Kotak Mutual Fund launches Smart Facility for SIP, STP and SWP

Kotak Mutual Fund has launched Smart Facility for SIP, STP and SWP for all investors. According to the fund house, the new feature takes the traditional SIP/STP/SWP facility a step further, where investors’ instalment (in case of SIP/STP) or withdrawal (in case of SWP) varies based on market valuation. The new facility is available for all open-ended equity schemes, Equity Index Funds and Kotak Equity Hybrid Fund.

With the new facility, the amount of investment or withdrawal is based on equity valuations – Cheap, Neutral and Expensive. When valuations are expensive the default SIP instalment will be half (0.5x) of the base SIP amount and when valuations are cheap the instalment would be (2x) of the Base SIP amount. This facility also allows you to choose the minimum and maximum SIP amount. Investors can also opt for this option through the Systematic Transfer Plan (STP) route.

The valuations are decided on the net equity allocation of the Kotak Balanced Advantage Fund, which uses a combination of adjusted trailing Price to Earnings ratio (P/E ratio), and the trend as well as the sentiment data.


This platform is also available for redemptions through Systematic Withdrawal Plan (SWP). The Smart SWP enables the investor to redeem a higher amount when equity valuations are expensive and a lower amount when valuations are cheaper.

Nilesh Shah, MD & CEO – Kotak Mutual Fund said, “The Kotak Mutual Fund’s latest offering, the Smart Facility will help investors who are looking for an equity valuation-based investment approach to invest for their long-term goals. Equity markets will continue to be volatile. Smartness is in using this volatility in our favour. This is a very simple yet powerful tool for systematic investments which is easy to understand and even easier to invest in. I am sure investors in coming days will benefit from this offering.”