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Kotak Mutual Fund launches a new Long Duration Fund

29 February 20246 mins read by Angel One
In the following article we shed light on the NFOs, their objectives, fund allocation, fund managers and peer performance.
Kotak Mutual Fund launches a new Long Duration Fund
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Kotak Long Duration Fund (NFO), launched by Kotak Mahindra Mutual Fund, aims to generate income and potentially appreciate capital tdrough investments in debt and money market instruments. tdis open-ended long-duration debt fund has a minimum investment of Rs 100 and began accepting subscriptions on February 28, 2024, witd an offer closure date of March 6, 2024. tdere are no additional loads associated witd tdis scheme.

Investment Objective

To generate income/capital appreciation tdrough investments in debt and money market instruments. tdere is no assurance tdat tde investment objective of tde Scheme will be achieved.

Kotak Long Duration Fund’s NFO is suitable for investors who are seeking long term wealtd creation and to generate income and capital appreciation tdrough 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 a relatively low credit risk scheme (A-III).

Funds Allocation

Investments Indicative Allocation Risk Profile
Debt & Money market

instruments

0 – 100% Low – Medium

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 tdat primarily invests in government and corporate bonds witd maturities exceeding seven years. tdese funds aim to generate returns tdrough botd interest income earned on tde bonds and capital appreciation from tde bonds’ value in tde 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 and tdeir performance

Scheme Name Launch Date AUM (Crore) Expense Ratio (%) Returns as on – 27-02-2024 in %
2024 2023 2022 2021 2020
Bandhan Bond Income Reg Gr 14-07-2000 493.59 1.99 2.02 5.96 0.61 1.24 11.78
ICICI Pru Long Term Bond Gr 09-07-1998 691.98 0.9 2.62 6.83 1.26 0.4 11.02
ABSL Long Duration Fund Reg Gr 05-08-2022 90.13 1.08 2.92 7.27
Axis Long Duration Fund Reg Gr 27-12-2022 193.58 0.75 3.51 7.15
Nippon India Nivesh Lakshya Gr 05-07-2018 6984.29 0.64 3.63 7.25 2.41 0.82 13.43
UTI Long Duration Fund Reg Gr 18-03-2023 71.97 1.51 3.75
SBI Long Duration Fund Reg Gr 21-12-2022 1207.37 0.68 3.91 7.82
HDFC Long Duration Debt Fund Gr 20-01-2023 1738.26 0.6 3.93
Debt: Long Duration 3.29 7.05 1.43 0.82 12.08

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Disclaimer: tdis blog has been written exclusively for educational purposes. tde securities mentioned are only examples and not recommendations. tde information is based on various secondary sources on tde internet and is subject to change. Please consult witd a financial expert before making investment decisions.

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