NFO Alert: Kotak Mahindra Mutual Fund launches Kotak Special Opportunities Fund; all you need to know

Kotak Mahindra Mutual Fund announced the launch of the Kotak Special Opportunities Fund. The scheme opened for public subscription on June 10, 2024, and will close on June 24, 2024.

Abeer Ray
First Published12 Jun 2024, 09:29 AM IST
Kotak Mahindra Mutual Fund launches Kotak Special Opportunities Fund as a part of its new fund offers.
Kotak Mahindra Mutual Fund launches Kotak Special Opportunities Fund as a part of its new fund offers.

Kotak Mahindra Mutual Fund announced the launch of the Kotak Special Opportunities Fund, an open-ended equity scheme following a sectoral or thematic theme.

The scheme opened for public subscription on June 10, 2024, and will close on June 24, 2024. The scheme re-opens for continuous sale and repurchase on or before July 08, 2024.

What kind of mutual fund scheme is this?

This is an open-ended equity scheme following the special situations theme.

Also Read: Mutual Funds: Should you invest in NFO? Here is a framework that will help you decide

What is the main objective of investing in this fund?

The investment objective of the scheme is to generate long-term capital appreciation by investing predominantly in opportunities presented by special situations such as company-specific events/ developments, corporate restructuring, government policy change and/ or regulatory changes, technology-led disruption/innovation, or companies going through temporary but unique challenges and other similar instances.

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of 100 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation (% of net assets) of the scheme’s portfolio will be as follows:

Instruments

Indicative allocations (% of total assets)

Risk Profile

Minimum

Maximum

Equity and Equity Related Securities of special situations theme

80%

100%

Very High

Equity and Equity Related Securities Other than of special situations theme and Overseas Mutual Funds schemes/Foreign Securities

0%

20%

Very High

Debt and Money Market Securities

0%

20%

Low to Moderate

Units of REITs & InvITs

0%

10%

Very High

Are there similar mutual funds in the market?

To date, two asset management companies (AMCs) have launched such funds in the past. The following table illustrates the names of the mutual fund houses along with their respective funds in this category.

Name of the mutual fund house

Name of the fund

3-year returns (in %)

Aditya Birla Sun Life Mutual Fund

Aditya Birla Sun Life Special Opportunities Fund - Direct Plan

19.05

Axis Mutual Fund

Axis Special Situations Fund

16.35

WhiteOak Mutual Fund

WhiteOak Capital Special Opportunities Fund

-

Source: AMFI (As of June 11, 2024)

How will the scheme benchmark its performance?

The performance of the Scheme is measured against Nifty 500 TRI (Total Return Index). The Nifty 500 index represents the top 500 companies selected based on full market capitalization from the eligible universe. The Nifty 500 TRI represents over 95% of the free float market capitalization of the stocks listed on the NSE. The index is a fair representation of the indicative universe of the portfolio of the Scheme. 

In view of the same, the performance of the Scheme will be benchmarked with Nifty 500 TRI. The AMC/ Trustees may change the benchmark in the future for measuring the performance of the scheme and as per the guidelines and directives issued by SEBI from time to time.

Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would be calculated as under:

  • 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 and above the limit within 1 year from the date of allotment: 1%
  • If units are redeemed or switched out on or after 1 year from the date of allotment: NIL.

Who will manage this scheme?

Devender Singhal and Arjun Khanna will manage the scheme.

Does the fund contain any inherent risk?

The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

 

 

 

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First Published:12 Jun 2024, 09:29 AM IST
HomeMutual FundsNFO Alert: Kotak Mahindra Mutual Fund launches Kotak Special Opportunities Fund; all you need to know

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