Kotak Mutual Fund suspends subscription in NASDAQ 100 Fund of Fund

Kotak Mutual Fund has temporarily suspended the subscription of units Kotak NASDAQ 100 Fund of Fund, an open-ended fund of funds investing in units of overseas ETFs and/or Index Fund based on the NASDAQ 100 Index.

The fund house informed about this to its unitholders through a notice-cum-addendum.

The changes will be effective from March 27.


The fund house said that this move comes to avoid a breach of industry-wide overseas limits as allowed by RBI with effect from March 27, 2024.

The addendum stated that the aforesaid suspension is temporary and will continue only till further notice in this regard.

Particulars	Impact
Subscription - Lumpsum / Switch in	Shall not be accepted effective from March 27, 2024. However, units may be allotted where the purchase or switch in transaction was processed/time-stamped prior to March 27, 2024.
Fresh Systematic Registration (including systematic transfer plan/Dividend Transfer Plan into the scheme	Shall not be accepted effective March 27, 2024
Installments of Systematic Investment (SIP)/Transfer Plans (STP)/Dividend Transfer Plan (DTP) into the scheme existing as on March 26, 2024	Existing SIP/STP/DTP instalments will be paused till further notice.
Investments to be made by designated employees in line with para 6.10 of SEBI master circular no. SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19,2023 (on alignment of interest of designated employees of the asset management companies with unit holders of mutual fund schemes)	Effective March 27, 2024, investments shall be made in units of those schemes whose risk value as per the risk-o-meter is equivalent or higher than the scheme.
Intra-Scheme (Regular to Direct and vice versa) switches and Intra-Plan (Growth to IDCW and vice versa) switches	No impact
Switch-out, redemptions, registration of fresh systematic withdrawal plan, and instalments of existing systematic withdrawal plan (where one of the designated schemes is the source scheme)

Source: Kotak Mutual Fund

All other terms and conditions of the scheme information document (SID)/ key information memorandum (KIM) including an application form of the aforesaid scheme remain unchanged. This addendum forms an integral part of the SID / KIM including an application form and common application form of the scheme, as amended from time to time.

The scheme manages assets of Rs 2,908.02 crore as of February 29, 2024, according to the data by ACE MF.