Kotak Gold Fund(G)

Performance

Kotak Mahindra Mutual Fund is managed by Mahindra Asset Management Company Limited (KMAMC) and commenced operations in December 1998. The fund house is wholly-owned by Kotak Mahindra Bank and has over 7.5 lakh investors in 80 cities. Kotak Mahindra Mutual Fund offers schemes across various asset classes - equity, liquid, hybrid, debt, and Exchange-Traded Funds (ETFs).

The Kotak Gold Fund - Growth is an open-ended Fund of Fund (FoF) scheme that invests in units of Kotak Gold Exchange Traded Fund. The growth option entitles investors to receive returns by way of capital gains instead of the income being distributed regularly.

Investment Objective:

To produce capital gains for the investor through investment in the units of Kotak Gold Exchange Traded Fund.

Key Features:

The Kotak Gold Fund is ideal for investors who wish to grow their capital through investment in the units of Kotak Gold ETF and exhibits the below given features:

Investment amount for Kotak Gold Fund

Asset Allocation for Kotak Gold Fund:

Who can invest in Kotak Gold Fund?

The following persons/entities are eligible to purchase the units of Kotak Gold Fund:

• Adults residing in India, either singly or jointly (not more than 3 individuals)
• Parents/Legal Guardians in minors’ behalf
• Corporate bodies and firms registered in India
• Co-operative and registered societies authorised to invest
• Public corporations and public sector undertakings (PSUs)
• Religious and charitable trusts
• Trustees of private trusts authorised under their trust deeds
• Partners of partnership firms
• Hindu Undivided Families (HUFs)
• Body of Individuals (BoI) or Association of Persons (AoP)
• Financial Institutions, Investment Institutions, and banks (including Regional Rural Banks and Co-operative Banks)
• SEBI registered mutual funds
• Non-Resident Indians (NRIs) and Persons of Indian Origin on repatriation or non-repatriation basis
• Government of India approved International Multilateral Agencies
• Navy/Army/Air Force, Para-Military Units and other eligible institutions
• Scientific and Industrial Research Organisations
• Foreign Portfolio investor, and Public Financial Institution
• Foreign Institutional Investors (FIIs) registered with SEBI
• Universities and Educational Institutions
• Other mutual fund schemes of Kotak Mahindra Mutual Fund

NAV Disclosure and Benchmark for Kotak Gold Fund:

The Net Asset Value (NAV) of the scheme is calculated by dividing the scheme’s net assets by the number of outstanding units that are outstanding on the date of valuation. The scheme’s NAV is computed up to 4 decimals and is announced at the end of every business day. The NAV will be published on the website of AMFI (www.amfiindia.com) by 10:00 a.m. the next business day.

The official website of Kotak Mutual Fund (www.assetmanagement.kotak.com) will also display the NAV of the scheme and send it for publication in at least 2 newspapers with countrywide circulation on each business day.

Liquidity: Being an open-ended scheme, purchases and redemptions can be done on any business day at the applicable NAV.

Benchmark Index: Price of physical gold

Fund Manager:

Mr. Abhishek Bisen

The fund manager for the Kotak Gold Fund is Mr. Abhishek Bisen and he has been with Kotak Mutual Fund since October 2006. Before joining the asset management firm, he worked with Securities Trading Corporation of India Ltd. The key responsibilities of Mr. Bisen include managing debt schemes and apart from the Kotak Gold Fund, he also manages the schemes - Kotak Debt Hybrid, Kotak Bond, Kotak Global Emerging Market Fund, Kotak Equity Hybrid, etc.

Investment Restrictions on Kotak Gold Fund:

The Securities and Exchange Board of India (SEBI) has laid down the following investment restrictions on subscription to the units of the Kotak Gold Fund:

• The scheme is not permitted to invest above 10% of its NAV in debt instruments that are unrated and issued by a single issuer. The total investment in such securities also cannot be more than 25% of the scheme’s NAV. Any such investments will need to be approved by the Board and Trustee of the AMC.
• The scheme is not allowed to invest above 10% of its NAV in debt securities issued by a single issuer and rated above the investment grade by a credit rating agency. This limit can be extended to 12% of the NAV provided that the Trust and Board of the AMC approves it.
• Debentures of any residual maturity period will attract the same restrictions as debt securities including the ones issued by public institutions/bodies such as municipal corporations, electricity boards, state transport corporations, etc. The restrictions however, will not apply to securities issued by central or state governments.
• 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 above 25% of the net assets.
• The scheme is not permitted to invest in any Fund of Funds (FoF) schemes.
• The mutual fund can enter into transactions dealing with government securities only in the dematerialised form.
• The scheme can invest the pending deployment of a scheme’s funds in short-term deposits of scheduled commercial banks without being charged any advisory or investment management fees.
• The scheme cannot advance loans for any purpose or borrow except to meet the scheme’s temporary liquidity needs. The borrowing however, cannot exceed 6 months and should not be above 20% of the scheme’s net assets.

Dividend Policy of Kotak Gold Fund:

Investors will be entitled to receive dividends that will be distributed at the discretion of the Trustee and on availability of surplus by way of realised profit. Only investors whose names appear on the register of unitholders will be eligible to receive dividends.

The dividend option will be available under 2 options - payout and reinvestment option. In the payout option, unitholders will receive payouts that they can encash through direct credit or any other means into their bank account. Investors opting for a dividend reinvestment will not receive payouts but the dividend will be invested back into the scheme.

Other Facilities offered under Kotak Gold Fund:

The Kotak Gold Fund offers the below facilities for the benefit of investors:

• Systematic Investment Plan (SIP)
• Systematic Withdrawal Plan (SWP)
• Switching
• Systematic Transfer Plan (STP)
• Dividend Transfer Plan (DTP)
• Daily frequency under STP facility

Why you should invest in Kotak Gold Fund:

• Professional management - The Kotak Gold Fund is managed by Mr. Abhishek Bisen who has over 10 years of experience in managing investments. With such an experience, you can be assured that your investment will fetch optimal returns.
• Liquidity - Since the scheme is open-ended, investors in the Kotak Gold Fund can redeem and purchase units at prevailing NAVs on every business day.
• Various investment options - The Kotak Gold Fund offers many investment options to cater to the different needs of investors - direct, regular, growth, and dividend option. Direct plans have lower expense ratios, regular plans have slightly higher expense ratios, growth option where investors receive a lump-sum amount at the end of the scheme period, and dividend option where investors receive regular income.

Additional benefits - The scheme offers special products such as Switching, Dividend Transfer Plan, etc. Under the switching facility, investors have an option to switch a part or the whole of their investments to another scheme of the same fund house. The dividend transfer plan on the other hand, allows investors to transfer their dividends to any other investment option.

GST rate of 18% applicable for all financial services effective July 1, 2017.