Kotak Mutual Fund Launches Smart Facility for SIP, STP and SWP Investors

Kotak Mutual Fund has announced the launch of its smart investor facility of Systematic Investment Plan (SIP), Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP). The new facility available for all Kotak Open-End Equity Plans, Equity Index Funds and Hybrid Equity Funds, will calculate payout for SIP and STP based on market valuation. When appraisals are expensive, the investment amount will be half of the base amount of the SIP.

In contrast, the investment will be double the base amount of the SIP when valuations are cheap. The facility will also allow investors to select the minimum and maximum level of their SIP amount.

Valuation is calculated based on the Kotak Balanced Advantage Fund’s net equity allocation, which uses a combination of adjusted price-to-earnings ratio, trend and sentiment data. Simply put, the Smart SWP will allow investors to redeem a higher amount when stock valuations are expensive and a lower amount when valuations are cheaper.

Investors can also opt for the Smart option via the Systematic Transfer Plan (STP) route. This facility is also available to be utilized through the Systematic Withdrawal Plan (SWP).

“Kotak Mutual Fund‘s latest offering, the Smart Facility, will help investors who are looking for an equity valuation-based approach to investing to invest for their long-term goals,” said Nilesh Shah, Group Chairman and Managing Director. General, Kotak Mahindra Asset Management Company.

Calling it a “simple yet powerful tool for systematic investing,” Shah added that the smart facility will also use market volatility in favor of investors.

Stock markets will continue to be volatile. The smart thing is to use this volatility in our favor. It is a very simple yet powerful tool for systematic investing, easy to understand and even easier to invest. I am sure investors in the next few days will benefit from this offer,” he said.

Kotak Mutual Funds offer programs for investors with varying risk and return profiles. The Company’s assets are managed by Kotak Mahindra Asset Management Company Limited (KMAMC), which is wholly owned by Kotak Mahindra Bank. With investor portfolios of over 43.8 lakh and a presence in over 80 cities nationwide, KMAMC is one of the biggest players in the segment.

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Dolores W. Simon