Kotak Low Duration Fund is a mutual fund investment scheme which aims at generating income through investment in low duration debt and money market securities. Being a short-term mutual fund investment scheme that maintains a low duration, it presents investors with the perfect opportunity to earn quick money. Essentially an Open Ended Debt Scheme, Kotak Low Duration Fund is ideal for investors who are looking for higher returns as compared to liquid funds and have in place, an investment horizon ranging from three months to one year. Further, investors interested in investing in this fund need to understand that their principal will be at moderate risk. Additionally, the fund is suitable for investors with short-term goals such as purchasing new gadgets, saving for domestic holidays or parking of short-term funds.
Launched on 1st of January, 2013, this fund is managed by seasoned stock-picker, Mr. Deepak Agrawal. A CFA and CA, Mr. Agrawal has been associated with Kotak AMC since the year 2000. Mr. Agarwal took charge of this fund on the 31st of January, 2015. The fund is benchmarked against the CRISIL CRISIL Liquid Fund TR INR. This scheme ranks amongst the top mutual funds in India and is currently ranked fifth in the ‘Ultra Short Term Debt’ category by CRISIL for the quarter ended in December 2017 which remains unchanged from the previous quarter. The minimum investment amount for investing in this fund scheme is Rs. 5,000. If an investor opts to choose the SIP investment route, then the minimum required investment is Rs. 1,000.
Being a short-term fund, this mutual fund investment typically has a lower risk attached to it as compared to other funds. Moreover, with a proven investment process along with a skilled and robust team, it ranks amongst the best mutual funds in India. In order to meet the fund’s investment objectivities, the fund management team tends to invest in a variety of debt and cash instruments while maintaining an optimum balance of yield, safety, and liquidity. The fund management team invests in a portfolio comprising of nearly 80 per cent bonds and 20 per cent cash calls. The top holdings of this fund include esteemed organizations such as Bank of Baroda, Reliance Infrastructure, Vedanta, Manappuram Finance and Sun Pharma Industries. Additionally, besides a well-defined and research-intensive approach, the asset management team strives to make sure the portfolio duration is short, in a bid to facilitate quick returns to its investors.
Individuals looking for quick returns on investments can opt for this scheme as the fund management team tend to invest in short-term securities. Further, if you’re looking forward to earning Fixed Deposit beating returns in the short term for fulfilling short-term goals, this fund is ideal for you. Our financial advisors not only provide transparent advice but can also deliver customized, tailor-made plans, matching your financial circumstances, investment needs, and life goals.