Kotak Mutual Fund launches Multi Asset Active Fund of Fund | Mutual Funds

Kotak Mutual Fund on Thursday introduced the launch of Kotak Multi Asset Active Fund of Fund (FoF), an asset allocation product which is able to dynamically make investments into equity-oriented schemes, debt-oriented schemes and commodity-based schemes.

The scheme will make investments 10-80 per cent of the corpus into fairness and hybrid schemes, 10-60 per cent into debt funds, and 10-30 per cent into commodity ETFs. Nilesh Shah, Managing Director at Kotak Mahindra AMC, stated the scheme solves the complexity of allocating throughout schemes.  

“Most investors either over-monitor and overtrade, or they set it and forget it and end up with a lopsided portfolio. The FoF would endeavour to solve this by doing the asset allocation, rebalancing, and scheme selection across Kotak and other AMC schemes within a single fund structure,” he stated.  (Disclosure: Entities managed by the Kotak household have a big holding in Business Standard Pvt Ltd)