Date:01/06/2006 URL: http://www.thehindubusinessline.com/2006/06/01/stories/2006060103361700.htm

Back Kotak MF moots new close-ended fund

Our Bureau

Kolkata , May 31

Kotak Mahindra MF has mooted a three-year close-ended fund. It will try to generate income by investing in debt and money market instruments as well as aim at securing growth by taking exposure to stock and index futures.

The fund, christened Kotak Futures Advantage Scheme - Series I, will provide a `liquidity window' on select days (four times - March 25, June 25, September 25 and December 25) of each year till maturity. These will allow redemptions at NAV-based prices (applicable on the respective dates).

The fund, being positioned as a `close-ended balanced (debt and equity futures) scheme' is essentially aimed at those who seek to participate in the growth of equity futures and to provide income by investing in debt and money market securities.

The offer document filed with SEBI has named Mr Sajit Pisharodi and Ms Lakshmi Iyer as the fund managers. The fund will be benchmarked against the Crisil Balanced Fund Index. In order to reduce the risk on capital, it will allocate assets between debt and money market securities, and margin money paid towards generating equity exposure through equity futures, it is mentioned. There will be no investment in options.

The asset allocation will be guided by trends in the equity market.