Updated: Nov 25, 2021
Kotak Mutual Fund has launched a new fund offer, Kotak Multicap Fund which will be open for subscription from 8th September 2021 to 22nd September. It is an open-ended fund that invests in large-cap, mid-cap and small cap stocks. SEBI had earlier revised the guidelines, where it had indicated that multicap funds should invest a minimum of 25% each in large cap, midcap and small cap stocks.
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
There is no assurance that the investment objective of the Scheme will be achieved.
To achieve the investment objective, the scheme will invest in equity and equity linked instruments across market capitalization viz. Large cap, mid cap and small companies as defined under SEBI circular. The Minimum investment in equity & equity related instruments -75% of total assets in the following manner:
Minimum investment in equity & equity related instruments of large cap companies - 25% of total assets.
Minimum investment in equity & equity related instruments of mid cap companies - 25% of total assets.
Minimum investment in equity & equity related instruments of small cap companies - 25% of total assets.
Currently the large cap companies are the 1st-100th, mid cap companies are 101st - 250th and small cap companies are 251st company onwards in terms of full market capitalisation.
The performance of the Scheme is measured against Nifty 500 Multicap 50:25:25 Total Returns Index
The asset allocation under the Scheme
The asset allocation under the Scheme, under normal circumstances, is as follows:
Equity & equity related securities*
75% - 100%
Medium to High
Debt & Money market instruments#
Units issued by REITs & InvITs
Medium to High
*Minimum investment in Equity & Equity related instruments of large Cap companies – 25% of total assets
Minimum investment in Equity & Equity related instruments of mid cap companies – 25% of total assets
Minimum investment in Equity & Equity related instruments of small cap companies – 25% of total assets.
#Debt instruments shall be deemed to include securitised debts (excluding foreign securitised debt) and investment in securitised debts may be up to 50% of Debt and Money Market instruments. This will also include margin money for derivative transactions.
Scheme reopens for continuous purchase/sale
Within 5 days from closure date
Rs 1,000 for 6 months
NAV of the fund
Rs 10 during NFO period
Within 1 year – beyond 10% of investments – 1% exit load
After 1 year – Nil
Nifty 500 Multicap 50:25:25 TRI
Performance of existing Multicap Funds
Here is the performance of some existing flexicap funds. This would give an idea to investors on how these funds have performed in medium to long term. Returns indicated here are annualized returns.