Kotak Mahindra Mutual Fund has introduced the Kotak Special Opportunities Fund, an open-ended equity scheme following a sectoral or thematic investment theme. The scheme opened for public subscription on June 10, 2024, and will close on June 24, 2024. It will re-open for continuous sale and repurchase on or before July 08, 2024.
Type of Mutual Fund Scheme
This is an open-ended equity scheme focused on special situations.
Investment Objective
The primary objective of the scheme is to generate long-term capital appreciation by investing predominantly in opportunities arising from special situations. These may include company-specific events or developments, corporate restructuring, government policy changes, regulatory changes, technology-led disruptions, or companies experiencing temporary but unique challenges.
How to Invest
Investors can invest in this scheme with a minimum of ₹100 per plan/option, in multiples of ₹1. There is no upper limit on investment.
Asset Allocation
Under normal circumstances, the scheme’s portfolio will be allocated as follows:
| Instruments | Minimum Allocation | Maximum Allocation | Risk Profile |
|---|---|---|---|
| Equity and Equity Related Securities of special situations theme | 80% | 100% | Very High |
| Equity and Equity Related Securities other than special situations theme and Overseas Mutual Fund 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 |
Similar Mutual Funds in the Market
Two other asset management companies (AMCs) have previously launched similar funds:
| Mutual Fund House | Fund Name | 3-Year Returns (%) |
|---|---|---|
| Aditya Birla Sun Life Mutual Fund | Aditya Birla Sun Life Special Opportunities Fund – Direct Plan | 19.05 |
| Axis Mutual Fund | Axis Special Situations Fund | 16.35 |
| WhiteOak Mutual Fund | WhiteOak Capital Special Opportunities Fund | – |
Source: AMFI (As of June 11, 2024)
Performance Benchmark
The scheme’s performance will be benchmarked against the Nifty 500 TRI (Total Return Index), which represents the top 500 companies by full market capitalization on the NSE, covering over 95% of the free float market capitalization of NSE-listed stocks. This index fairly represents the scheme’s indicative universe.
Entry and Exit Loads
The scheme has no entry load. The exit load structure is as follows:
- For redemption/switch-out of up to 10% of the initial investment amount within 1 year from the date of allotment: Nil.
- For redemption/switch-out of units exceeding the 10% limit within 1 year from the date of allotment: 1%.
- For redemption/switch-out of units on or after 1 year from the date of allotment: Nil.
Fund Managers
Devender Singhal and Arjun Khanna will manage the scheme.
Risk Considerations
The scheme is categorized as “Very High Risk,” according to the Scheme Information Document. It is best suited for investors who understand and are willing to accept that their principal will be subject to very high risk. Investors should consult their financial advisors to determine if this product is suitable for their investment goals.
