MUMBAI: Kotak Mutual Fund is the latest fund house to launch a gold fund of fund called Kotak Gold Fund, an open ended scheme.
NFO Period: March 4, 2011 to March 18, 2011
Investment Objective: The fund seeks to generate returns by investing in units of Kotak Gold Exchange Traded Fund.
Asset Allocation: The scheme would allocate 95-100 per cent of assets in units of Kotak Gold ETF with low risk profile. It would further allocate up to five per cent of assets in reverse repo and/or CBLO and/or short-term fixed deposits and /or money market instruments and/or schemes which invest predominantly in the money market securities or liquid with low risk profile.
Benchmark Index: Price of physical gold
Fund Manager: Abhishek Bisen, Vice President - Debt.
Target Investors: The fund is targeted especially at retail investors.
Distribution Strategy: The fund will be open in 80 cities. “With gold being an important part of asset allocation, distributors find it difficult to sell gold ETFs because they do not have stock exchange membership,” says Sandesh Kirkire, CEO, Kotak AMC.
Annual Expense: 0.75 per cent
Empanelled IFAs: 20,000. Active: 8,000
Expenses/Exit Load: The scheme will charge 2 per cent as exit load if units are redeemed within 6 months from the date of allotment and 1 per cent as exit load if units are redeemed after six months but on or before one year from the date of allotment.
Registrar: CAMS
