Kotak MF with Sebi to launch 24 months plan - 2 Sep 08

Kotak Mutual Fund has filed an offer document with Securities and Exchange Board of India (SEBI) to launch Kotak 24 M ELN Series 1. It is a close-ended debt scheme. The new fund offer (NFO) price for the scheme is Rs 10 per unit. The investment objective of the scheme is to generate returns through investments in equity linked notes and in debt & money market instruments.

The scheme offers two plan viz. retail, institutional and only regular plan with growth and dividend options. Dividend option further offers dividend payout and dividend reinvestment options. The scheme will invest up to 100% in debt and money market instruments and government secuirities with low to medium risk profile. Investment in securitised debt shall not exceed 50% of the net assets of the scheme. Investment in equity linked notes shall not exceed 80% of the net assets of the scheme. The scheme will not invest in foreign securities. The scheme will charge an entry load of 3.00%. No entry load will be charged for all direct applications received by AMC. Exit load is not applicable since redemption is possible only by selling on the stock exchange. The minimum application amount under retail plan will be Rs 25, 000 and in multiples of Re.1 thereafter and Rs 2 crore and in multiples of Rs 1 there after under institutional plan. The fund seeks to raise Rs 2 crore during NFO period.