Kotak Transportation & Logistics Fund :Kotak Mahindra Asset Management Company Limited (KMAMC / Kotak Mutual Fund) has launched its new fund offer Kotak Transportation & Logistics Fund. It is an open-ended equity scheme based on transportation and logistics theme. This scheme has opened for public subscription on 25 November 2024, while it will close on 09 December 2024.
NFO: Objective of the fund
Kotak Transportation & Logistics Fund aims to achieve high long term returns by investing primarily in equity and equity related securities of companies engaged in transportation, logistics and related activities. This theme includes businesses involved in transportation infrastructure, logistics services and innovative solutions for efficient and sustainable transportation, as well as financial companies supporting these sectors.
Key Features of the Fund:
· Investment Opportunities: The fund offers investors an opportunity to invest in India’s growing transportation and logistics industry, driven by growing needs and aspirations, and significant opportunities for the rapid growth of the transportation and logistics ecosystem.
Investment Strategy: The fund will adopt a bottom-up approach with the flexibility to invest in companies across different market capitalizations including largecap, midcap and smallcap companies.
Growth prospects: The transportation and logistics industry is poised for rapid growth supported by government initiatives such as Bharatmala, Sagarmala, Dedicated Freight Corridors (DFCs) and multi-modal logistics parks. Technological advancement, shift from unorganized to organized sectors and boom in manufacturing activities further strengthen this theme.
Investment opportunity in fast growing sector
Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company Limited, says that with the launch of Kotak Transportation and Logistics Fund, we provide investors with an opportunity to invest in India’s rapidly changing transportation and logistics theme. This growth is driven by several factors, including an increase in the number of vehicle owners and an increase in per capita GDP, as well as a shift from natural fuel engines such as coal or oil to electric vehicles. Major government initiatives like Bharatmala and Gati Shakti will further expand business opportunities in the logistics sector. With India’s growing manufacturing sector, the transportation and logistics industry is poised for significant expansion.
Why does this sector have a strong future?
Harsh Upadhyay, Chief Investment Officer – Equity & Fund Manager, Kotak Mahindra Asset Management Company Limited, says the transportation and logistics theme will be driven by rising consumption, growth in per capita GDP, growth in e-commerce, auto and auto-ancillary business. Like getting benefits from many factors. The government’s focus on reducing transportation costs by creating an efficient logistics network will not only help in the growth of the sector but will also encourage new companies to enter it. In the last 5 years, the number of listed companies in this sector has increased by 44 percent. As we see The India Story unfold in the coming years, demand for transportation and logistics services is likely to increase significantly.
Who will manage the fund
The fund will be managed by Nalin Bhatt, who has been with Kotak Mahindra AMC since February 2016 and has over 20 years of experience in equity research and fund management. This scheme is opening for public subscription on November 25, 2024 and will close on December 9, 2024. Investors can invest a minimum amount of Rs 100 during the NFO period and any amount in multiples of Re 1 thereafter.
(Note: If investors have doubts about whether this product is suitable for them, they should consult their financial advisor and tax advisor. Kotak Mahindra Asset Management Company Limited (KMAMC) will not comment on any returns/future returns. Past performance may or may not hold in the future and is indicative only.
