Kotak Mahindra Launched Kotak Multi-Asset Allocation Fund

Kotak Mahindra mutual fund in December 2010 launched Kotak Multi-Asset Allocation Fund, an open-ended debt fund that will invest in debt, equity and gold. The new fund offer (NFO) opened on 31 December 2010 and will close on 14 January 2010. The fund will invest 75-95 per cent of its corpus in debt and money market instruments, 5-20 per cent in equity and equity-related instruments and 5-20 per cent in gold through gold exchange-traded funds, said a statement from the fund house. Eighty per cent of the fund will be benchmarked to the CRISIL MIP Blended Fund Index and 20 per cent to the price of gold. The minimum application amount will be Rs 10000 and in multiples of Re 1 for purchase and for one paisa for switches thereafter. The continuous offer period will also have a minimum non-SIP initial purchase of Rs 10000 and in multiples of Re 1 for purchase and for one paisa for switches thereafter, with additional purchases at Rs 1000 minimum. The SIP purchases have been fixed at a minimum of Rs 1000.

The scheme is best suited for investors who seek stability of debt, growth potential of equities and diversification of the portfolio by taking exposure to gold in terms of risk-return positioning.