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Kotak Multicap Fund – NFO issue Details and Risk Factors Kotak mutual funds has launched a new fund offer, Kotak Multicap Fund that would open for subscription on 8th September 2021. It’s an open-ended fund that invests in large cap, mid-cap, and smallcap stocks. SEBI has changed the guidelines earlier where it indicated that multicap funds should invest minimum 25% each in largecap, midcap and smallcap stocks. Many multicap funds have converted into flexicap mutual funds after this guideline has come. Earlier ABSL has come up with multicap fund after this change and now Kotak has launched this multicap fund. Should you invest in Kotak Multicap NFO? Let me review this multicap fund along with risk factors. Kotak Multicap Fund – NFO Issue Details Kotak Multicap Fund would open for subscription on Wednesday, 8th September 2021 and closes on Wednesday, 22nd September 2021. Since this is an open-ended mutual fund scheme, it would again open after 5 days from initial NFO closure date. Here are the NFO issue details. Here are the NFO issue details Scheme Opens 08-Sep-21 Scheme Closes 22-Sep-21 Scheme reopens for continuous purchase/sale Within 5 days from closure date Minimum Lumpsum Rs 5,000 Minimum SIP Rs 1,000 for 6 months NAV of the fund Rs 10 during NFO period Entry Load Nil Exit Load Within 1 year – beyond 10% of investments – 1% exit load After 1 year – Nil Risk Very High Risk Benchmark Nifty 500 Multicap 50:25:25 TRI Final SID is not yet available. What is the investment objective of Kotak Multicap Fund NFO? The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities across market capitalization. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved. What is the allocation pattern in this mutual fund scheme? This fund investment pattern is as follows: Type Of Instruments Min % Max % Risk Profile Equity & equity related securities – Largecap 25% 100% Medium to High Equity & equity related securities – Midcap 25% Medium to High Equity & equity related securities – Smallcap 25% Medium to High Debt and Money Market Securities 0% 25% Low to Medium Units issued by REITs and InvITs 0% 10% Medium to High Why to invest in Kotak Multicap Fund NFO? Here are a few reasons to invest in this fund. 1) This fund would invest a minimum of 25% each in large cap, Midcap and smallcap which can help investors for portfolio diversification. 2) While investment in large cap stocks would provide stability, investment in midcap and smallcap segment would provide opportunity to invest in multibagger stocks that can generate high returns. Check recent midcap mutual fund rally and small cap mutual fund outstanding performance. Should you invest in Kotak Multicap Fund NFO? Kotak Mutual Fund Multicap Fund invests a minimum of 25% each in large cap, midcap and smallcap stocks. The definition of multicap funds was different 9 months back. We do not know how this new allocation would benefit investors in short, medium and long term. High risk investors can invest in this scheme for medium to long term perspective. If you don’t want to test these new multicap funds, you can opt for some of the Best Flexicap Mutual Funds in 2021. 2
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