NFO Analysis: Kotak Manufacture in India Fund

Kotak Manufacture in India Fund open-ended scheme that seeks to create diversified portfolio companies that follow the manufacturing theme.

Kotak Mutual Fund offers various types of schemes such as equity-oriented, debt-oriented, hybrid, Fund of Funds, ETFs, FMPs and Index funds. The average AUM of Kotak Mahindra Asset Management Company is Rs 2,86,813.30 crore as of December 2021, which is launching the sectoral/thematic fund namely Kotak Manufacture in India Fund. This is an open-ended scheme that seeks to create diversified portfolio companies that follow the manufacturing theme.

Subscription Dates: The NFO was launched on February 01, 2022, and will close on February 15, 2022.

Objective of the Scheme: The scheme shall strive to generate capital appreciation by investing in a diversified portfolio of companies that follow the manufacturing theme.

Investment Strategy: The scheme will be investing in equity and equity-related instruments of companies that are part of manufacturing theme and engage in activities such as directly engaged in manufacturing activities, benefit from the Government’s Manufacture in India initiatives, replacing India’s imports by manufacturing in India. Export goods manufactured in India have the potential to increase employment in the country, invest in new manufacturing plants/facilities, aid manufacturing of new-age technology solutions.

Asset Allocation:

Benchmark: Nifty India Manufacturing Total Return Index

Fund Manager: Harish Krishnan (Equity) and Abhishek Bisen (Debt).

This fund will be suitable for investors with high-risk appetites as the fund manager of this scheme will allocate the capital towards equity and equity-related instruments and a very small proportion towards debt and money market instruments. Investors who are willing to diversify their portfolios and want the exposure of manufacturing companies can consider investing in this fund. As in Union Budget 2022, new reforms are announced, there are good days for manufacturing companies. NFO is not the best option to invest in as there is no historical data available to track the performance unless it is offering a new theme. As this is a new theme that the fund is offering, an investor can invest in this theme. However, it’s better to invest in schemes that already have historical data or should wait till the fund performs.