NFO alert: Kotak Mutual Fund launches Kotak Special Opportunities Fund

Kotak Mahindra Asset Management Company has recently announced the launch of Kotak Special Opportunities Fund, which is an open-ended equity scheme following a special situations theme. The scheme opened on June 10, 2024 and will close on June 24, 2024. 

The fund will offer investors with an opportunity to invest in the special situations theme. In a bid to sail through the ups and downs of an economy, industry or company, Kotak Special Opportunities Fund aims to capitalise these opportunities.

Main objective of investment 

The main objective of Kotak Special Opportunities Fund is to generate long-term capital growth through investing in equity and equity-related securities of companies benefitting from different special situations such as company-specific events, corporate restructuring, government policy change, regulatory changes, technology-led disruption or companies going through temporary but unique challenges, etc. 

The fund would look for such opportunities across market capitalisation. Since such opportunities can arise across sectors, the portfolio is likely to be diversified. 

The fund will be managed by Mr. Devender Singhal - Fund Manager with more than 22 years of industry experience in Indian Equity Markets. He has been working with Kotak AMC for more than 15 years and has been a consumer, auto and media analyst in the past.

Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company, said: "India as a growing market is ever changing and dynamic leading to multiple special opportunities. Like, launch of PLI and the world looking for China+1 created an opportunity for electronics manufacturing sector in India. A similar opportunity can also arise in a company which sees a management change, aiming to improve its prospect of future growth.

"These opportunities presented by Special Situations can arise in companies of any size, whether they are large cap, mid cap, or small cap. Our fund is not limited by any market cap or sector. This flexibility allows us to seek out and invest in the opportunities wherever they may be,” Shah added.

Devender Singhal, Fund Manager, KMAMC, said: “A company’s path can be impacted by multiple events like policy changes, Mergers and Acquisitions, Industry Consolidations, Management changes, etc. For instance, the cement sector feeling the effects of industry consolidation or RERA’s impact on the real estate sector. Kotak Special Opportunities fund focuses on looking for such special situations. Special Situations demand professional analysis to assess the impact of uncertain events and capitalise on them.”

Investment plan

Investors can invest under the scheme with a minimum investment of Rs 100 per plan/option and in multiples of Re 1. There is no upper limit for investment.

	Indicative allocations (% of total assets)
Instruments	Minimum	Maximum	Risk Profile
Equity and Equity Related Securities of special situations theme	80%	100%	Very High
Equity and Equity Related Securities Other than of special situations theme and Overseas Mutual Funds schemes/Foreign Securities	0%	20%	Very High
Debt and Money Market Securities	0%	20%	Low to Moderate
Units of REITs & InvITs	0%	10%	Very High

    

 

Biraja Tripathy, Head Products, KMAMC said “Broad thematic funds such as Kotak Special opportunities Fund can be part of the portfolio of investors as these are generally diversified across sectors. Unlike sectoral funds which focus on opportunities in a single sector thereby warranting only a tactical allocation in investors portfolio, these funds can see strategic allocation because of their broad-based nature.”

Investors should consult their financial experts and tax advisor if in doubt about whether the product is suitable to them. Kotak Mahindra Asset Management Company Limited (KAMAMC) is not guaranteeing or promising any returns/ futuristic returns.