be entire appreciation in net asset value of dividend option. Since Kotak FMP 19M Series 2 is maturing on April 18, 2011, the units of the scheme will not be available for trading on the NSE with effect from April 13, 2011.
The NAV of the scheme was at Rs 11.1798 per unit as on 11th April 2011 under dividend option of the scheme. The minimum investment amount of the scheme is Rs. 5,000. The scheme, which commenced on September 1, 2009, has posted a return of 3.40% during the period of January 1, 2011 to April 11, 2011.
As the asset allocation of the scheme is in debt and money market instrument hence there will be less risk in comparison to equity and equity linked schemes.
The return generated by this scheme was similar to that of other schemes of the AMC in the same category. Kotak FMP 18M S-2 in same category is giving the return of 2.81% during the period of January 1, 2011 to April 11, 2011, and another scheme of same category but of different duration named as Kotak FMP 24M S-1 is posting a return of 2.10% during the same period.