NFO alert: Kotak Mutual Fund launches a new Long Duration Fund; details inside!

NFO alert: Kotak Mutual Fund launches a new Long Duration Fund; details inside!

Prajwal Wakhare
/ Categories: Trending, Mutual Fund, MF NFO

In the following article we shed light on the NFOs, their objectives, fund allocation, fund managers and peer performance.

Kotak Long Duration Fund (NFO), launched by Kotak Mahindra Mutual Fund, aims to generate income and potentially appreciate capital through investments in debt and money market instruments. This open-ended long-duration Debt Fund has a minimum investment of Rs 100 and began accepting subscriptions on February 28, 2024, with an offer closure date of March 6, 2024. There are no additional loads associated with this scheme.

Investment Objective

To generate income/capital appreciation through investments in debt and money market instruments. There is no assurance that the investment objective of the Scheme will be achieved.

Kotak Long Duration Fund’s NFO is suitable for investors who are seeking long term wealth creation and to generate income and capital appreciation through 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 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 that primarily invests in government and corporate bonds with maturities exceeding seven years. These funds aim to generate returns through both interest income earned on the bonds and capital appreciation from the bonds' value in the 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

Scheme Name

AUM (Crore)

Expense Ratio (%)

 
 

Bandhan Bond Income Reg Gr

493.59

1.99

 

ICICI Pru Long Term Bond Gr

691.98

0.9

 

ABSL Long Duration Fund Reg Gr

90.13

1.08

 

Axis Long Duration Fund Reg Gr

193.58

0.75

 

Nippon India Nivesh Lakshya Gr

6984.29

0.64

 

UTI Long Duration Fund Reg Gr

71.97

1.51

 

SBI Long Duration Fund Reg Gr

1207.37

0.68

 

HDFC Long Duration Debt Fund Gr

1738.26

0.6

 

 

Disclaimer: The article is for informational purposes only and not investment advice.

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