Kotak Mutual Fund Presents Transportation & Logistics Fund

Overview

Kotak Mutual has recently filed a draft with SEBI for the Kotak Transportation & Logistics Fund. It is an open-end equity scheme, focusing on the transportation and logistics sector.

Investment Suitability

This mutual fund is ideal for investors looking for long-term capital appreciation through investment predominantly in equity /equity-related securities of companies engaged in the business of transportation, logistics and related activities. The category of this scheme is Equity-Thematic.

Investment Objective

The primary goal of the Kotak Transportation & Logistics Fund is to generate long-term capital appreciation. This will be achieved through investing primarily in equities and equity-related instruments of firms operating within the sectors of transportation and logistics. However, it must be noted that there are no guarantees as to whether or not the objectives of this scheme will be achieved. 

Benchmark Index

The performance of this fund would be compared against Nifty Transportation & Logistics (Total Return Index, TRI). This index aims to track the portfolio return through stocks which have a thematic focus on transportation and logistics. From amongst qualifying industries, selection is done for 30 largest stocks based on 6-month average free-float Market Capitalization with individual stock weight capped at 10%. The composition of this benchmark makes it suitable for comparing the scheme’s performance. AMC/Trustees reserve the right to change the benchmark in future subject to guidelines issued by SEBI.

Plans and Options

Funds can be availed either by Direct or Regular Plan where Growth and IDCW options are available as Payout or Reinvestment also. While NAVs shall be different for these two options they shall be declared separately though investments would remain fixed over time. For IDCW payouts less than Rs. 100/- for physical units, payout will compulsorily get reinvested.

Purchase Details

• Initial Purchase (Non-SIP): Rs 100 and above
• Additional Purchase (Non-SIP): Rs 100 and higher for subsequent purchases
• SIP Purchase: Rs 100 and thereafter

Asset Allocation

 The scheme will allocate its assets as follows:

• Equity and Equity Related Securities of companies in Transportation & Logistics: 80%-100%
• Equity and Equity Related Securities of companies in Transportation & Logistics*: 0%-20%
• Debt and Money Market Securities: 0%-20%
• Units of REITs & InvITs 0%-10%

*As per clause4 Seventh Schedule of SEBI (Mutual Funds) Regulations,1996, the scheme may invest in units of Kotak Mahindra Mutual Fund or any other Mutual Fund Scheme.

Fund Managers

Mr. Nalin Rasik Bhatt will be the fund manager for the scheme. The debt securities shall be managed by Mr. Abhishek Bisen whereas Mr. Arjun Khanna shall be the dedicated fund manager for investments in foreign securities.

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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.