Kotak Mutual Fund launches Long Term Income (LTI) facility

Kotak Mutual Fund launches Long Term Income (LTI) facility

Investors can now redeem 0.75% of their investments at the prevailing Net Asset Value (NAV), on a monthly basis

Highlights: ·         Provides regular cash-flow to investors who want a predictable income to manage their expenses ·         Investors can easily liquidate the funds, if needed ·         Has exit load waiver for redemptions of up to certain limit   ·         Only realized earnings would be subject to capital gain tax

 

Kotak Mahindra Asset Management Company. Ltd announced the launch of Long Term Income (LTI) facility to meet the need for predictable, long term, cash-flow requirement of investors. On a monthly basis, investors can redeem 0.75% of their investments at the prevailing Net Asset Value (NAV).

Investors of Kotak Income Opportunities Fund, Kotak Medium Term Fund, Kotak Equity Savings Fund, Kotak Monthly Income Plan and Kotak Bond Fund can avail of the facility if their minimum investment is Rs. 2 lakh. LTI facility is available for investors investing in these schemes on or after June 1, 2016 and is available under growth option only.

Lakshmi Iyer, Chief Investment Officer (Debt) & Head Products, Kotak Mahindra Asset Management Co. Ltd. said, “Long Term Income (LTI) facility is our attempt at answering the need for expectable, long term, cash-flow of investors. This facility will allow investors to redeem a fixed sum of money periodically at 0.75% of the investment amount on monthly basis at the prevailing Net Asset Value (NAV). Thus, investors who are in need of regular cash flow and also, investors who are looking to generate a second source of cash flow apart from their primary source of income, such as salary or business income; can benefit from the Long Term Income (LTI) facility. We believe this kind of facility being offered through the mutual fund route aids in increasing the much needed retail participation in the industry.”

Investors availing the LTI facility can redeem up to 10% of the initial investment amount within one year, without any exit load. The 10% limit is applicable for Kotak Income Opportunities Fund, Kotak Equity Savings Fund, and Kotak Monthly Income Plan. In case of Kotak Medium Term Plan, investors can redeem up to 15% of the initial investment amount within 18 months, without any exit load. There is no exit load for Kotak Bond Fund.

Investors can opt for the Long Term Income (LTI) facility and withdraw their investments systematically on a monthly basis to fulfil their financial commitments.

About Kotak Mahindra Asset Management

Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned subsidiary of Kotak Mahindra Bank Limited (KMBL), is the Asset Manager for Kotak Mahindra Mutual Fund (KMMF). KMAMC started operations in December 1998 and has approximately 7 lakh investors in various schemes. KMMF offers schemes catering to investors with varying risk - return profiles and was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities. The company is present in 76 cities and has 79 branches.