 "Thematic funds galore: Kotak MF launches Transportation and Logistics Fund")
Kotak Mahindra Asset Management Company has launched a thematic scheme focused on the Transportation & Logistics theme. The New Fund Offer (NFO) opened for subscription on November 25, 2024, and closes on December 9, 2024.
The Kotak Transportation & Logistics Fund aims to generate long-term capital growth by investing predominantly in equity and equity-related securities of companies engaged in transportation, logistics, and related activities. This theme encompasses businesses involved in transportation infrastructure, logistics services, innovative solutions for efficient and sustainable transportation, and financial companies supporting these sectors.
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.
Investors can invest a minimum amount of Rs 100 and any amount thereafter during the NFO period.
Key Highlights of the Fund:
• Investment Opportunity: The fund offers investors a chance to invest in India's burgeoning Transportation & Logistics industries, driven by rising aspirations, optimization of the transport and logistics ecosystem, and significant growth opportunities.
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• Investment Approach: The fund will adopt a bottom-up approach, with the flexibility to invest across various market capitalizations, including large, mid, and small-cap companies.
• Growth Potential: The transportation and logistics industry is poised for exponential growth, supported by government initiatives like Bharatmala, Sagarmala, Dedicated Freight Corridors (DFCs), and Multi-Modal Logistics Parks. Technological advancements, the shift from unorganized to organized sectors, and a push in manufacturing activities further bolster this theme.
“With the launch of the Kotak Transportation & Logistics Fund, we provide investors an opportunity to participate in India's rapidly transforming transportation and logistics theme. This growth is fuelled by rising vehicle ownership, the shift from fossil fuel engines to electric vehicles, and increasing per capita GDP. Major government initiatives like Bharatmala and GatiShakti will enhance efficiency and expand business opportunities in the logistics Industries," said Nilesh Shah, Managing Director, KMAMC.
“The transportation and logistics theme stands to benefit from multiple tailwinds, including growing consumption, increasing per capita GDP, and the growth of e-commerce, auto, and auto-ancillary businesses. The government's focus on reducing transportation costs by creating an efficient logistics network will not only aid sector growth but also attract new players. Over the last five years, there has been a 44% increase in the number of listed companies in this space. Demand for transportation and logistics services is expected to grow significantly as the India Story unfolds in the coming years," said Upadhyaya, Chief Investment Officer - Equity & Fund Manager, KMAMC.
(Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd)