Kotak MF resumes Subscription of Units in Kotak Global Emerging Market Fund
Kotak Mutual Fund has announced the reopening of subscriptions for its Kotak Global Emerging Market Fund, an open-ended fund-of-fund scheme that invests in international mutual fund schemes targeting global emerging markets.
Presently, investors are allowed to subscribe to the fund in various ways, such as through lump-sum investments, fresh SIPs, STPs and DTPs.
The overall overseas investment limit shall be closely watched by the fund house in full compliance with the direction of SEBI.
Kotak Mutual Fund has imposed a cap on its overseas investments to bring them in line with the SEBI regulation, thereby freezing them at levels recorded as of February 1, 2022.
This is following a temporary suspension of the Kotak Global Emerging Market Fund’s transactions, which commenced on February 2, 2022. The motive, at the time, was not to exceed the industry-wide overseas investment limits laid down by the RBI.
SEBI allowed mutual fund schemes to resume overseas investments, with effect from June 17, 2022, provided they are within the available limits as of February 1, 2022.
On reopening, the subscriptions also would be kept within the prescribed limits by Kotak Mutual Fund.
What does this mean for Investors?
Investors in Kotak Global Emerging Market Fund can re-enter the market or increase their investments in the scheme with the reopened subscription options.
However, Kotak Mutual Fund has warned that it might have to suspend subscriptions again if the overseas investment limit reaches the threshold prescribed earlier.
It has also informed the investors that all the other terms and conditions as mentioned in the SAI, SID and KIM remain unchanged.
