All About Kotak Mutual Fund's Hybrid Schemes!
Posted by Dishika Baheti on July 19th, 2018
When an investor enters the mutual fund market, he has his own strategies in mind related to investments that he is going to make. Every investor comes with unique needs, some invest for regular income and some to earn capital appreciation. Not only their risk appetites but also the time period for which they wish to invest differs. All, that a mutual fund company can do is to launch schemes by pre-determining the investors’ needs. Keeping in mind these factors, Kotak Mutual Fund has brought to market a number of schemes for different investors. The fund of Kotak Mahindra Mutual Fund (KMMF) is managed by Kotak Mahindra Asset Management Company (KMAMC) which is a wholly owned subsidiary of Kotak Mahindra Bank Limited. In this article, we are going to discuss about the two hybrid schemes that have been launched by it in the mutual fund investment market. These schemes are as follows.
Kotak Equity Hybrid Fund
It is an open-ended scheme by Kotak Mahindra Mutual Fund which was earlier known as Kotak Balance Fund. It was launched on November 25th, 1999, with an investment objective to help investors earn capital growth through investment made in equity and equity related instruments and income by investment made in debt and money market instruments. The minimum initial investment amount is Rs. 5000 and the additional investment amount in this scheme is Rs. 1000. If an investor redeems more than 10% of the units within one year of investment from the date of allotment, he becomes liable to pay 1% as exit load. The net asset value of Kotak Mutual Fund is Rs. 23.978 as on July 13th, 2018 and it’s fund managers are Mr. Pankaj Tibrewal and Mr. Abhishek Bisen.
The assets under management as on June 30th, 2018 were Rs. 2030 crores. The top five companies in whose equity it has invested majorly are HDFC Bank, Shree Cement, Bharat Financial Inclusion, Infosys, and Schaeffler India. The top five companies in which it has maximum debt holdings are 9.05% United Bank Of India 2027, 8.15% GOI 2022, 10.9% Punjab & Sind Bank 2099, 8.2% GOI 2022, and 10.49% Vijaya Bank.
Kotak Debt Hybrid Fund
This, one of the Kotak Mutual Funds is an open-ended scheme that invests predominantly in debt instruments. It was launched on December 02nd, 2003 as Kotak Monthly Income Plan with an investment objective to provide investors an opportunity to invest in a portfolio consisting of debt instruments with a moderate exposure to equity and equity related instruments to earn income along with capital appreciation. The minimum initial investment amount in this scheme is Rs. 10,000 and the additional investment amount is Rs. 1000. There is no entry load which is to be incurred by an investor. He can freely redeem up to 10% of the units within one year of investment. However, if he redeems more than 10% of the units within one year from the date of allotment, then he becomes liable to pay 1% as exit load. After completion of one year this amount becomes nil. Mr. Devender Singhal and Mr. Abhishek Bisen are managing the fund of this scheme. Investors should note that the risk involved in this scheme is moderately high. It’s net asset value as on July 13th, 2018 was Rs. 29.459.
Conclusion
This was all about Kotak Mahindra Mutual Funds that Kotak MF has launched under hybrid category. These are best for those investors who want to add such schemes in their portfolio that invests in a mixture of stocks and are ready to bear the risk that comes with it. Although, it is recommended that investors should consult financial advisor to understand about the schemes in a better way as there are factors which investors might not be aware of. So it is better to fully understand about a scheme before making a final decision.
