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Kotak MNC Fund NFO: Date, Review & NAV

  


Kotak MNC Fund: Complete Overview

Kotak Mahindra Mutual Fund introduces the Kotak MNC Fund. Under Kotak Mahindra Asset Management Company Ltd. (KMAMC) the price is set at Rs.100 and any amount thereafter. This new fund offer is for those looking for Global corporations and is available for subscription from October 07, 2024, to 21 October 2024. This open-ended scheme will follow the MNC theme across diverse Sectors & Geographies. 

“The Kotak MNC Fund aims to leverage the strengths of these Multinational Companies, offering investors access to market leaders across sectors, geographies, and market caps,” Shah said”.-M.D, KMAMC.

Kotak MNC Fund would have a diversified portfolio ranging from large, mid, and small-cap groups, across a variety of sectors, thereby providing investors with exposure to established international players with considerable international business operations.

80 to 100% of the securities and equity-related instruments of Multi-National Companies (MNCs), 0-20% instruments other than MNCs, 0-20% in debt and money market securities, and 0-10% in REITs and InvITs.

This mutual fund scheme reopens for sale and repurchase on or before 31 October 2024 and carries a very high risk.

Kotak MNC Fund Objective

To produce long-term capital growth from a portfolio mostly comprised of securities linked to and invested in the stock of Multinational Companies (MNCs).

For more information about this new NFO Mutual Fund keep reading.

Suitability of Fund

Suitable for such individuals who want an investment in a portfolio mostly made up of securities tied to and owned by MNCs for long-term wealth growth.

Scheme Plan: 

Kotak MNC Fund-Direct

Kotak MNC Fund-Regular

Kotak Mahindra Mutual Fund Details

  • AUM of Rs.3.81 lac crore.

  • More than 25.9 lac investors spanning over 86 branches across 82 cities.

Why MNCs Now?

  • Nifty MNC has outperformed broader indices.

  • Nifty MNC has produced returns with a CAGR of 16.11% whereas Nifty 500 TRI and Nifty 50 TRI with a CAGR of 14.18% and 13.28% respectively.

 

 

Kotak MNC Fund: Investment Strategy

  • Appropriate Top Ideas from Kotak's coverage will be chosen by internal investigation.

  • The ability to purchase in all market cap categories.

  • Fund businesses in a particular industry that use a BMV approach.

  • Selection of reasonably priced companies displaying growth.

 

Indian MNCs Facts

  • HUL brands are used by 9 out of 10 Indian households.

  • Market cap rose by 7x from 2012 to 2024.

  • Market Share of Maruti Suzuki Ltd. is 41% and 59% of other companies.

 

 

Click Here To Stay Updated With The Upcoming NFO.

Fund Overview

Start Date

07 October 2024

End Date

21 October 2024

Allotment Date/Subscription Date/Re-open Date

The scheme reopens on or earlier than 31 October 2024, for continuous sale and repurchase.

VRO Rating

-

Expense Ratio

Nil

Exit Load

1% if more than 10% units are sold within 1 year.

AUM 

Rs.3.81 lac crore.

Lock-in

NA

Stamp Duty

0.005% (From July 1st 2020)

Benchmark(s)

Nifty MNC Index TRI

Min. Investment

Rs.100 and any amount thereafter.

Risk

Very High Risk

Short-Term Capital Gains (STCG)

For less than 1 year, a 20% Tax is applicable.

Long-Term Capital Gains (LTCG)

For more than 1 year, a 12.50% Tax is applicable.

How to Invest in The Scheme After the Closure of The NFO?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then on or before 31 October 2024, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Kotak MNC Fund” or directly with the AMC or simply click the ‘Banner’ below.

 

Asset Allocation (% of Total Assets) of the Scheme's portfolio will be as follows:

Types of Instruments

Minimum Allocation (% of Total Assets)

Maximum Allocation (% of Total Assets)

Securities and equity-related instruments of Multi-National Companies (MNCs)

80

100

Instruments other than equity of MNCs

0

20

Debt and money market securities

0

20

REITs and InvITs.

0

10

 

Peers of Kotak MNC Fund

Scheme

1Y Return

AUM (Rs.) / Fund Size (Rs.)

Aditya Birla Sun Life MNC Fund Regular-Growth

33.93%

4,054.99 Cr

UTI MNC Fund Regular Plan-Growth

33.30%

3,248.95 Cr

ICICI Prudential MNC Fund-Growth

31.29%

1,846.06 Cr

Since this scheme is new, hence no comparable data on its past performance against its peers is available.

 

Risk Factors In Such Funds

  • The Scheme will primarily engage in equities and equity-related instruments of firms that fall under the category of multinational corporations (MNCs), and as such, it will be subject to the risks associated with these organizations.

  • Because the Scheme aims to invest in equities and equity-related instruments of a certain group of companies, some of which may be considered multinational corporations (MNCs), the volatility and/or poor performance of these companies might materially negatively impact the Scheme's performance.

  • Concentration risk will affect the plan because the fund is required to invest in a specific industry or theme. Due to bigger concentrations in their exposures, this could cause the Portfolio NAV to be more volatile than it would be in a diversified portfolio.

  • As a result, if there are any significant redemptions within the scheme, the scheme may also be subject to a comparatively higher liquidity risk.

  • Due to the significant concentration risk associated with being a sectoral or themed scheme, capital risk.

 

Past Performance of MNC Funds

Scheme

NAV (Rs.)

Annualised Return

Risk

Aditya Birla Sun Life MNC Fund Regular-Growth

1,438.54

33.93%

Very High

UTI MNC Fund Regular Plan-Growth

417.67

33.30%

Very High

ICICI Prudential MNC Fund-Growth

29.91

31.29%

Very High

 

Kotak MNC Fund-Fund Managers

  • Mr. Harsha Upadhyaya.

  • Mr. Dhananjay Tikariha.

  • Mr. Abhishek Bisen.

Conclusion

The Kotak MNC Fund gives the scope for investment in multinational companies from a spectrum of sectors and market caps for long-term capital growth. It has very high risks but would utilize the power of established global players. The fund is appropriate for investors who want to invest their money in the MNCs space with a minimum investment amount of Rs.100. Investors should remember that there are sectoral concentration risks with the scheme.

Disclaimer: This NFO analysis is provided solely for informative purposes and should not be considered investment advice. Always conduct research and talk with a financial advisor before investing.



Frequently Asked Questions

+

NAV expands as Net Assets Value.

 

+

You can apply for NFO via online platforms such as AMC’s website, and channel partner website, by filling out an application form, and the mobile apps of Fund House.

It's important to research the AMC performance before investing.

+

It aims for long-term capital growth from a portfolio mostly comprised of securities linked to and invested in the stock of Multinational Companies (MNCs).

 



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