The New Fund Offer (NFO) opened on September 8 and will close on September 22.
The scheme will allocate across sector-based mutual fund schemes and can rebalance these investments based on changes in market and economic conditions. This means investors will get exposure to multiple sector-focused strategies through a single fund rather than investing separately in individual sectoral schemes.
The fund will use a research-led approach to select the underlying active and passive sector-oriented schemes, according to Kotak Mutual Fund. The allocation can be changed as the fund house’s assessment of sector opportunities evolves.
The scheme has a minimum initial investment of ₹1,000, with additional investments allowed from ₹500. For SIPs, the minimum investment is ₹500, with at least two instalments required.
Nilesh Shah, managing director at Kotak Mahindra Asset Management Company, said sector leadership tends to change across economic and market cycles, making allocation and rebalancing important for investors using sector-based strategies.
Devender Singhal, fund manager at Kotak Mahindra Asset Management Company, will oversee the scheme.The fund is structured as a fund of funds, so investors will bear the expenses associated with the underlying mutual fund schemes in addition to the expenses of the fund itself, subject to the applicable regulatory limits.
