Kotak Launches New Debt Index Fund: Kotak Crisil-IBX AAA Financial Services Index – Sep 2027

Kotak Mutual Fund has introduced the Kotak Crisil-IBX AAA Financial Services Index – Sep 2027 Fund, an open-ended Target Maturity Debt Index Fund. This fund will invest in the CRISIL-IBX AAA Financial Services Index – Sep 2027, which features relatively high interest rate risk and low credit risk.

The new fund offer (NFO) opened for subscription on August 30 and closes on September 11. The scheme will reopen for further subscriptions on or before September 23.

The company stated that the scheme’s investment objective is to generate commensurate returns (before fees and expenses) with the performance of the CRISILIBX AAA Financial Services Index – Sep 2027, which seeks to track the performance of AAA issuers from the financial services sector maturing near the index’s target date. They further added that however, there can be no assurance that the scheme’s investment objective will be achieved.

The fund will be benchmarked against the CRISIL-IBX AAA Financial Services Index – Sep 2027 and will be managed by Abhishek Bisen. It will offer both direct and regular plans with growth and income distribution cum capital withdrawal (IDCW) options.

The exit load will be 0.25% of the applicable NAV for redemptions or switch-outs within 180 days from the allotment date, and nil for redemptions or switch-outs after 180 days. The minimum redemption amount is ₹100 or the account balance, whichever is lower. The maximum total expense ratio (TER) allowed under Regulation 52 (6) (b) is up to 1%.

The minimum initial investment amount is ₹100, with the same amount required for subsequent purchases or systematic investment plans (SIPs). For additional purchases, the minimum amount is also ₹100.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.