Kotak Mahindra Mutual Fund launches 'Kotak Gold Fund'
The Kotak Gold Fund will be open for subscription from March 4 to March 18, 2011 and its performance will be benchmarked against the prices of physical gold.
By Agencies |
NEW DELHI: Kotak Mahindra Asset Management Company on 25th February, 2011 announced the launch of its latest fund-of-fund named ' Kotak Gold Fund'. It is an open ended fund of fund scheme which will enable investors to take exposure to gold without having a demat account. In addition to this, scheme offers investors the option to invest as little as Rs 1000 per month through the SIP route.
The Kotak Gold Fund will be open for subscription from March 4 to March 18, 2011 and its performance will be benchmarked against the prices of physical gold.
Speaking about the need for this product, Mr. Sandesh Kirkire chief Executive Officer, Kotak Mahindra Asset Management Company said, "We see a lot of potential with Kotak Gold Fund primarily because of two significant factors. One by providing a platform to investors to invest in gold without a demat account and also create a discipline by systematically investing in Gold as an asset class.” Mr Kirkire also elaborated, ‘ In recent times, gold has shown a low correlation with other asset classes while at the same time its returns potential has been similar to equity assets performance. As a result allocation into gold improves portfolio diversification and can minimize the downside risk of the portfolio.’
Taxation: The fund attracts the benefit of long term capital gains tax after 1 year of investment. This is in contrast to physical gold where you have to pay short term capital gains tax for a period upto 3 years. Also the returns of this fund does not attract any wealth tax, which is not the case with physical gold.
Investment objective: The investment objective of the scheme is to generate returns by investing in units of Kotak Gold Exchange Traded Fund.
Asset Allocation: Units of Kotak Gold ETF-95%-100%: Reverse Repo and /or CBLO and/or short term fixed deposits and /or money market instruments and/or schemes which invest predominantly in the money market security or liquid schemes. *0%-5% * The fund manager may invest in liquid schemes of Kotak Mahindra Mutual Fund. However the fund may invest in any other scheme of a mutual fund registered with SEBI, which invest predominantly in the money market securities.
Liquidity: Open ended. Purchases and redemptions at Prices related to Applicable NAV on each Business Day.
Load structure:
Entry Load: NIL
Exit Load: 2%, if redeemed/switch -out within 6 months from date of allotment;1%, if redeemed/switch -out after 6 months and before 1 year from the date of allotment; NIL if redeemed /switch-out after 1 year from the date of allotment .
Statutory Details: Kotak Mahindra Mutual Fund is a Trust (Indian Trusts Act, 1882). Investment Manager: Kotak Mahindra Asset Management Company Ltd. Sponsor: Kotak Mahindra Bank Ltd. (liability Rs. NIL). Trustee: Kotak Mahindra Trustee Company Ltd.
The Kotak Gold Fund will be open for subscription from March 4 to March 18, 2011 and its performance will be benchmarked against the prices of physical gold.
Speaking about the need for this product, Mr. Sandesh Kirkire chief Executive Officer, Kotak Mahindra Asset Management Company said, "We see a lot of potential with Kotak Gold Fund primarily because of two significant factors. One by providing a platform to investors to invest in gold without a demat account and also create a discipline by systematically investing in Gold as an asset class.” Mr Kirkire also elaborated, ‘ In recent times, gold has shown a low correlation with other asset classes while at the same time its returns potential has been similar to equity assets performance. As a result allocation into gold improves portfolio diversification and can minimize the downside risk of the portfolio.’
Taxation: The fund attracts the benefit of long term capital gains tax after 1 year of investment. This is in contrast to physical gold where you have to pay short term capital gains tax for a period upto 3 years. Also the returns of this fund does not attract any wealth tax, which is not the case with physical gold.
Investment objective: The investment objective of the scheme is to generate returns by investing in units of Kotak Gold Exchange Traded Fund.
Asset Allocation: Units of Kotak Gold ETF-95%-100%: Reverse Repo and /or CBLO and/or short term fixed deposits and /or money market instruments and/or schemes which invest predominantly in the money market security or liquid schemes. *0%-5% * The fund manager may invest in liquid schemes of Kotak Mahindra Mutual Fund. However the fund may invest in any other scheme of a mutual fund registered with SEBI, which invest predominantly in the money market securities.
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Liquidity: Open ended. Purchases and redemptions at Prices related to Applicable NAV on each Business Day.
Load structure:
Entry Load: NIL
Exit Load: 2%, if redeemed/switch -out within 6 months from date of allotment;1%, if redeemed/switch -out after 6 months and before 1 year from the date of allotment; NIL if redeemed /switch-out after 1 year from the date of allotment .
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Statutory Details: Kotak Mahindra Mutual Fund is a Trust (Indian Trusts Act, 1882). Investment Manager: Kotak Mahindra Asset Management Company Ltd. Sponsor: Kotak Mahindra Bank Ltd. (liability Rs. NIL). Trustee: Kotak Mahindra Trustee Company Ltd.
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