Kotak Mahindra Mutual Fund Files Draft For Kotak FMP Series 333-335

Fixed Maturity Plans (FMPs) are ideal for investors seeking predictable and stable returns over a specific tenure. The Kotak FMP Series, as detailed in the draft filed with SEBI by Kotak Mahindra Mutual Fund, is a close-ended debt scheme that provides clarity and flexibility for conservative investors. 

Investment Objectives and Application Details

The Kotak FMP Series aims to generate income by investing in high-quality debt and money market instruments held until maturity.

Key application details include:

• Minimum Application Amount: Investors can begin with ₹5,000, with additional increments in multiples of ₹10 during the New Fund Offer (NFO).
• New Fund Offer Price: Units are offered at ₹10 per unit during the NFO.

These parameters ensure that the scheme is accessible to a broad spectrum of investors.

Exit Load and Redemption Policy

The scheme features a zero exit load, ensuring that investors can redeem their units at maturity without any charges. Redemption proceeds will be processed within a specified period post-maturity. However, interim redemption or trading is restricted, reinforcing the close-ended nature of the scheme.

Benchmarking and Options

The scheme’s performance is benchmarked against relevant indices:

1. NIFTY Liquid Index for short tenures up to 91 days.
2. NIFTY Medium to Long Duration Debt Index for tenures beyond seven years.

The scheme offers two plans:

Direct Plan: This is for investors buying directly from the fund.

Regular Plan: This is for those investing through distributors.

Both plans include the following options:

Growth Option: Accumulates returns for investors preferring reinvestment.

Income Distribution cum Capital Withdrawal (IDCW): Offers periodic payouts.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.