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
by Shrutee K/DNS
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.
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