NFO: Kotak Special Opportunities Fund launched, you can start SIP from Rs 100

Kotak Special Opportunities Fund : Kotak Mahindra Asset Management Company Limited (KMAMC) has launched Kotak Special Opportunities Fund today on June 10, 2024. It is an open-ended equity scheme based on the theme of special situations. The scheme is opening for subscription on June 10, 2024 and will close on June 24, 2024. The specialty of this fund is that investors will get an opportunity to invest on the theme of special situations. Any economy, industry or company may face many challenges from time to time. These challenges give rise to uncertainties and also give rise to many opportunities. The goal of Kotak Special Opportunities Fund is to take advantage of these opportunities.

This scheme is opening for public subscription on June 10, 2024 and will close on June 24, 2024. In this scheme, investors can invest a minimum of Rs 100 and thereafter any amount (Mutual Fund SIP).

NFO : Focus on diversification in portfolio

As with Kotak Special Opportunities Fund, KMAMC aims to generate long-term capital appreciation by investing in equity and equity-related securities of companies that are likely to benefit from various special situations such as company specific events, corporate restructuring, government policy changes, regulatory changes, technology disruptions or temporary but unique challenges. The fund will look for such opportunities across market capitalisation. Since such opportunities may arise across sectors, diversification of the portfolio is expected.

Investing in companies of every market cap

Nilesh Shah, Managing Director, KMAMC, said that as a growing market, India is constantly changing and dynamic, creating many special opportunities. For example, the launch of PLI and the world looking for China+1 created an opportunity for the electronics manufacturing sector in India. A similar opportunity can also arise in a company that sees management changes aimed at improving future growth prospects.

These opportunities arising out of special conditions can be in companies of any size, be it large cap, mid cap or small cap. The fund is not restricted to any market cap or sector. This flexibility allows one to explore and invest in opportunities wherever they are. The fund will be managed by Devender Singhal – Fund Manager who has over 22 years of industry experience in the Indian equity markets.

Strategic Allocation

Devendra Singhal, Fund Manager, KMAMC, said that a company’s journey can be affected by several events such as policy changes, mergers and acquisitions, industry consolidation, management changes. For example, the cement sector is feeling the impact of industry consolidation or RERA on real estate. Kotak Special Opportunities Fund focuses on looking for such special situations. Special situations require professional analysis to assess the impact of uncertain events and benefit from them.

Biraja Tripathi, Head Products, KMAMC said that Kotak Special Opportunities Fund Broad thematic funds can be part of investors’ portfolios as they are generally diversified across sectors. Sectoral funds focus on opportunities in a single sector, which is likely to result in only a tactical allocation in investors’ portfolios. Hence, unlike sectoral funds, these funds can look at strategic allocation as they are broad-based in nature.

(Disclaimer: Here we have provided information about the launch of the fund. If investors have any doubts about whether the product is suitable for them, they should consult their financial experts and tax consultants. Financial Express has not given any information about the guarantee of returns/future returns.)