- 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.
- Options available
Each Plan under the Scheme will have two options namely Growth and Dividend Payout.
The NAVs of the above options under the scheme will be different and separately declared; the portfolio of the investments remaining the same. If the applicant does not indicate the choice of Option the application form, the application shall be accepted under growth option.
- Minimum Application Amount
- Rs. 5, 000/- and in multiples of Rs 10 for purchase and switch-ins. This clause is applicable only for purchases and switch in during the NFO.
- What are the investment strategies?
The scheme aims to provide long term capital growth by investing in a well-diversified portfolio of equity and equity related securities across market capitalisation and sectors.
The portfolio construction will be based on thematic approach to bottom up stock picking using the Business, Management and valuation (BMV) model. The Fund Manager will evaluate the business environment that a company operates in, the capability of the management to execute and scale up the business and valuation of the company based on fundamentals like discounted cash flows and PE ratios, etc.
The Close-ended nature of the scheme would allow the fund manager the flexibility to execute the investment strategy effectively over the tenure of the scheme and the above mentioned aspects will help the Fund Manager select companies/sectors which have good potential for long term growth prospects.
To reduce the risk of the portfolio, the Scheme may also use various derivative and hedging products from time to for hedging and rebalancing purposes, in the manner permitted by SEBI.
The Scheme may also invest a part of its corpus in money market instruments and/or units of debt and/or liquid schemes of Kotak Mutual Fund to meet liquidity requirements from time to time. The Scheme aims to invest in a portfolio of fixed income securities/debt instruments maturing on or before the maturity of the Scheme.
- Risk Control Measures
- Risk Control Measures for investment strategy:
The fund will comply with the prescribed SEBI limits on exposure. Risk is monitored and necessary action would be taken on the portfolio if required. Attribution analysis is done to monitor the under or over performance vis a vis the benchmark and the reasons for the same.
Risk Mitigation measures for portfolio volatility:
The overall volatility of the portfolio would be maintained in line with the objective of the scheme. The portfolio would be adequately diversified to mitigate volatility. Volatility would be monitored on with respect to the benchmark and peer set.
Risk mitigation measures for managing liquidity:
Since it is a close ended scheme, it would not require active liquidity management.
As per SEBI vide its circular no. SEBI/IMD/CIR No 18 / 198647 /2010 dated 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.
- Grounds for rejection of ASBA applications
ASBA application forms can be rejected by the AMC/Registrar/ SCSBs, on the following technical grounds: -
a. Applications by persons not competent to contract under the Indian Contract Act, 1872, including but not limited to minors, insane persons etc.
b. Mode of ASBA i.e. either Physical ASBA or Electronic ASBA, not selected or ticked.
c. ASBA Application Form without the stamp of the SCSB.
d. Application by any person outside India if not in compliance with applicable foreign and Indian laws.
e. Bank account details not given/incorrect details given.
f. Duly certified Power of Attorney, if applicable, not submitted along with the ASBA application form.
g. 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.
h. Insufficient funds in the investor's account.
i. Application accepted by SCSB and not uploaded on/with the Exchange/ Registrar.