Kotak Mahindra Mutual fund is managed by Kotak Mahindra Asset Management Company Limited (KMAMC) which began its operations in December 1998. The fund house is a wholly-owned subsidiary of Kotak Mahindra Bank Limited and has around 7.5 lakh investors across 76 cities. Kotak Mahindra Mutual Fund offers schemes across various asset classes of equity, debt, hybrid, etc.
The Kotak Equity Savings Fund - Regular - Monthly Dividend Reinvestment scheme is one of the 12 equity schemes offered by Kotak Mahindra Mutual Fund. It is an open-ended scheme that invests in arbitrage opportunities in the derivatives and cash segment of the equity market to fetch favourable returns for the investor.
Investment objective:
To generate income and capital gains for the investor through investment in arbitrage opportunities in the derivatives and cash segment of the equity market and amplify returns by moderate exposure to equity and its related securities.
Key features:
The Kotak Equity Savings Fund - Regular - Monthly Dividend Reinvestment scheme lets investors reinvest the dividend earned back into the scheme at the prevailing Net Asset Value (NAV) on a monthly basis and exhibits the below features:
|
Type of fund |
An open-ended equity scheme |
|
Plans available |
Growth and Dividend (Reinvestment and Payout) |
|
Options under each plan |
Dividend payout and reinvestment option is available both on a monthly and quarterly basis |
|
Risk |
Moderately High |
|
Systematic Investment Plan |
Available |
|
Systematic Transfer Plan |
Available |
|
Systematic Withdrawal Plan |
Available |
Investment amount for Kotak Equity Savings Fund - Regular - Monthly Dividend Reinvestment
|
Minimum Application Amount |
Rs.5,000 for purchases in multiples of Re.1 and for switches Re.0.01 |
|
Minimum Additional Investment |
Rs.1,000 for purchases in multiples of Re.1 and for switches Re.0.01 |
|
Minimum installment for Systematic Investment Plan (SIP) |
Rs.1,000 Minimum number of instalments (Rs.1,000 monthly instalment) - 6 |
|
Minimum installment for Systematic Withdrawal Plan (SWP) |
For fixed option: Rs.1,000 For appreciation option: Equivalent to periodic appreciation on the investment |
|
Entry Load |
Not Applicable |
|
Exit Load |
No exit load will be charged if the investor exits the scheme 1 year from unit allotment date for up to 10% of the investment. Any redemption/switch out for more than 10% of the units will attract an exit load of 1% if investor exits 1 year before unit allotment date. No exit load will be charged for exit after 1 year. |
Asset Allocation for Kotak Equity Savings Fund - Regular - Monthly Dividend Reinvestment
|
Instruments |
Allocations (Percentage of total assets) |
Risk Profile |
Asset Class |
|
Equity and its related securities including derivatives |
65% to 90% |
Medium to High |
A |
|
Cash futures arbitrage |
15% to 80% |
Low to Medium |
A1 |
|
Net long equity exposure |
10% to 50% |
High |
A2 |
|
Money market instruments and debt securities |
10% to 35% |
Low |
B |
|
Units issued by InvITs and REITs |
0 to 10% |
Medium to High |
C |
Who can Invest in Kotak Equity Savings Fund?
The below-mentioned entities/persons are eligible to subscribe to the units of Kotak Equity Savings Fund:
- Adult individuals residing in India, either singly or jointly (cannot exceed 3 people)
- Hindu Undivided Families
- Minors through a legal guardian or parent
- Persons of Indian Origin (PIO)/Non-Resident Indians (NRIs), on repatriation or non-repatriation basis
- Association of Persons or Body of Individuals
- Corporate bodies and companies registered in India
- Partnership firms in the name of any one of the partner
- Universities and educational institutions
- Proprietorship in the name of the sole proprietor
- Religious and Charitable Trusts, Wakfs or endowments of private trusts
- SEBI registered Foreign Portfolio Investor
- Financial institutions and banks (including Regional Rural Banks and Co-operative Banks)
- Scientific and Industrial Research Organisations
- Army, Navy, Air Force, and other paramilitary funds
- International Multilateral Agencies approved by the RBI and Government of India
- Mutual fund schemes registered with SEBI (Securities and Exchange Board of India)
- Pensions/Gratuity/Provident Fund to a permissible extent
- AMC/Trustee or Sponsor or their associates
NAV Disclosure and Benchmark for Kotak Equity Savings Fund
The Net Asset Value (NAV) is calculated by dividing the net assets of the scheme by the number of units that are outstanding on the date of valuation. The computation will take into account any dividends declared and distribution tax, if applicable. The profits realised and income earned with regards to the units will remain invested and reflect in the unit of the NAVs.
The NAV is computed up to 3 decimals and declared at the end of each business day. The NAV will be updated on the website of AMFI (Association of Mutual Funds in India) at www.amfiindia.com by 9:00 p.m. and on the website of Kotak Asset Management - assetmanagement.kotak.com. The NAV will also be published in 2 newspapers with nationwide circulation on every business day. The first NAV of the scheme will be computed and declared within 5 business days from the allotment date and subsequently will be computed on a daily basis.
Liquidity: Since it is an open-ended scheme, purchases and redemptions can be done on each business day at the prevailing NAV before 5 days from unit allotment date.
Benchmark Index: 75% of Nifty 50 Arbitrage Index and 25% in Nifty 50
Fund Manager
Mr. Deepak Gupta and Mr. Abhishek Bisen.
Mr. Deepak Gupta has around 13 years of experience in the mutual fund industry while Mr. Abhishek Bisen has been with the fund house since October 2006.
Investment Restrictions of Kotak Equity Savings Fund
According to SEBI (Securities and Exchange Board of India) guidelines, the below-given restrictions apply with regards to the investment scheme:
- The scheme shall not invest above 10% of its NAV in equity or its related securities of any firm. The limit will, however, not apply to index funds, sectoral funds or industry-specific funds.
- The scheme shall not invest above 5% of its NAV in equity and its related securities that are not listed.
- The scheme shall not invest above 10% of its NAV on debt securities comprising money and non-money market securities that have been issued by a single issuer and are rated above the investment grade by a credit rating agency. This limit is expandable to 12% of the scheme’s NAV upon prior approval of the Board of Directors or Board of Trustees of the Asset Management Company (AMC). The limit is not applicable for investments in treasury bills, government securities, and CBLO (Collateralised Borrowing and Lending Obligation).
- No schemes of the mutual fund can own above 10% of any firm’s paid up capital carrying the voting rights.
- The scheme shall not invest above 10% of its NAV in unrated debt securities that have been issued by a single issuer and such securities can only invest a total of up to 25% of the scheme’s NAV. Such investments will have to be approved by the Board and Trustee of the AMC.
- The scheme shall not make any investments in any security issued through private placement, unlisted securities, and listed securities of group companies of the sponsors that is more than 25% of the net assets.
- The scheme shall not invest in any Fund of Funds (FoF) scheme.
- The mutual fund shall enter into transactions dealing with securities issued by the government only in dematerialised form.
Dividend Policy of Kotak Equity Savings Fund
The Kotak Equity Savings Fund is available in both growth and dividend variants. Under the dividend option, dividends will be distributed by the Trustee to the unitholders whose names are listed in the register of unitholders. The dividend warrants will be declared by the fund within 30 days from dividend declaration date. If the warrants are not issued within 30 days, the AMC has to pay a 15% p.a. interest to the unitholders.
The Dividend option is available under 2 sub-options - Reinvestment and Payout. Under the Dividend Payout Option, investors will receive the payout of their dividend directly in their bank account while under the reinvestment option, the dividend will be reinvested back into the scheme at the applicable NAV.
Other facilities under Kotak Equity Savings Fund
The Kotak Equity Savings Fund offers the below-given facilities:
- Systematic Investment Plan (SIP)
- SIP Booster Facility
- Systematic Transfer Plan
- Flex - SIP Facility
- Systematic Withdrawal Plan
- Switching
- Dividend Transfer Plan
- Daily frequency under Systematic Transfer Plan Facility
- Long Term Income Facility
Why you should Invest in Kotak Equity Savings Fund
- Professional management - The Kotak Equity Savings Fund is managed by 2 fund managers who have many years of experience in handling investments so you can rest assured that you will receive optimal returns on your investment.
- Liquidity - Being an open-ended scheme, the Kotak Equity Savings Fund offers liquidity to the investor by letting them redeem or purchase units on any business day.
- Good returns - Since the scheme invests in equity market, it fetches good returns on the investment which will help you grow your wealth over a long term.
Regular investment - The SIP facility offered by the Kotak Equity Savings Fund lets you invest in small amounts (minimum Rs.500) and on a periodic basis (monthly or quarterly). It cultivates a habit of regular investment in the investors.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar’s partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.
GST rate of 18% applicable for all financial services effective July 1, 2017.
