Kotak Mahindra Mutual Fund has launched a New Fund Offering (NFO) for Kotak Overnight Fund. The NFO period begins from January 10, 2019 and will end on January 14, 2019. The biggest plus point of overnight funds are that they are considered low risk as they have the least interest rate risk. These kind of funds are suitable for investors with a short time horizon looking to earn an income. The primary objective of the debt scheme is to generate income through investment in debt and money market instruments having maturity of one business day.
Kotak Overnight Fund will invest up to 100% of its assets in debt and money market securities maturing either on or before the next business day. The scheme may invest up to 40% of its assets in securitised debt.
NIFTY 1D Rate Index will be used as a benchmark for the Kotak Overnight Fund. This index uses Collateralized Borrowing and Lending Obligation (CBLO) overnight rate for the calculation of index values.
|Index Name||1 Year Return||5 Year Return|
|NIFTY 1D Rate Index||6.18%||6.91%|
(Data as on December 31, 2018)
The fund will be managed by Mr. Deepak Agrawal, who has been with the fund house for over 15 years. Mr. Agrawal also manages top-performing debt funds including Kotak Money Market Scheme, Kotak Low Duration Fund, Kotak Liquid Fund. These funds have given returns of 7.84%, 8.19% and 7.44%, respectively over the past 1 year. (The mentioned returns are for the direct variant of the schemes as on January 09, 2019).
Key information about the Kotak Overnight Fund NFO:
|NFO Period||January 10, 2019 – January 14, 2019|
|Minimum Application Amount||Rs. 5,000|
|Benchmark||NIFTY 1D Rate Index|
|Fund Managers||Deepak Agrawal|
*(The NFO details are as per the draft Scheme Information Document filed by Kotak Mutual Fund with SEBI)