Kotak Mutual Fund on Thursday announced the launch of the Kotak Multi Asset Active FOF, an open-ended fund of fund scheme investing in units of equity-oriented schemes, debt-oriented schemes and commodity-based schemes.

NFO Alert : Kotak Mutual Fund launches Kotak Multi Asset Active FoF

Synopsis

Kotak Mutual Fund on Thursday announced the launch of the Kotak Multi Asset Active FOF, an open-ended fund of fund scheme investing in units of equity-oriented schemes, debt-oriented schemes and commodity-based schemes.

The new fund offer or NFO of the scheme is open for subscription and will close on April 22.

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Kotak Multi Asset Active FOF aims at optimizing risk adjusted returns through investments in units actively managed equity oriented schemes and debt oriented schemes and commodity-based schemes.

“Building a multi-asset portfolio on your own sounds simple until you try it. You need to track multiple schemes, decide when to rebalance, and every switch triggers a tax event that eats into your compounding. Most investors either over-monitor and overtrade, or they set it and forget it and end up with a lopsided portfolio,” said Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company.

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“The Kotak Multi Asset Active FOF would endeavour to solve this by doing the asset allocation, rebalancing, and scheme selection across Kotak and other AMC schemes within a single fund structure. The investor gets diversification across asset classes - equity, debt, and commodities without the tax drag of doing it themselves,” Shah further said.

Investors can invest a minimum amount of Rs 1,000, and any amount thereafter, during the NFO period.

“Markets are inherently cyclical, and no single asset class outperforms at all times. This fund adopts an active allocation strategy with an aim to balance long term growth and relative stability, aiming to optimise risk-adjusted returns. By combining diversification with disciplined rebalancing, it provides a structured way to navigate volatility and stay invested over the long term,” said Devender Singhal, Fund Manager, Kotak Multi Asset Active FOF.

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This product is suitable for investors who are seeking long term capital growth and want an open ended fund of fund scheme investing in units of equity oriented schemes, debt oriented schemes, and commodity based schemes.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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