Kotak Mutual Fund Files Draft for Rural Opportunities Fund With SEBI

 Kotak Mahindra Mutual Fund has filed draft documents with the Securities and Exchange Board of India (SEBI) to introduce the Kotak Rural Opportunities Fund. It is an open-ended equity scheme that will invest mainly in companies operating in rural and allied sectors.

Investment Objective

The scheme’s goal is to provide long-term capital appreciation by investing in equity and related instruments of businesses connected to rural and allied activities. The document mentions that returns are not assured and will depend on the performance of the underlying investments.

Scheme Details

The New Fund Offer (NFO) will issue units at ₹10 per unit, with further subscriptions and redemptions available at prices based on the fund’s Net Asset Value (NAV). The scheme will remain open-ended, allowing investors to buy or sell units on any business day. The benchmark index for performance comparison will be the Nifty Rural Index (Total Return Index).

Risk and Investment Plans

Both the scheme and its benchmark carry a high-risk rating. Investors will have two plan options: a Direct Plan for those investing directly with the fund and a Regular Plan for investments made through distributors.

The minimum application amount during the NFO will be ₹1,000, while Systematic Investment Plans (SIPs) can start from ₹500. Additional purchases can be made from ₹100 onward. The minimum redemption amount is ₹500 or the remaining account balance, whichever is lower.

Exit Load and Processing Timeline

An exit load of 0.5% will be charged for redemptions or switches made within 90 days of allotment. No exit load will apply after 90 days. The fund will process redemption or repurchase payments within three working days.

Read More: Mutual Funds Increase Cash Allocation by ₹1,139 Crore in September, Reaching ₹1.99 Lakh Crore!

Conclusion

The Kotak Rural Opportunities Fund will focus on companies linked to rural and allied industries. As per the draft, it offers flexibility through open-ended access and standard mutual fund features, with investment risks aligned to equity market conditions. Dates are yet to be disclosed.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.