Kotak MF files draft for Kotak Quality Overseas Equity Omni FoF: 12 things to know

Key details about Kotak Quality Overseas Equity Omni FoF

1. The fund aims to generate long-term capital appreciation by investing primarily in global funds that focus on companies exhibiting strong quality characteristics such as robust balance sheets, earnings stability and high return ratios.

2. Asset allocation pattern: 95–100% in units of overseas equity-oriented mutual fund schemes/ETFs based on the Quality theme.

0–5% in debt and money market instruments, and units of liquid and overnight schemes or liquid ETFs for liquidity and redemption needs.

3. At least 95% of total assets will be invested in underlying overseas funds.

4. Overseas investments are subject to a maximum limit of $1 billion per mutual fund, within the overall industry cap of $7 billion. The scheme may not be able to fully utilise the $1 billion limit if the industry-wide limit is exhausted.

5. The cumulative gross exposure through mutual fund units, ETFs, debt and money market securities will not exceed 100% of the scheme’s net assets.

6. The scheme will not invest in:

• Derivatives

• Short selling

• Securities lending and borrowing

• Credit default swaps

• Securitised debt

• Debt instruments with structured obligations or credit enhancements

• Corporate bond repo/reverse repo

• Units of InvITs

7. The scheme will be actively managed and will seek to optimise risk-adjusted returns by allocating predominantly to global Quality-focused equity funds. Debt and money market instruments will be used primarily for liquidity management.

8. Plans available

• Direct Plan (for investors investing directly with the fund house)

• Regular Plan (for investments routed through distributors)

9. Options under each plan

Growth

Income Distribution cum Capital Withdrawal (IDCW) — Payout and Reinvestment options

10. Minimum investment amount

• ₹1,000 for lump sum investments

• ₹500 for SIP, subject to a minimum of two instalments

11. The scheme will be benchmarked against the MSCI World Index (TRI).

12. Fund Manager Arjun Khanna will manage the equity portion, while Abhishek Bisen will oversee investments in debt-oriented schemes and money market instruments.