Kotak MF launches twin advantage fund

Kotak Mahindra Mutual Fund has launched a product - Kotak Twin Advantage Fund-Series II - that combines debt and stock options.

According to an official release by the company today,Kotak Twin Advantage is a close-ended debt scheme with no entry load.
The scheme would invest 75 to 100% in debt and money market instruments and 0 to 25% in equity index options. The investment objective of the scheme is to generate income by investing in debt and money market instruments and to generate capital appreciation by investing in equity index options.

The fund gives investors an opportunity to capture the upside in potential of equity, with risk controlled participation in stock markets.

Nilesh Shah, president of Kotak Mahindra Asset Management Company, said:"As markets are trading at an all time high, valuations as reflected by P/E are higher than their long-term average. But fundamentals continue to be strong. Hence a lot of investors are contemplating to participate in equity markets."

Going by valuations, investors are concerned about the downside protection, but at the same time do not want to miss out the upside potential which is where Kotak Twin Advantage Fund-Series II helps, as it is "an innovative product meant for investors who strongly believe in the potential of equity markets," Shah said.