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Kotak Mutual Fund to launch a new NFO in the multi-cap fund category: Kotak Multi Cap Fund

Kotak Mutual Fund is launching a new multi-cap scheme, Kotak Multi Cap Fund. It will be following a diversified asset allocation investment strategy. The fund will invest in equity and equity-related securities across large-cap, mid-cap, and small-cap segments.

The New Fund Offer (NFO) period for the Kotak Multi Cap Fund is from September 08, 2021 to September 22, 2021.  The scheme will re-open for continuous sale or repurchase on or before October 06, 2021. However, the scheme doesn’t assure or guarantee that the primary objective of the fund will be realised.

Objective

The fund’s primary objective is to offer long-term capital growth through diversification of dynamic assets to build a portfolio of equity and equity-related instruments across

market capitalisation. It will invest in large-cap, mid-cap, and small-cap stocks. However, the scheme doesn’t assure or guarantee that the primary objective of the fund will be realised.

Kotak Multi Cap Fund NFO Details

Kotak Multi Cap FundDetails
NFO Opening DateSeptember 08th, 2021
NFO Closing DateSeptember 22nd, 2021
Re-open DateWithin five business days from the date of allotment of units
Type of FundOpen-ended equity scheme
Fund ManagerEquity Portion: Mr. Harsha Upadhyaya and Mr. Devender Singhal Debt Portion: Mr. Abhishek BisenOverseas Investment: Mr. Arjun Khanna
Minimum Investment AmountINR 5,000 and in multiples of Re 1
Minimum Additional Purchase AmountINR 1,000 and in multiples of Re 1
Exit Load0 -1%
SuitabilityVery High
BenchmarkNifty 500 Multicap 50:25:25 Total Returns Index
Plans and OptionsRegular Plan & Direct Plan
NOTE: 
  • The investment amount should be a multiple of INR 1/-
  • The minimum SIP of 10 installments of each INR 500/-
  • Minimum SWP of amount INR 1,000/- and STP of amount INR 1,000/- which are subject to a minimum of six installments/ entire appreciation
  • Exit Load – It will be NIL for redemption/ switch out of up to 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment. It will be 1% if units redeemed or switched out are in excess of the limit within 1 year from the date of allotment. Also, if units are redeemed or switched out on or after 1 year from the date of allotment it will be NIL.

Who Can Invest?

Kotak Multi Cap Fund best suits investors who aim for long-term wealth appreciation. The fund spreads its assets dynamically across equity and equity-linked securities, indicating capital appreciation with portfolio diversification. The fund will be subject to high volatility and higher market liquidity risk. Hence investors with a very high risk-taking capability can consider investing in this fund. Moreover, investors looking for portfolio diversification through dynamic asset allocation in large-cap, small-cap, and mid-cap companies can invest in this fund. The fund suits investors having an investment horizon of a minimum of 3+ years.

Fund Manager

Mr. Harsha Upadhyaya

Mr. Harsha Upadhyaya has over two decades of experience in Equity Research and Fund Management. He currently manages 4 funds of Kotak Mahindra Mutual Fund. The funds he handles are Kotak Equity Opportunities Fund since September 2004, Kotak Flexicap Fund (Erstwhile Known As Kotak Standard Multicap Fund) since September 2009, Kotak Tax Saver Fund since November 2005, and Kotak ESG Opportunities Fund since December 2020. He has also worked with companies such as DSP BlackRock, UTI Asset Management, Reliance Group, and SG Asia Securities. Mr. Harsha has a Bachelor of Engineering (Mechanical) from the National Institute of Technology, Surathkal. He also has a Post Graduate in Management (Finance) from the Indian Institute of Management, Lucknow. Mr. Upadhyaya is a Chartered Financial Analyst from the CFA Institute.

Other Funds Managed

Mr. Devender Singhal

Mr. Devender Singhal has been working with the Kotak Group since July 2007. His overall working experience is around 14 years in equity research and fund management. He manages around 11 funds and is responsible for the research coverage of FMCG, Automobiles, and Media sectors at Kotak AMC since Feb 2009. Prior to joining Kotak AMC, he has worked with PMS divisions of Kotak, Karvy, Religare, and P N Vijay Financial Services. He currently manages 11 funds of Kotak Mahindra Mutual Fund including the Kotak Debt Hybrid Fund – Growth, Kotak Sensex ETF June 2008, Kotak Asset Allocator Fund since August 2004, and Kotak PSU Bank ETF since November 2007. The recent funds he manages for Kotak AMC include Kotak India Growth Fund Series-4 February 2018, Kotak NV20 ETF since December 2015, Kotak Banking ETF since December 2014, Kotak Nifty ETF since February 2010, Kotak IT ETF since March 2021, Kotak Equity Savings Fund since October 2014, and Kotak NIFTY Next 50 Index since March 2021.

Other Funds Managed

Mr. Abhishek Bisen

Mr. Abhishek Bisen has been associated with Kotak AMC since October 2006 and currently manages around 9 funds of Kotak Mahindra Mutual Fund. He was earlier looking after Sales & Trading of Fixed Income Products and Portfolio Advisory at Securities Trading Corporation of India Ltd. Key responsibilities of Mr. Bisen with Kotak AMC include fund management of debt schemes. He has been handling Kotak Equity Hybrid Fund since November 2014, Kotak Debt Hybrid Fund, Kotak Bond Fund (Regular Plan) since April 2008, Kotak Gilt Fund (Regular & PF-Trust), and Kotak Equity Savings Fund since October 2014. Other funds handled by him are Kotak Gold ETF since July 2007, Kotak Gold Fund since March 2011, Kotak Balanced Advantage Fund since August 2018), and Kotak NASDAQ 100 FOF since February 2021. Mr. Bisen has also received the Highly Commended Investors in Indian Rupees Bonds award two times by the Asset magazine, Hong Kong. He has done his B.A. in Management and MBA in Finance.

Other Funds Managed

Mr. Arjun Khanna

Mr. Arjun Khanna has over a decade of experience in banking and financial companies. Prior to joining Kotak AMC Limited, Mr. Khanna has also worked in equity research with Principal PNB AMC.  He currently manages 5 funds of Kotak Mahindra Mutual Fund including Kotak Global Emerging Market Fund-Growth since September 2007, Kotak Pioneer Fund since October 2019, Kotak International REIT FOF – Growth since December 2020, Kotak NASDAQ 100 FOF since February 2021, and Kotak Global Innovation Fund of Fund since July 2021. Mr. Khanna has completed his Bachelor of Engineering (Electronics) from Mumbai University. He also holds a post-graduate in Masters of Management Studies (Finance) from Jamnalal Bajaj Institute of Management Studies. Mr. Khanna also has the Chartered Financial Analyst® designation and is a Certified Financial Risk Manager from the Global Association of Risk Professionals.

Other Funds Managed

Asset Allocation

Kotak Multi Cap Fund dynamically manages the asset allocation between equity and equity-related instruments. Minimum allocation of 25% is done to each segment i.e. large-cap, mid-cap, and small-cap companies. The fund aims to benefit through its diversified asset allocation and generate long-term capital appreciation. Following is the indicative asset allocation of the Kotak Multi Cap Fund.

InstrumentsIndicative Allocation(% of total assets)Risk Profile
MinimumMaximumLow/ Medium/ High
Equity and Equity related securities*75%100%Medium to High
Debt & Money market instruments#0%25%Low
Units issued by REITs & InvITs0%10%Medium to High

*Minimum investment in Equity & Equity related instruments of large Cap companies – 25% of total assets

Minimum  investment  in  Equity  &  Equity  related  instruments  of  mid-cap  companies  –  25%  of  total assets

Minimum investment in Equity & Equity related instruments of small-cap companies  –  25%  of  total assets. 

#Debt instruments shall be deemed to include securitised debts (excluding foreign  securitised debt) and investment in securitised debts may be up to 50% of Debt and Money  Market instruments. This will also include margin money for derivative transactions. 

#Money Market instruments include commercial papers, commercial bills, treasury bills, Government securities having an unexpired maturity up to one year, call or notice money, certificate of deposit, usance bills, and any other like instruments as specified by the Reserve Bank of India from time to time.

The fund proposes to invest in selected sectors as a strategy to control risks arising from volatility due to investing in equity markets. The asset allocation will vary between large-cap, mid-cap, and small-cap equities. The strategy shows how the fund managers will allocate assets to equity and equity related securities to appreciate investor’s capital utilizing variations of market cap. 

Concluding Remarks

Kotak Multi Cap Fund is an open-ended equity scheme that offers the advantage of diversified market cap-based asset allocation to its investors. The fund has the flexibility to invest in large-cap, mid-cap, and small-cap equities based on market conditions. The fund offers portfolio diversification and generates capital growth by capturing the upside potential of equity. The fund offers an SWP facility to investors interested in earning a regular income.

Investors must understand that a minimum investment horizon of 3 years is necessary to generate maximum benefits from the scheme. Also, investors with very high risk-taking capacity may consider this fund for generating wealth over the long-term but must take advice from their financial advisors. Since the fund doesn’t guarantee returns and is exposed to high risk of the equity markets, it is recommended to monitor the investment in this fund regularly to see if the results align with the financial goals of investors.

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