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Kotak Floating Rate Fund An open ended debt scheme predominantly investing in floating rate Instruments. The primary objective of the Scheme is to generate income through investment primarily in floating rate debt instruments, fixed rate debt instruments swapped for floating rate returns and money market instruments. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.


 

Scheme Facts

Fund manager
Mr. Deepak Agrawal, Mr. Arjun Khanna
Investment manager
Kotak Mahindra AMC Ltd.
Trustee
Kotak Mahindra Trustee Co. Ltd.
Benchmark
NIFTY Ultra Short Duration Debt Index TRI
Load structure
Entry load: Nil
Exit load: Nil
Initial offer
` 1000 per unit
Payable to
Kotak Floating Rate Fund

Other Details

Plans available:- There will be two plans under the Scheme namely, Direct Plan and Regular Plan.

Direct Plan: This Plan is only for investors who purchase /subscribe units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. Regular Plan: This Plan is for investors who wish to route their investment through any distributor. The portfolio of both plans will be unsegregated.

Default Plan- Investors subscribing under Direct Plan of a Scheme will have to indicate "Direct Plan" against the Scheme name in the application form e.g. "Kotak Floating Rate Fund - Direct Plan". Investors should also indicate "Direct" in the ARN column of the application form.

Minimum Application Amount- Rs. 5,000/- and in multiples of Re. 1 for purchase and Re 0.01 for switches.

At present, applications for investing in scheme through cash are not accepted by Kotak AMC. The Asset Management Company is in process of implementing adequate systems and controls to accept Cash Investment in the Scheme. Information in this regard will be provided to Investors as and when the facility is made available.

Investment strategy

The scheme will seek to generate returns by investing predominantly in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps/ derivatives). The Fund Manager may be guided by, but not restrained by, the ratings announced by various rating agencies on the assets in the portfolio.

The scheme may invest in another scheme of the Kotak Mahindra Mutual Fund or any other Mutual Fund without charging any fees, provided that aggregate inter-scheme investment made by all schemes under the management of Kotak Mahindra Asset Management Company Limited or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of Kotak Mahindra Mutual Fund. The Fund may underwrite primary issuances of securities subject to the Regulations.

Risk Control Measures: Risk control measures for investment strategy:

The fund will comply with the prescribed SEBI limits on exposure. Risk is monitored at periodic intervals and the portfolio is rebalanced within the specified time period in case of any deviations.

Risk mitigation measures for portfolio volatility

The scheme invests predominantly in floating rate instruments and therefore the interest rate risk is minimal.

The scheme also invests a significant portion in high credit quality papers to mitigate credit risk and the resultant volatility. Portfolio volatility is monitored on a periodic basis relative to the benchmark and the peer set.

Risk mitigation measures for managing liquidity

To manage liquidity, sufficient investments are made in money market instruments. Investments are also made in maturity buckets to provision for unforeseen outflows

Applications Supported by Blocked Amount (ASBA)

ASBA- As per SEBI vide its circular no. SEBI/IMD/CIR No 18 / 198647 /2010dated March 15, 2010 an investor can subscribe to the New Fund Offer (NFO) through ASBA facility. The ASBA facility is offered by selected Self Certified Syndicate Banks (SCSBs) which are registered with SEBI for offering the facility, and whose names appear in the list of SCSBs as displayed by SEBI on its website at www.sebi.gov.in.

ASBA is an application containing an authorization given by the Investor to block the application money in his specified bank account towards the subscription of Units offered during the NFO of the Schemes. On intimation of allotment by CAMS to the banker the investors account shall be debited to the extent of the amount due thereon. On allotment, units will be credited to the Investor's demat account as specified in the ASBA application form. ASBA application forms can be rejected by the AMC/Registrar/ SCSBs, on the following technical grounds

Grounds for rejection of ASBA applications:-

  1. ASBA application forms can be rejected by the AMC/Registrar/ SCSBs, on the following technical grounds.

  2. Applications by persons not competent to contract under the Indian Contract Act, 1872, including but not limited to minors, insane persons etc.

  3. Mode of ASBA i.e. either Physical ASBA or Electronic ASBA, not selected or ticked.

  4. ASBA Application Form without the stamp of the SCSB.

  5. Application by any person outside India if not in compliance with applicable foreign and Indian laws.

  6. Bank account details not given/incorrect details given.

  7. Duly certified Power of Attorney, if applicable, not submitted alongwith the ASBA application form.

  8. No corresponding records available with the Depositories matching the parameters namely (a) Names of the ASBA applicants (including the order of names of joint holders) (b) DP ID (c) Beneficiary account number or any other relevant details pertaining to the Depository Account.

  9. Insufficient funds in the investor's account.

  10. Application accepted by SCSB and not uploaded on/with the Exchange/ Registrar.

 

SUITABLE FOR INVESTORS WHO ARE SEEKING*

Income over a short term investment horizon


Investment in debt & money market securities including Government Securities


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

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