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Kotak Hybrid Fixed Term Plan - Series 2, a close-ended debt scheme with 3 years maturity. The Objective of the Scheme is to generate income and minimize interest rate volatility by investing in Debt & Money Market securities that mature on or before the maturity of the scheme, and also to generate capital appreciation by investing in equity/ equity related instruments.

 

Scheme Facts

Fund manager
Mr. Abhishek Bisen Mr. Deepak Gupta
Investment manager
Kotak Mahindra AMC Ltd.
Trustee
Kotak Mahindra Trustee Co. Ltd.
Benchmark
CRISIL MIP Blended Index
Load structure
Exit load: Nil
Exchange listed
Bombay Stock Exchange

Investment strategy

The investment strategy is aimed at generating income and reduce interest rate volatility by investing in debt securities that mature on or before the maturity of the scheme and at the same time attempting to generate growth through investments in equity and equity related instruments.

a. Debt Portion: Investments may be made in such instruments, which, in the opinion of the Fund Manager, are of acceptable credit risk where chances of default are at a minimum. The Fund Manager may generally be guided by, but not restrained by, the ratings announced by various rating agencies on the assets in the portfolio. The maturity profile of debt instruments may be selected in accordance with the Fund Manager's view regarding market conditions, interest rate outlook and stability of rating.

Emphasis may be given to choosing securities, which, in the opinion of the Fund Manager, are less prone to default risk. The Scheme is not restrained from investing in listed/unlisted and / or rated / unrated debt securities, Gilts / Government Securities, securities issued/guaranteed by the Central / State Governments, securities issued by public / private sector companies / corporations, financial institutions and / or money market instruments such as commercial paper, certificates of deposit, permitted securities under a repo agreement etc., provided the investments are within the limits indicated in the Asset Allocation Table. The instruments may carry fixed rate of return or floating rate of return or may be issued on discount basis. The Scheme may invest in call money / term money market in terms of RBI guidelines in this respect. Investment in unrated debt securities will be made with the prior approval of the Board of the AMC, provided the investment is in terms of the parameters approved by the Board of the Trustee. Where the proposed investment is not within the parameters as mentioned above, approval of the Boards of both the AMC and the Trustee will be taken before making the investment.

The AMC will have an internal policy for selection of assets of the portfolio from time to time, taking into account multiple ratings, rating migration, credit premium over sovereign risk, general economic conditions and such other criteria. Such an internal policy from time to time will lay down maximum/minimum exposure for different ratings, norms for investing in unrated paper, liquidity norms and so on.

b. Equity Portion: The investment strategy of the AMC will be directed to investing in stocks as indicated in the Asset Allocation Table, which, in the opinion of the Fund Manager, are priced at a material discount to their intrinsic value. Such intrinsic value will be a function of both past performance and future growth prospects. The process of discovering the intrinsic value will be through in-house research, supplemented by research available from other sources.

The equity portfolio may not be fully diversified at all points of time as the Fund Manager may restrict investments in a few select companies.

To avoid duplication of portfolios and to reduce expenses, the Scheme may invest in any other scheme of the Fund to the extent permitted by the Regulations. In such an event, as per the Regulations, the AMC cannot charge management fees on the amounts of the Schemes so invested. The Fund may underwrite primary issuances of securities subject to the Regulations.

The Scheme may also use various derivative and hedging products from time to time, in the manner permitted by SEBI.

Dematerialization

Unit holders are given an option to hold the units in demat form in addition to account statement as per current practice.

The Unitholders intending to hold/trade the units the units in Demat form are required to have a beneficiary account with the Depository Participant (DP) (registered with NSDL / CDSL) and will be required to indicate in the application the DP's name, DP ID Number and the beneficiary account number of the applicant with the DP.

In case Unit holders do not provide their Demat Account details, an Account Statement shall be sent to them. Such unitholders will not be able to trade on the stock exchange.

The Unitholders are requested to fill in their demat account details in the space provided for the same in Key Information Memorandum (KIM) and application forms.

Applications Supported by Blocked Amount (ASBA)

Investors may apply through the ASBA facility during the NFO period of the Scheme by filling in the ASBA form and submitting the same to selected Self Certified Syndicate Banks (SCSBs) which are registered with SEBI for offering the ASBA facility, which in turn will block the amount in the account as per the authority contained in the ASBA form, and undertake other tasks as per the procedure specified therein.

Investors are also requested to check with their respective Banks for details regarding application through ASBA mode. The list of SCSBs are available on SEBI website www.sebi.gov.in also on the website of the stock exchanges.

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Essential Downloads

 

suitable for investors who are seeking*

Income over a medium to long term investment horizon


Investment in debt & money market instruments and long term capital appreciation by investing a portion of the assets in equity & equity related instruments.


Medium risk(Yellow)

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

Note: Risk may be represented as:

 

(BLUE) investors understand that their principal will be at
          low risk

 

(YELLOW) investors understand that their principal will be at
          medium risk

 

(BROWN) investors understand that their principal will be at
          high risk