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Kotak Global Innovation Fund of Fund NFO - Investment Objective, Features, Taxation and SIP details

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Gaurav Seth
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Kotak Global Innovation Fund of Fund NFO

Kotak Mutual Fund has announced the launch of the Kotak Global Innovation Fund of Fund. The scheme would be predominantly investing its assets in units of the Wellington Global Innovation Fund.

The New Fund Offer (NFO) starts from 08th July 2021 and will end on 22nd July 2021. The scheme will reopen for continuous sale and repurchase within 5 business of allotment.

Investment Objective 

The scheme’s investment objective is to generate long-term capital growth by investing its assets in the units of Wellington Global Innovation Fund.

Features

  • The fund will be investing a minimum of 95% of its assets in units of the Wellington Global Innovation Fund.
  • The Wellington Global Innovation Fund was incepted in February 2017 and has an AUM of USD 413 million.
  • The underlying fund will invest in 40-70 equity growth stocks.
  • Underlying fund will also focus on the ESG framework.

Investment Process of Wellington Global Innovation Fund 

1. Idea Generation

The fund will focus on drivers of innovation and the beneficiaries of innovation and trend.

2. Fundamental Analysis

Fund will do the fundamental analysis of the stocks, and to will consider various factors for analysis:

  • Trend
  • Innovation
  • Barriers to entry
  • Risks

3. Valuations

The fund will also analyse the valuations of the stocks on the basis of below factors

  • Long time horizon
  • Market size, share potential, and long term margin outlook
  • Relative P/E

4. Portfolio Construction

Fund will determine the position size of the stocks by conviction  relative to contribution of risk.

Wellington Global Innovation Fund - Past Performance

 1 Year2 Year3 YearSince Inception
Wellington Global Innovation Fund39.41%39.23%25.24%27.76%
MSCI All Country World Index TRI36.23%24.83%16.68%-

 

Wellington Global Innovation Fund - Top 10 stock holdings

Stock HoldingSectorCountryWeightage
Amazon.com IncConsumer DiscretionaryUnited States5.1%
Alphabet IncCommunication ServicesUnited States5.0%
Facebook IncCommunication ServicesUnited States4.1%
Visa IncInformation TechnologyUnited States4.0%
AsterZeneca PLCHealth CareUnited Kingdom4.0%
Prologis IncReal EstateUnited States3.4%
United Health GroupHealth CareUnited States3.3%
China Gas HoldingsUtilitiesChina2.8%
Walt Disney CoCommunication ServicesUnited States2.8%
Aptiv PLCConsumer DiscretionaryIreland2.6%

*As of 31st May 2021

Who Should Invest?

This scheme is suitable for investors who are -

  • Interested in long-term capital growth.
  • Interested in investments in Wellington Global Innovation Fund.
  • Recommended for investors with an investment horizon of 5 years & above.

Asset Allocation Pattern

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)Risk Profile
Units of Wellington Global Innovation Fund95%100%High
Debt & money market instruments0%5%Low to Moderate

About the Scheme

Name of the fundKotak Global Innovation Fund of Fund
Fund launched byKotak Mutual Fund 
Asset Management CompanyKotak Asset Management Company Limited
Type of schemeAn open-ended fund of fund scheme primarily investing in units of  Wellington Global Innovation Fund
Investment ObjectiveThe scheme’s investment objective is to generate long-term capital growth by investing its assets in the units of Wellington Global Innovation Fund.
BenchmarkMSCI All Country World Index TRI 
Entry LoadNot Applicable
Exit Load

-If units are redeemed or switched out within 1 year- 1% of applicable NAV

-If units are redeemed or switched out after 1 year- NIL

Taxation

Taxed as Non-Equity

-If units are sold within 3 years, gains will be added to income and taxed as per the investor's tax slab

-If units are sold after 3 years, gains are taxed with long-term capital gain tax @20% after indexation benefits

Minimum Application Amount ₹ 5,000 & in multiples of ₹ 1 thereafter
Minimum Additional Amount₹ 1,000 & in multiples of ₹ 1 thereafter
SIP Investments₹ 1,000 & in multiples of ₹ 1 thereafter (minimum 6 installments)
STP, & SWPAvailable
Plans Available
  • Regular
  • Direct
Options
  • Growth
  • Dividend Payout
  • Dividend Reinvestment
Fund ManagersMr. Arjun Khanna

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