Kotak Mahindra eyes Rs 400 cr from FoF

Kotak Mahindra Asset Management Company announced the launch of Kotak Equity Fund of Fund (FoF), a scheme that will invest in other mutual fund schemes to diversify risk.

Ajay Bagga, CEO, Kotak MF, said at the launch: "The portfolio of the scheme would comprise investment up to 75 per cent in diversified large-cap schemes and up to 25 per cent in diversified aggressive schemes of various Indian mutual funds."

The group has a target to mobilise around Rs 250-400 crore from its first equity FOF, which would remain open for subscription from July 1 to July 19, 2004, Bagga added.

Kotak Equity FOF would invest in schemes of fund houses whose assets under management were in excess of Rs 5,000 crore, with Rs 500 crore under equity schemes.

"The target audience of the FOF is the retail investor, who is being offered the best in class equity schemes in the Indian mutual fund industry in one basket. Kotak Equity FOF will invest only in underlying schemes with no entry or exit load, or where loads are waived. Hence rebalancing the portfolio will not attract fresh loads to take away from investors' investible corpus. This may not be the case when investors invest and rebalance their portfolios directly," Bagga added.