Kotak Mahindra Asset Management introduces a three-year closed-ended equity fund named as Kotak Indo World Infrastructure Fund. It is open for subscription from 27^th November 2007 and closes for subscription on 22nd December 2007. It offers an excellent investment avenue for long term investors looking to gain stable returns from exposure to companies likely to benefit from infrastructure investments in India and rest of the world.

Kotak Mahindra Asset Management Company announced the launch of its new product offering, the Kotak Indo World Infrastructure Fund, which will open for subscription from 29^th November 2007 and closes for subscription on 22nd December 2007, is a three-year closed-ended equity fund. The scheme seeks to generate long-term capital appreciation from a portfolio of equity, equity related securities or units of overseas mutual funds, which are likely to directly or indirectly contribute to or benefit from the growth in infrastructure in India / across the world.

The fund will primarily have a bottom up approach following a growth style to identify and create a diversified portfolio of companies, which present the most attractive investment opportunity. Within each sector in the infrastructure space, individual stocks would be identified based on their present status and future earnings potential to provide investors with an optimum risk adjusted long term return. The fund will have no sectoral or market capitalisation bias. This will lead to a sharper coverage of companies across sectors leading to potential growth stocks for investment.

Fund Snapshot:

NFO Opens: 27th November, 2007         NFO Closes: 22nd December, 2007

Asset Allocation: A) Equity and equity related securities in India related to infrastructure - 65% to 90%.

B1) Overseas equity and equity related securities or class of share /units of overseas mutual fund related to infrastructure - 10% to 35%.

B2) Debt and money market instruments - 0% to 35%.

Benchmark Index: S&P CNX Nifty to the extent of 65% of the portfolio and MSCI World Index to the extent of 35% of the portfolio.

Maturity of the Scheme: Three years after the date of allotment.

Fund Managers: Mr. Krishna Sanghvi will be the fund manager for domestic equity investments; Mr. Abhijeet Dey will be the dedicated fund manager for overseas investments and Mr. Ritesh Jain will be the fund manager for debt investments.

Investment Options: Growth, Dividend Reinvestment and Dividend Payout.

Minimum Investment Size: The minimum amount for investment is Rs. 5000 each and in multiples of Re 1 thereafter for both dividend and growth options. In case of investors opting to switch into the scheme from existing schemes of the fund during NFO, the minimum amount is Rs. 5000 and in multiples of Re 0.01 thereafter.

Exit Load: NIL. Unamortized expenses: As per SEBI circular dated 4 April, 2006, balance proportionate unamortized issue expenses shall be recovered from exiting unit holders. However, where an investor wants to switch his investments from one option to other option under the same scheme, initial issue expenses would not be recovered for such switch.

Liquidity: Liquidity will be available during a Liquidity Window, which will allow Redemptions during the last Business day of every month from the date of allotment of units, at prices related to Applicable NAV. The first such liquidity window shall be on the last business day of the third month from the date of allotment.

Initial Issue Expenses: Not exceeding 6%. The Initial issue expense would be amortised over the tenure of the scheme.

Taxation: Short Term Capital Gain taxed @ 10%. Long Term capital Gains - Nil.

Related Items:

---

Be first to comment this article

Only registered users can write comments.
Please login or register.