Kotak Mutual Fund launches Multi Asset Active Fund of Fund

Kotak Mutual Fund on Thursday announced the launch of Kotak Multi Asset Active Fund of Fund (FoF), an asset allocation product which will dynamically invest into equity-oriented schemes, debt-oriented schemes and commodity-based schemes.

The scheme will invest 10-80 per cent of the corpus into equity 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, said the scheme solves the complexity of allocating across 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 said.  (Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd)