This Kotak Mutual Fund Scheme Gives Unique Opportunity; SIPs Start From Rs 500

Kotak Mahindra Asset Management Company has launched its new mutual fund scheme, Kotak Multi Asset Allocation Fund which offers a unique opportunity to to get the power of four with investments in equity, debt, commodity ETFs, Exchange Traded Commodity Derivatives (ETCDs) and overseas instruments. The fund offer is open from August 31 and will close on September 14, 2023. The scheme is a tax-efficient investment option, and investors can do SIPs with as low as Rs 500.

Kotak Multi Asset Allocation Fund aims to address the need of investors for a complete asset allocation solution that provides them access and convenience to various asset classes through a single investment vehicle.

As per the statement, the fund takes the hassle out of asset allocation by empowering investors to outsource it to professional fund managers. This open-ended scheme will invest in Equity and Equity securities, Debt and Money Market Instruments, Commodity ETFs and Exchange Traded Commodity Derivatives (ETCDs) (subject to regulatory limits).

Devender Singhal, EVP, KMAMC and Fund Manager for Kotak Multi Asset Allocation Fund said, "The beauty of multi-asset investing is its resilience - no single asset dictates the outcome, we endeavour to tap into the potential of each asset class. We're not just selecting securities; we're building a diversified portfolio aimed at reasonable risk-adjusted returns with moderated volatility. This fund also offers dynamism with an endeavour to increase Net Equity Allocation when markets are cheap and decrease when markets are expensive."

Kotak AMC further explained that the right asset allocation is the key to long-term wealth creation, as a lack of appropriate asset allocation can eat into investors' returns. However, investors tend to defer their allocation decisions as they can be influenced by the fear of more downside or greed for more upside. Lack of awareness and transaction costs including taxes can also deter them.

Also, the new fund offers tax efficiency on account of equity taxation along with higher risk-adjusted returns potential and diversification across asset classes. This makes it an ideal fund for every investor's core portfolio and well-suited for first-time investors seeking long-term capital growth.

Investors can invest a minimum amount of Rs 5,000 in multiples of Re 1 for purchase and Re 0.01 for switches. They can also invest through a Systematic Investment Plan (SIP) of Rs 500 (Subject to a minimum of 10 SIP instalments of Rs 500 each) during the New Fund Offer (NFO) period.

Nilesh Shah, Managing Director of KMAMC said, ". This Fund is an outcome of investors' need for a holistic asset allocation solution that would diversify across various asset classes and navigate different economic cycles. We call this our 'Load It, Latch It, Leave It' fund, wherein our proficient team of fund managers come together to strategize asset allocation with the collective expertise across asset classes."

Kotak Mahindra Mutual Fund has more than 19 years of experience gathered by managing the Kotak Multi Asset Allocator Fund of Fund- Dynamic., which has 46% in domestic net equity, 34% in debt, 9% in gold and 11% in offshore equity as on 31 July 2023.

However, Kotak AMC also said that past performance is no guarantee for future performance. Investors should consult their financial experts and tax advisors if in doubt about whether the product is suitable for them.