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 Year | 2 Year | 3 Year | Since Inception | |
| Wellington Global Innovation Fund | 39.41% | 39.23% | 25.24% | 27.76% |
| MSCI All Country World Index TRI | 36.23% | 24.83% | 16.68% | - |
Wellington Global Innovation Fund - Top 10 stock holdings
| Stock Holding | Sector | Country | Weightage |
| Amazon.com Inc | Consumer Discretionary | United States | 5.1% |
| Alphabet Inc | Communication Services | United States | 5.0% |
| Facebook Inc | Communication Services | United States | 4.1% |
| Visa Inc | Information Technology | United States | 4.0% |
| AsterZeneca PLC | Health Care | United Kingdom | 4.0% |
| Prologis Inc | Real Estate | United States | 3.4% |
| United Health Group | Health Care | United States | 3.3% |
| China Gas Holdings | Utilities | China | 2.8% |
| Walt Disney Co | Communication Services | United States | 2.8% |
| Aptiv PLC | Consumer Discretionary | Ireland | 2.6% |
*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
| Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) | Risk Profile |
| Units of Wellington Global Innovation Fund | 95% | 100% | High |
| Debt & money market instruments | 0% | 5% | Low to Moderate |
About the Scheme
| Name of the fund | Kotak Global Innovation Fund of Fund |
| Fund launched by | Kotak Mutual Fund |
| Asset Management Company | Kotak Asset Management Company Limited |
| Type of scheme | An open-ended fund of fund scheme primarily investing in units of Wellington Global Innovation Fund |
| 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. |
| Benchmark | MSCI All Country World Index TRI |
| Entry Load | Not 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, & SWP | Available |
| Plans Available |
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| Options |
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| Fund Managers | Mr. Arjun Khanna |