The Hindu Business Line : Fund Update

Kotak Mutual Fund has recently launched its gold fund, Kotak Gold ETF (Exchange Traded Fund). The minimum investment during NFO is Rs 5,000.The face value of the each unit offered under the scheme shall be Rs 100 and it will be issued at premium or discount equivalent to the difference between allotment price and face value of Rs 100.

Ongoing purchase directly from the mutual fund is restricted to authorised participants and large investors, provided the value of units to be purchased is in creation unit size (1,000 grams). . The units will be listed on the BSE and the NSE. On listing, investors may purchase units through secondary market on any trading day. The fund will charge an entry load of 1.5 per cent for investment below Rs 5 lakh. The load reduces with investments nearing Rs 1 crore. It charges no entry load for an investment above Rs 1 crore. The issue closes on July 4.

Birla Sun Life Mutual Fund has launched a close-ended capital protection fund. The scheme, called Birla Sun Life Capital Protection Oriented Fund, seeks to protect capital by investing in high-quality fixed-income securities maturing in line with the tenure of the scheme, and also hopes to provide capital appreciation by investing in equity and equity-related instruments.

The fund offers two plans with three-year and five-year investment horizons. The three-year plan can invest up to 16 per cent of its corpus in equity while the rest (84-100 per cent) will be held in debt and money market instruments. Conversely, the five-year plan can invest a higher portion (up to 23 per cent) of its corpus in equity and the balance (77-100 per cent) in debt and money-market instruments. Both the schemes will have a separate portfolio. The fund will not charge any entry load during the NFO, which closes on July 6.

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