Kotak Mahindra Mutual Fund has launched a diversified equity fund. Named as Kotak Lifestyle Fund, it will invest in stocks of companies which are likely to benefit from changing lifestyle and rising consumerism in India. The fund will be initially available for subscription from January 24 to February 22, 2006.
Benchmarked against the S&P CNX 500 index, the scheme will aim to capitalise upon the consumption boom in the economy, and therefore invest in the sectors which are likely to benefit from the growth of domestic demand for lifestyle products. The fund will invest 65-100 per cent of its assets in equities, while it can also invest up to 35 per cent of its assets in debt and money market instruments.
The fund will not charge any entry load. It will charge an exit load of 2 per cent upon redemption within 6 months from the date of allotment, while an exit load of 1 per cent will be charged upon redemption after 6 months but within 12 months.