NFO alert: Kotak Mutual Fund launches a new Long Duration Fund; details inside!
In the following article we shed light on the NFOs, their objectives, fund allocation, fund managers and peer performance.
Kotak Long Duration Fund (NFO), launched by Kotak Mahindra Mutual Fund, aims to generate income and potentially appreciate capital through investments in debt and money market instruments. This open-ended long-duration Debt Fund has a minimum investment of Rs 100 and began accepting subscriptions on February 28, 2024, with an offer closure date of March 6, 2024. There are no additional loads associated with this scheme.
Investment Objective
To generate income/capital appreciation through investments in debt and money market instruments. There is no assurance that the investment objective of the Scheme will be achieved.
Kotak Long Duration Fund’s NFO is suitable for investors who are seeking long term wealth creation and to generate income and capital appreciation through investments in debt and money market instruments
Risk-o-meter: Kotak Long Duration Fund Scheme – Moderate, Benchmark – Moderate.
Potential Risk Class: It’s a relatively high interest rate risk and relatively low credit risk scheme (A - III).
Funds Allocation
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Investments
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Indicative Allocation
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Risk Profile
|
|
Debt & Money market instruments
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0 – 100%
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Low - Medium
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Benchmark
Kotak Long Duration Fund will benchmark against NIFTY Long Duration Debt Index- A-III
Fund Managers
Mr. Abhishek Bisen, Age: 45 Years, Educational Qualification: B A Management, MBA Finance EPAF- IIM-C.
Ms. Palha Khanna, Age: 26 years, Bachelors in Commerce and MBA in Finance.
What is Long Duration Fund?
A Long Duration Fund is a type of debt mutual fund that primarily invests in government and corporate bonds with maturities exceeding seven years. These funds aim to generate returns through both interest income earned on the bonds and capital appreciation from the bonds' value in the market.
Key Characteristics:
- Higher potential returns: from longer bond maturities.
- Higher interest rate sensitivity: prices more volatile due to longer maturities.
- Suitable for long-term investors: can ride out market volatility.
Peers of Kotak Long Duration Fund
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Scheme Name
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AUM (Crore)
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Expense Ratio (%)
|
|
| |
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Bandhan Bond Income Reg Gr
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493.59
|
1.99
|
|
|
ICICI Pru Long Term Bond Gr
|
691.98
|
0.9
|
|
|
ABSL Long Duration Fund Reg Gr
|
90.13
|
1.08
|
|
|
Axis Long Duration Fund Reg Gr
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193.58
|
0.75
|
|
|
Nippon India Nivesh Lakshya Gr
|
6984.29
|
0.64
|
|
|
UTI Long Duration Fund Reg Gr
|
71.97
|
1.51
|
|
|
SBI Long Duration Fund Reg Gr
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1207.37
|
0.68
|
|
|
HDFC Long Duration Debt Fund Gr
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1738.26
|
0.6
|
|
Disclaimer: The article is for informational purposes only and not investment advice.