Kotak Mutual Fund files draft document with Sebi for target maturity fund

Kotak Mutual Fund has filed a draft document with Sebi to launch a target maturity fund. Kotak Crisil-IBX AAA Financial Services Index – Dec 2026 Fund will be an open-ended sectoral target maturity debt index fund investing in constituents of CRISIL-IBX AAA Financial Services Index – Dec 2026 with a moderate interest rate risk and relatively low credit risk.

The investment objective of the scheme will be to generate returns that are commensurate (before fees and expenses) with the performance of CRISILIBX AAA Financial Services Index – Dec 2026 which seeks to track the performance of AAA issuers from the financial services sector maturing near target date of the index.

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The scheme will be benchmarked against CRISIL IBX AAA Financial Services Index – Dec 2026. The scheme will be managed by Abhishek Bisen.

The scheme will offer regular and direct plans both with growth and IDCW options. The exit load will be nil. The minimum application amount will be Rs 100 and any amount thereafter. The maximum total expenses ratio (TER) permissible under Regulation 52 (6) (b) will be upto 1%.

The scheme will allocate 95-100% in replication of securities covered by CRISIL-IBX AAA Financial Services Index – Dec 2026 and 0-5% in cash and debt/money market instruments.

Kotak CRISIL-IBX AAA Financial Services Index– Dec 2026 Fund will be a passively managed target maturity index fund which will employ an investment approach designed to track the performance of CRISIL-IBX AAA Financial Services Index-Dec 2026.

The scheme will largely follow a buy and hold investment strategy in corporate bonds which will be held till maturity unless sold for meeting redemptions/rebalancing requirements.

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The scheme will be suitable for investors who are seeking income over target maturity period and want an open-ended Target Maturity Index Fund tracking CRISIL-IBX AAA Financial Services Index – Dec 2026.

The principal invested in the scheme will be at “moderate” risk according to the riskometer of the scheme.

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