Kotak Mutual Fund's hybrid scheme opens tomorrow

MUMBAI: Kotak Mutual Fund today said it will launch a new fund offer (NFO) tomorrow that aims to generate income by investing in debt, equity and money markets.

The minimum investment in Kotak Hybrid Fixed Term Plan Series-I will be Rs 10,000 and the fund will close on January 12. The close-ended scheme has a maturity period of 24 months.

"Hybrid schemes offer low risks as the income earned from debt instruments helps to alleviate the risk associated with equity and equity-related instruments," Kotak Mutual Fund Chief Executive Officer Sandesh Kirkire said.

"Investors who aim to seek returns which are potentially higher than traditional deposit instruments and are tax-efficient should allocate some of their funds to such hybrid schemes," he added.

At the end of the September quarter, Kotak Mutual Fund managed assets worth Rs 32,100.78 crore.