Kotak MF Launches Crisil-IBX AAA Financial Services Index-SEP 2027 Fund
Kotak Mutual Fund has launched the Kotak Crisil-IBX AAA Financial Services Index-SEP 2027 Fund. This Scheme is an open-ended sectoral Target Maturity Debt Index Scheme, and it shall invest predominantly in constituents of the CRISIL-IBX AAA Financial Services Index-September 2027. This fund is for those looking for income over a certain target maturity period with relatively high interest rate risk and relatively low credit risk.
The scheme will offer direct and regular plans, each with growth and IDCW (Income Distribution cum Capital Withdrawal) options. A limited-period offer of an exit load of 0.25% will be levied on redemption/switch-out of units if redeemed/switched out within 180 days from the date of allotment. No exit load will be levied for the same beyond 180 days. The minimum redemption amount would be Rs.100 or account balance, whichever is lower. The maximum total expenses ratio (TER) under Regulation 52(6)(b) is capped at up to 1%.
The minimum investment amount required to subscribe to the fund is Rs.100 for both the initial purchase and switch-ins, while the additional investment also starts from Rs.100. For SIP, the minimum installment amount is equally pegged at Rs.100.
It will be an open-ended debt scheme investing predominantly in securities representing the CRISIL-IBX AAA Financial Services Index-Sep 2027, 95-100%, and in cash and other debt or money market instruments, 0-5%.
This scheme is suitable for investors looking for income over a certain target maturity period and seeking an open-ended Target Maturity Index Fund tracking the CRISIL-IBX AAA Financial Services Index-Sep 2027. The scheme’s riskometer states that the principal invested will be subjected to “moderate” risk, hence providing a good balanced alternative for the investors.
