Upcoming NFO: Kotak Mahindra Mutual Fund Files Draft for Balanced Hybrid Fund

Kotak Mahindra Mutual Fund has filed the draft Scheme Information Document (SID) with SEBI for the proposed Kotak Balanced Hybrid Fund. The scheme has been classified as an open-ended balanced hybrid fund.  

According to the filing, it will invest in both equity and debt instruments with the aim of generating long-term capital appreciation. The document also notes that achieving the investment objective is not assured.  

Allocation Between Equity and Debt 

The proposed fund will invest 40% to 60% of its assets in equity and equity-related securities, while the remaining 40% to 60% will be invested in debt and money market instruments. Arbitrage positions will not be part of the portfolio.  

The benchmark selected for the scheme is the NIFTY 50 Hybrid Composite Debt 50:50 Index. The scheme has been assigned a 'Very High' risk level under the Risk-o-meter.  

Investment Scope 

The draft document permits investments across listed shares, government securities, corporate bonds, money market instruments, securitised debt, REITs, InvITs and overseas securities.  

Overseas investments may account for up to 35% of the scheme's net assets, while exposure to securitised debt has been capped at 20% of debt assets. The fund may also use derivatives, securities lending and short selling within the limits prescribed under SEBI regulations.  

If the portfolio moves outside the prescribed allocation because of market movements, it will normally be rebalanced within 30 business days.  

Investment and Redemption Terms 

Units will be offered at ₹10 each during the New Fund Offer (NFO), with the dates yet to be announced. The minimum investment amount has been fixed at ₹1,000, while SIP investments will start from ₹500, subject to at least two instalments.  

The scheme will be available under Direct and Regular plans with Growth and IDCW options. A 1% exit load will apply if units are redeemed or switched within 90 days of allotment. No exit load will be charged after that period.  

Read More: NFO Alert: HDFC Mutual Fund Launches Nifty Metal ETF FoF! 

Conclusion 

The proposed Kotak Balanced Hybrid Fund has entered the regulatory approval process with the filing of draft papers. Further details, including the New Fund Offer schedule, will be announced after the approval process is completed. 

For daily market updates and regular stock market news in Hindi, stay tuned to Angel One's share market news in Hindi. 

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.