Kotak Special Opportunities Fund NFO: Review, Date & NAV

Introduction

The Indian mutual fund industry has progressed by leaps and bounds over the last few decades. Many investors then started in mutual funds in the '60s and '70s have now become market leaders in their domain.

Are you one of those who dream of investing in mutual funds and are ready to create your leadership in this industry? Or do you have plans to invest your finances to make it big?

Here we are again with an exciting and impactful blog that could help you in making financial investments. So, this time we have come up with the business idea of ‘Kotak Special Opportunities Fund’.

In this blog, you will know what they have in the fund scheme and how this will help you in making your decision for investment.

 

Everything You Need to Know About Kotak Special Opportunities Fund NFO

If you’re an investor who is seeking to capitalize on unique market conditions, and an investor with exceptionally high-risk hunger and willing to have a strategic allocation to overall equity portfolio wants to invest in a long-term capital horizon i.e. 5 years and above then your search could end with Kotak Special Opportunities Fund.

Kotak Special Opportunities Fund is an open-ended equity scheme following a special situations theme aiming at long-term capital appreciation launched by Kotak Mutual Fund on June 10th, 2024. 

Kotak Mutual Fund started its tasks in December 1998. It was the principal AMC to offer a committed overlaid fund for funding exclusively in Government securities. Kotak Mahindra Asset Management Company Limited (KMAMC) a public limited company is the asset manager of Kotak Mahindra Mutual Fund (KMMF).  KMAMC having 86 branches is spread over 82 cities in India with 25.9 lakh investors. 

The Kotak Special Opportunities Fund scheme is set to invest overwhelmingly in opportunities presented by Special Situations such as Company Specific Events/Developments, Corporate Restructuring, Government Policy changes and/or Regulatory changes, Technology Disruption/ Innovation, or companies going through temporary but unique challenges and similar instances. The scheme will invest in companies spanning whole market capitalization and a bottom-up approach to stock-picking and choose companies that are expected to derive benefit from the special situation

Now let’s see the features of this scheme in detail.

 

 

Kotak Special Opportunities Fund - NFO Overview

Kotak Special Opportunities Fund is designed for such investors who are seeking long-term capital growth and want to invest in a portfolio of predominantly equity & equity-related securities following a Special Situation Theme. The scheme aims at long-term capital appreciation. The scheme comes under a very high-risk category. There is no guarantee that the investment objective of the scheme will be achieved.

The Scheme will be available for investment from 10/06/2024 to 24/06/2024. The scheme will invest in Equity and Equity Related Securities of special situations theme,  Equity and Equity Related Securities Other than of special situations theme, and Overseas Mutual Funds schemes/Foreign Securities.

 

Fund Overview

Kotak Special Opportunities Fund has an AUM of more than 3.81 lakh crores (as of 31st March 2024), 0.005% stamp duty will be levied on all the applicable mutual funds transactions, and the minimum investment is Rs 100.

Start Date	10 June 2024
End Date	24 June 2024
VRO Rating	-
Expense Ratio	NA
Exit Load	For redemption or switch out up to 10% of the initial investment amount purchased or switched in within 1 year from the date of allotment: Nil.  If units redeemed or switched out are more than the limit within 1 year from the date of allotment: 1%  If units are redeemed or switched out on or after 1 year from the date of allotment: Nil
AUM (Fund size)	Rs. 3.81 lakh crores
Lock-in	No Lock-in
Stamp Duty	0.005% (From July 1st 2020)
Benchmark	Nifty 500 TRI
Min. investment	SIP Rs. 100
Risk	Very High
Short-Term Capital Gains (STCG)	Returns taxed at 15% if you redeem before 1 year
Long-Term Capital Gains (LTCG)	After 1 year, pay a LTCG tax of 10% on returns of ₹1 lakh+ in a financial year

 

 

The Objective of the Fund

The scheme intends to generate long-term capital appreciation by investing predominantly in opportunities presented by unique situations such as Company Specific Events, Corporate Restructuring, Government Policy changes and/or Regulatory changes, Technology Disruption/ Innovation, or companies going through temporary but unique challenges and other similar instances.

Asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows: 

Types of Instruments	Minimum Allocation (% of Net Assets)	Maximum Allocation (% of Net Assets)	Risk Profile
Equity and Equity Related Securities of Special Situations theme	80	100	Very High
Equity and Equity Related Securities Other than that of special situation’s theme and Overseas Mutual Funds Schemes/ETFs/International Securities	0	20	Very High
Debt and Money Market Securities	0	20	Low to Moderate
Units issued by REITs and InvITs	0	10	Very High

 

Peers of Kotak Special Opportunities Fund

Equity, Sectoral / Thematic Funds	1Y Return (%)	3Y Return(%)	AUM (Cr)
Franklin India Opportunities	69.56	30.13	3459.54
HDFC Housing Opportunities	57.2	26.23	1430.61
Axis Special Situations Fund	32.19	16.13	1216.85

 

Risk Factors in Such Funds

• The scheme will be subjected to concentration risk as the fund is mandated to invest in the special situation theme. This may result in the Portfolio NAV being more volatile as compared to a diversified portfolio.

• Accordingly, the scheme may also face a relatively higher liquidity risk owing to larger concentrations in their exposures in the event of any significant redemptions occurring in the scheme.

• Owing to high concentration risk being a thematic scheme, the risk of capital loss is relatively high.

 

Past Performance of Equity, Sectoral / Thematic Funds

Equity, Sectoral / Thematic Funds	NAV (Rs)	Annualised Return	Return/Risk
ICICI Pru India Opp Fund	29.84	24.27%	Very High Risk
SBI Magnum Equity ESG Fund	220.64	16.32%	Very High Risk
Invesco India PSU Equity Fund	39.90	26.24%	Very High Risk

 

Kotak Special Opportunities Fund NFO - Who Can Invest?

The Kotak Special Opportunities Fund is appropriate for investors searching for long-term capital appreciation through key and event-driven investments. The Scheme is ideal for those who are comfortable with equity market dangers and seek to profit from unique market opportunities.

 

 

Kotak Special Opportunities Fund NFO - Growth Fund Managers

• Mr. Devender Singhal

 

Conclusion

The Kotak Special Opportunities Fund offers a remarkable way to deal with value-effective financial planning by focusing on extraordinary circumstances and vital occasions. This information-driven, event-centered technique plans to open critical worth and give long-term capital appreciation.

By picking the Kotak Special Opportunities Fund, investors might enhance their portfolio's long-term performance through focused and strategic equity investments. But just based on information presented in this blog do not get involved in any sort of investment. Please consult your financial expert before making an investment decision. 

Disclaimer: This NFO Analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.