Kotak Mahindra Asset Management Company Limited (Kotak Mutual Fund) has announced the launch of Kotak Multicap Fund, an open-ended scheme that will provide the right mix of large-cap, mid-cap and small-cap stocks for stability, growth and potential.
In Feb-2021, the fund-house had announced the re-naming of Kotak Standard Multicap Fund to Kotak Flexicap Fund. That decision was in line with SEBIâ€™s categorisation mandate where multicap funds had to invest at least 25% of their corpus in large, mid and small cap stocks each. Flexicap funds however, have to have a minimum of 65% of their assets in equity and equity-related investments with no cap on how much should be invested in large, mid, or small caps.
Multicap offering USP
History shows how the returns and risks associated with large, mid and small-cap stocks keep changing. Therefore, it is appropriate to have a balanced allocation across large, mid and small-cap stocks.
With the investment aim of generating long-term capital appreciation from a portfolio of equity and equity related securities across market capitalisation, Kotak Multicap Fund can be suitable for all classes of investors aiming to fulfil long-term financial goals such as a childâ€™s education, retirement or buying a dream home.
The New Fund Offer opens for subscription from 8th – 22nd September, 2021.
The Kotak Multicap Fund will have a minimum 25% allocation in the large, mid and small-cap stocks each for maximum benefit. The balance 25% will be dynamically allocated by taking the help of its proprietary model.
The AMCâ€™s proprietary model will guide on which market to be overweight. It is based on 2 primary factors i.e. Mean reversionâ€“which suggests when exactly to go overweight in a particular market cap. And, Momentum â€“ which will essentially suggest the duration of the overweight position. Mean reversion helps in timing of overweight, while Momentum guides on how long the position can stay. Stock selection can enhance returns potential further.
Harsha Upadhyaya, President & CIO â€“ Equity, Kotak Mahindra Asset Management Company said, â€œThe equity Market is a Triveni Sangam of Large-cap, Mid-cap & Small-cap stocks with each having its own return and risk profiles. At Kotak Mutual Fund, we have added value to our investors by outperforming benchmark indices regularly across most time periods in all three categories â€“small-cap, mid-cap and large cap-funds and thus, are now offering the power of all 3 in one fund.â€
â€œWe follow a disciplined investment process of BMV i.e. by focusing on Business scalability & sustainability, Management Quality and Valuation parameters. We are also committed to the principles of Environmental, Social and Governance (ESG) factorsâ€, he added.
Fund benchmark – Nifty 500 Multicap 50:25:25 Total Returns Index.
Plans – Regular and direct.
Fund Manager(s) – Harsha Upadhyaya and Devender Singhal for Equity, Abhishek Bisen for Debt and Arjun Khanna for Overseas Investments
Minimum Investment Size – Initial Purchase (Non-SIP) – Rs. 5,000/-and in multiples of Rs. 1 for purchases, and Rs. 0.01 for switches.
Additional Purchase (Non-SIP) – Rs. 1,000/-and in multiples of Rs. 1 for purchases, and Rs. 0.01 for switches.
SIP Purchase – Rs. 500/- (Subject to a minimum of 10 SIP installments of Rs. 500/- each)
Exit load – For redemption/switch out of up to 10% of the initial investment amount (limit) purchased or switched in within 1 year from the
date of allotment: Nil.
If units redeemed or switched out are over the limit within 1 year from allotment: 1%
If units are redeemed or switched out on or after 1 year from allotment: NIL
Any exit load charged (net of Goods and Services Tax, if any) shall be credited back to the Scheme.
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