Kotak FMP Series 204 – 1141 Days is a close-ended debt scheme having the moderate type of risk associated with it. Investors who want income over long-term horizon and want to invest in debt and money market securities may opt for this scheme.
Here are a few things you should know before investing in this scheme:
New Fund Offer time period
The NFO opened on May 8, 2017, and closes on May 11, 2017.
The investment objective of the scheme is to generate returns through investments in debt and money market instruments with a view to reduce the interest rate risk. The scheme will invest in debt and money market securities, maturing on or before the maturity of the scheme. There is no assurance that the investment objective of the scheme will be achieved.
The asset allocation under the Scheme, under normal circumstances, will be as follows:
Investment in derivatives will be up to 50% of the net assets of the scheme. The total gross exposure investment in debt + money market instruments + derivatives (fixed income) shall not exceed 100% of net assets of the scheme.
Liquidity of the Scheme
Units of this scheme will be listed on National Stock Exchange of India Limited. Investors may sell their units in the stock exchange(s) on which these units are listed on all the trading days of the stock exchange. The units cannot be redeemed with KMMF until the maturity of the scheme.
There is no entry load and no exit load associated with the scheme.
Minimum Application Charges
The MAC of the scheme is Rs. 5000 and can be increased in multiples of Rs 10 for purchase and switch-ins. This clause is applicable only for purchases and switches in during the NFO.
The performance of the scheme shall be benchmarked against CRISIL Composite Bond Fund Index
It is, however, to be noted that one should consult one’s financial adviser before investing in such a fund. Moreover, one must link one’s investments to one’s financial goals of life.
(Source: amfiinida website)