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Kotak Mutual Fund files for transportation & logistics fund

Published on May 28, 2024 13:21

Kotak Mutual Fund has filed a draft prospectus with the Securities and Exchange Board of India (Sebi) to launch a new open-ended equity scheme, the Kotak Transportation & Logistics Fund.

This fund will focus on investing in companies engaged in the transportation and logistics sector, aiming to generate long-term capital appreciation for investors. The scheme`s performance will be benchmarked against the Nifty Transportation & Logistics Total Return Index (TRI).

The fund will be managed by a team of three including Nalin Rasik Bhatt, Abhishek Bisen, and Arjun Khanna. It will be available in both regular and direct plans, with growth and dividend reinvestment (IDCW) options for each. The minimum investment amount starts at Rs 100 for lumpsum and SIP investments, and there is a minimum redemption amount of Rs 1000 or 100 units, whichever is lower.

An exit load of 1% will apply for redemptions or switches within 30 days of investment. The investment strategy involves allocating 80-100% of the corpus towards equity and equity-linked instruments of transportation & logistics companies. The remaining 0-20% can be invested in stocks outside the sector, debt instruments, and units of Real Estate Investment Trusts (REITs) & Infrastructure Investment Trusts (InvITs).

The total expense ratio (TER) for this scheme will be capped at 2.25%.

This fund caters to investors seeking long-term capital growth through investments in the transportation and logistics sector, which carries a "very high" risk rating as per the scheme`s riskometer.

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