Kotak Asset Allocator Fund Growth

About Kotak Asset Allocator Fund

The Kotak Asset Allocator Fund is an open-ended equity fund of funds scheme. It seeks to provide long-term capital appreciation through investments predominantly in open-ended diversified equity schemes and debt schemes of Kotak Mahindra Mutual Fund.

Pros & Cons of Kotak Asset Allocator Fund

1. The scheme follows a dynamic asset allocation strategy to select between the specified equity and debt mutual fund schemes.
2. The equity and debt allocation are based on a combination of 3 criteria – PE Ratio of CNX Nifty, Yield Gap Analysis, and Momentum of the CNX Nifty.
3. As on September 30, 2018, this scheme is not ranked under CRISIL’s Fund of Funds category. Further, it has generated returns of 15.28% per year over the last 10 years (as on December 31, 2018.

Fund Information and Statistics of Kotak Asset Allocator Fund

i) Inception / Launch date

The scheme was launched on 09 August 2004 by Kotak Mahindra Mutual Fund.

ii) Risk level

The scheme is suitable for investors seeking long-term capital growth and invests in open-ended diversified equity schemes and debt schemes of Kotak Mahindra Mutual Fund. It has a moderately-high risk level.

iii) Redemption

The minimum amount of redemption is Rs. 1,000 or 100 units. Further, the Mutual Fund will dispatch the redemption proceeds within 10 business days of the receipt of a valid redemption request at the official points of acceptance.

iv) Fund Manager

Mr. Deepak Gupta (since February 24, 2011) is the Fund Manager of Kotak Asset Allocator Fund.

v) Entry / Exit load

There is no entry load in this scheme. The exit load structure is as follows: 1. If the units purchased or switched in are redeemed or switched out after one year from the date of allotment, then the exit load = NIL 2. If the units purchased or switched in are redeemed or switched out within one year from the date of allotment, then the exit load = 1% of the NAV

Further, if the broker code is mentioned, then exit load will be applicable in case of a switch from Regular to a Direct plan too.

Tax benefits of investing in Kotak Asset Allocator Fund

The following taxes are applicable to income arising from investing in this scheme: 1. STCG tax (units are held for a period of less than 12 months) – as per the rates applicable to the investor under the Income Tax Laws. 2. LTCG tax (units are held for a period of more than 12 months) – 20% with indexation benefits.

About Kotak Mutual Fund

The fund house is managed by Kotak Mahindra Asset Management Company Limited (the “AMC”). It started operations in December 1998. The fund house offers schemes catering to investors with different risk appetite and was the first fund house in India to launch a dedicated gilt scheme. The AMC manages assets worth more than Rs 1.25 lakh crore.