Kotak Mutual Fund has launched an NFO, which is open for subscription from September 8th, 2021 to September 22nd, 2021.
Investment Objective: The investment objective of the scheme is to provide capital appreciation by investing in an underlying fund of equity and equity related instruments with certain market cap restrictions in place
Benchmark: Nifty 500 Multicap 50:25:25 TRI
The fund offers the stability of largecap, growth of midcap and promise of smallcap
The fund model is based on mean reversion indicators + momentum
Mean reversion helps in timing of overweight and momentum guides on how long the position can stay
The focus in large caps will be economic revival and will focus on sectors like financialization, outsourcing, demographic dividend and capex revival.
The mid and small caps will focus on buying businesses of the future and will primarily buy sectors like chemicals, API's, agri stocks, real estate recovery and post-covid unlock themes
The fund will invest minimum 25% each in small, mid and largecaps.
The remaining 25% will be dynamically allocated basis momentum and valuation metrics
Large Caps - 26-31%
Mid Caps - 37-42%
Small Caps - 32-37%
Why should you invest?
- Ability to dynamically allocate between market caps within the set of restrictions
- Past performance of similar funds by the AMC have a consistent track-record of generating benchmark-beating returns.
Multicap funds offer higher risk-reward portfolios than flexicaps as they have a minimum allocation to each market cap. Equity investors with a moderate to high risk appetite can add a multicap fund in their portfolio.
It is of utmost importance that the fund should be discussed with your financial advisor and then ascertain whether it is suitable to invest. Always read the scheme documents fully before investing.