LAUNCH DATE:
25th November 1999
 
NAV:
Dividend option ` 27.77Growth option ` 96.84
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Kotak Quarterly Interval Plan Series 5, an interval debt fund.

The investment objective of the each Scheme is to generate returns through investments in debt and money market instruments.

 

Scheme Facts

Fund manager
Mr. Deepak Agrawal
Investment manager
Kotak Mahindra AMC Ltd.
Trustee
Kotak Mahindra Trustee Co. Ltd.
Benchmark
CRISIL Short Term Bond Index
Load structure
Exit load: Nil
Exchange listed
Bombay Stock Exchange
Initial offer
` 10 per unit
Payable to
Kotak Quarterly Interval Plan - Series 5

Investment strategy

For the purpose of achieving the investment objective, the Scheme will invest in a portfolio of Debt and Money Market securities only, maturing on or before maturity of the Scheme.

The AMC has an internal policy for selection of assets of the portfolio. The portfolio is constructed taking into account ratings from different rating agencies, rating migration, credit premium over the price of a sovereign security, general economic conditions and such other criteria. Such an internal policy from time to time lays down maximum/minimum exposure for different ratings, norms for investing in unrated paper, liquidity norms, and so on. Through such norms, the Scheme is expected to maintain a high quality portfolio and manage credit risk well.

Investment in unrated debt securities will be made with the prior approval of the Board of the AMC. Such investments would be within 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. Investment in unrated debt securities will be made subject to prescribed SEBI Regulations.

Investments may be made in instruments, which, in the opinion of the Fund Manager, are of an acceptable credit risk and chance of default is minimum. The Fund Manager will generally be guided by, but not restrained by, the ratings announced by various rating agencies on the assets in the portfolio.

Risk profile of the scheme

Mutual Fund Units involve investment risk including the possible loss of principal. Please read the SID carefully for details on risk factors before investment. Scheme specific risk factors summarized below :

1. The portfolio of Kotak Quarterly Interval Plan - Series 5 will comprise of securities issued by central and state government as also debt & money market instruments issued by corporates as mentioned under the paragraph ‘How will the Scheme allocate its assets'. All such securities will normally mature on or before maturity of the scheme. As the securities are normally held to maturity, the interest rate risk is significantly mitigated. The debt securities issued by the corporates do carry a credit risk as also the liquidity risk.

2. The Scheme will invest entirely in Debt/ Money Market Instruments and Government securities. Liquidity in these investments may be affected by trading volumes, settlement periods and transfer procedures. These factors may also affect the Scheme's ability to make intended purchases/sales, cause potential losses to the Scheme and result in the Scheme missing certain investment opportunities.

3. Different types of securities in which the scheme would invest as given in the SID carry different levels and types of risk. Accordingly the scheme's risk may increase or decrease depending upon its investment pattern. E.g. corporate bonds carry higher amount of risk than government securities. Further, even among corporate bonds, bonds, which are AAA rated, are comparatively less risky than bonds, which are AA rated.

4. The market price of Kotak Quarterly Interval Plan - Series 5, like any other listed security, is largely dependent on two factors, viz., (1) the intrinsic value of the unit (or NAV), and (2) demand and supply of units in the market. Sizeable demand or supply of the units in Exchange may lead to market price of the units to quote at premium or discount to NAV. Hence the price of the units is likely to hold significant variance (large premium or discount) from the latest declared NAV all the time.

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.and also on the website of the stock exchanges.

 

SUITABLE FOR INVESTORS WHO ARE SEEKING*

Income over a short term investment horizon


Investment in debt & money market securities


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

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