Kotak MF Launches 18 Months Plan

Kotak Mutual Fund has launched a new close ended debt fund named as Kotak FMP 18M Series 2. The New Fund Offer (NFO) price for the scheme is Rs. 10 per unit. The new issue is open for subscription from November 5, 2009 and close subscription on November 18, 2009.

The scheme's investment objective is to generate regular returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk.

The scheme offers growth as well as dividend payout option. The scheme's maturity is 18 months from the allotment date of units. The fund would invest up-to 100% of asset in debt & money market instruments and government securities with low to medium risk profile. Moreover, it would also invest up-to 100% in money market instruments with medium to high risk profile. However, the investments in corporate bonds and other debt instruments would be up-to 100% with medium to high risk profile.