Kotak Mahindra Mutual Fund launches Nifty AAA Bond Jun 2025 HTM Index Fund

Kotak Nifty AAA Bond Jun 2025 HTM Index Fund (NFO) is an open-ended index fund launched by Kotak Mahindra Mutual Fund on March 15, 2024. The scheme aims to generate returns that match (before fees and expenses) the performance of the Nifty AAA Bond Jun 2025 HTM Index. This index tracks the performance of AAA-rated bonds that are maturing near the target date of the index. The minimum investment amount is Rs 100 and there is no upper limit on additional investments. The new fund offer (NFO) will close on March 26, 2024.

Investment Objective

The investment objective of the Kotak Nifty AAA Bond Jun 2025 HTM Index Fund is to generate returns that are commensurate (before fees and expenses) with the performance of Nifty AAA Bond Jun 2025 HTM Index, which seeks to track the performance of AAA rated bond issued by Public Sector Undertakings (PSUs), Housing Finance Companies (HFCs), Non-Banking Financial Companies (NBFCs) and Banks maturing near target date of the index, subject to tracking errors. However, there can be no assurance that the investment objective of the Scheme

This NFO of Kotak Mahindra Mutual Fund is suitable for investors who are seeking income over target maturity period.

Risk-o-meter: 

Potential Risk Class: it’s a close ended scheme, relativelymoderate interest rate risk and relatively low credit risk (A – II).

Funds Allocation

Benchmark

The performance of Kotak Nifty AAA Bond Jun 2025 HTM Index Fund is benchmarked against the Nifty AAA Bond Jun 2025 HTM Index.

Fund Managers

Mr. Abhishek Bisen, aged 45, holds a BA in Management and an MBA in Finance from IIM-C. He has been with the company since October 2006, primarily managing debt schemes. Before joining Kotak AMC, he worked at Securities Trading Corporation of India Ltd, focusing on sales, trading of fixed income products, and portfolio advisory. He also has 2 years of experience in merchant banking with a leading firm

Peer Schemes 

Characteristics of Debt Index Funds

• Tracks a debt index, offering diversified exposure to fixed-income securities.
• Generally lower risk than equity funds due to focus on bonds and other debt instruments.
• Aims to match the return of the underlying index, minus fees.
• Often passively managed, leading to lower fees compared to actively managed debt funds.
• Provides transparency with holdings based on the tracked index.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.