In this article, we will analyse how good is this Kotak Select Focus Fund NFO, whether this Kotak Select Focus Fund offers anything new or unique for the investors and whether the investors should invest in Kotak Select Focus Fund .
Let's begin with some details about Kotak Select Focus Fund.
What are the NFO dates for Kotak Select Focus Fund ?
The NFO for Kotak Select Focus Fund will open on July 22, 2009 and will close on August 20, 2009.
What is so unique about this Kotak Select Focus Fund ?
This fund is expected to focus on certain selected sectors, hence the name Select Focus Fund. But given the capital allocation scheme, which says 65 per cent to 100 per cent of the capital will be invested in equities and equity-linked instruments and up to 35 per cent in debt securities and money market instruments, this does not appear to be that high risk high reward fund.
Investment will be in equity and equity related instruments, foreign securities, government securities & money market instruments.
The Kotak Select Focus Fund will be benchmarked to S&P CNX Nifty.
The fund managers are Krishna Sanghavi and Emmanuel Elango and Abhishek Bisen.
Unfortunately, I could not locate the information regarding the so called "Select Focus Sectors", in which this fund is going to invest. Anyone having that info could please leave it in the comments section. Without that info, it may not be possible to say where the investor's money is going to be betted upon.
Also, there are 3 fund managers. How are they going to coordinate, who will manage what proporation of money, what are their favourite sectors, no info is available on the Kotak Site.
Minimum Investment:
Purchases : Rs. 5000/- and in multiple of Re.1.
Switches : Rs. 5000/- and in multiple of Re. 0.01
Investment Options:
Growth and Dividend (Payout and Reinvestment).
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No Tax Benefit is available in the Kotak Select Focus Fund
The entry load for Kotak Select Focus Fund is as follows:
Entry Load for Kotak Select Focus Fund :
Nil for "all direct" applications received by AMC i.e. on application forms that are not routed through any distributor/ agent/ broker and submitted to AMC office or collection centre/ investment service centre. This benefit shall be available to additional purchases done directly by the investor under the same folio and switch into this scheme from other scheme if such transaction is done directly by the investor
For Amounts < 5 crores : 2.25%
For Amounts >= 5 crores : Nil
Exit Load for Kotak Select Focus Fund:
For exit within 1 year from the date of allotment for amounts < 5 crores: 1.00%
For Amounts >= 5 crores : Nil
Final Thoughts about the Kotak Select Focus Fund?
Overall, this Kotak Select Focus Fund is another fund betting on certain key sectors - we could not locate any info about what are these key sectors.As per the investment objective of this fund which states the following:
The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, generally focused on a few selected sectors.
So overall, it appears to be another new fund offer, which will depend upon the skills of the 3 fund managers about stock selection. Given the 35% of lower allocation to debt based instruments, this fund does not appear to be that aggressive
2 comments:
SIP OPTION AVAILABLE PLEASE LET ME KNOW
yes SIP option is available in this fund. As far as sectors are concerned, they are not going to remain fixed within the portfolio, the fund managers will keep changing their portfolios as per the performance of the sectors in Nifty. The money will be invested in 50% sectors of the nifty i.e. in around 6-8 sectors with a minimum investment in 3 sectors. The maximum amount of money which can be allocated in a sector is 30% and thus it becomes a no mandate fund unlike kotak opportunity. To increase the investment in one sector till next 25 % of that 30% already allocated would require a permission to be taken by the higher authorities. Its a 50% large cap and 50% mid cap fund.
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