Kotak Mutual Fund has launched an arbitrage fund. Named as Kotak Cash Plus Fund, the scheme will aim to generate income by taking advantage of the arbitrage opportunities emerging out of mis-pricing between the cash market and derivatives market. Thus, the fund will invest into equity shares and take a simultaneous sale position in the derivatives market in the same security as when any arbitrage opportunity is available. Initially, the fund will be available for subscription from September 12 to September 21, 2005.
The fund will invest 50-100 per cent of its assets in debt and money market instruments, 0-50 per cent in equities (combined with sale in futures market). The fund can also invest up to 10 per cent of its assets in debt instruments with a maturity of more than one year, and up to 25 per cent in securitised debt.
The fund would aim to generate returns better than the returns from money market instruments, and would suit investors who want to park their money for short-term.
The minimum investment amount has been kept at Rs 5,000. The fund would not charge any entry load. However, an exit load of 0.50 per cent will be levied for redemption within 30 days of allotment.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
