Kotak Mutual Fund has unveiled its latest offering: the Kotak Crisil-IBX AAA Financial Services Index – SEP 2027 Fund. This open-ended sectoral Target Maturity Debt Index Fund is designed to invest in the constituents of the CRISIL-IBX AAA Financial Services Index – Sep 2027.

The new fund offer (NFO) of the scheme will close on September 11, 2024.

It will subsequently reopen for investment on or before September 23, 2024.

Fund details:

Benchmark: CRISIL-IBX AAA Financial Services Index – Sep 2027

Fund Manager: Abhishek Bisen

Interest Rate Risk: Relatively high

Credit Risk: Relatively low

The fund aims to replicate 95-100% of the securities covered by the benchmark index, with a minor allocation of 0-5% in cash and debt/money market instruments.

Investment options and features

Plans available: Direct and Regular plans, both with Growth and IDCW options.

Minimum investment: ₹100 for initial purchase, switch-in, and SIP; ₹100 for additional purchases.

Exit load: 0.25% of applicable NAV for redemption/switch-out within 180 days from the date of allotment; no exit load thereafter.

Minimum redemption: ₹100 or account balance, whichever is lower.

Maximum Total Expenses Ratio (TER): Up to 1%.

Suitability: This fund is tailored for investors seeking income over a target maturity period while tracking the CRISIL-IBX AAA Financial Services Index – Sep 2027.