Kotak Mutual Fund has announced the launch of its Smart Facility for Systematic Investment Plan (SIP), Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP) investors. The new facility available for all open-ended equity schemes, equity index funds and Kotak equity hybrid funds, will calculate the instalment for SIP and STP based on the market valuation. When the valuations are expensive, the investment amount will be half of the base SIP amount.
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In contrast, the investment will be double the base SIP amount when the valuations are cheap. The facility will also allow the investors to select the minimum and maximum level of their SIP amount.
The valuation is calculated on the basis of the net equity allocation of the Kotak Balanced Advantage Fund, which uses a combination of the adjusted trailing price to earnings ratio, trends along with sentiment data. Simply put, the Smart SWP will allow the investors to redeem a higher amount when the equity valuations are expensive and a lower amount when valuations are cheaper.
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Investors can also opt for the Smart option through the Systematic Transfer Plan (STP) route. This facility is also available to be availed through the Systematic Withdrawal Plan (SWP).
“The Kotak Mutual Fund’s latest offering, the Smart Facility will help investors who are looking for an equity valuation-based investment approach to invest for their long-term goals,” said Nilesh Shah, Group President & MD, Kotak Mahindra Asset Management Company.
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Calling it a “simple yet powerful tool for systematic investment,” Shah added that the Smart facility will also use the market volatility in favour of the investors.
“Equity markets will continue to be volatile. Smartness is in using this volatility in our favour. This is a very simple yet powerful tool for systematic investments which is easy to understand and even easier to invest in. I am sure investors in the coming days will benefit from this offering,” he said
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Kotak Mutual Funds offer schemes catering to investors with varied risk and return profiles. The company’s assets are managed by Kotak Mahindra Asset Management Company Limited (KMAMC), wholly owned by Kotak Mahindra Bank. With investor folios of over 43.8 lakh and a presence in more than 80 cities in the country, KMAMC is among the largest players in the segment.
