Kotak Dividend Yield Fund - Regular (G)

The scheme aims to generate long-term capital appreciation and/or dividend distribution by investing predominantly in a well-diversified portfolio of equity and equity related instruments of dividend yielding companies. The scheme investment will be active in nature. The scheme will invest predominantly in equity and equity related instruments of dividend yielding companies at the time of investment. Companies may also choose to do a buyback in addition to or as an alternative to dividend. This also constitutes a yield to shareholders. The Scheme will consider dividend yielding stocks which have paid dividend (or done a buyback) in at least one of the three preceding financial years. The aim will be to build a portfolio, which represents a cross section of the dividend yielding companies in the prevailing market. In order to reduce the risk of volatility, the Scheme will diversify across major industries and economic sectors to the extent possible. Though the dividend yield is the major criteria for selection of the stocks for constructing portfolio, other parameters such as but not limited to cash flow generation, earning growth prospect, business fundamentals, expansion plans, competitive position including pricing power, strong balance sheet, management quality etc. would also be considered. Although the scheme will predominantly invest in equity and equity related instruments of dividend yielding companies, it retains the flexibility to take some exposure beyond the dividend yielding companies, based on the asset allocation pattern of the scheme. The scheme may use Derivatives traded on recognized stock exchanges for the purpose of hedging, portfolio rebalancing and other purposes as may be permitted by SEBI. The scheme may invest in Debt & Money Market Instruments primarily for Liquidity purposes as well as for the purpose of meeting redemptions. The scheme may look to invest overseas for the purpose of diversification in terms of markets and currency. This can help the scheme in achieving higher returns, especially in markets that are experiencing strong economic growth or have undervalued assets. However, such exposure will be limited to a maximum of 20% of Net assets. The Scheme may use SLBM for earning additional income for the scheme with a lesser degree of risk. Scheme may invest in the units of Mutual Fund schemes of Kotak Mahindra Mutual Fund or any other Mutual Funds in terms of the prevailing SEBI (MF) Regulations. The scheme may take an exposure in units of REIT and InvITs at an opportune time to generate income from real estate or infrastructure assets. Investing in units of REITs and InvITs has the potential to generate capital appreciation and regular income streams. "The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments".