Kotak International REIT FOF NFO - Investment Objective, SIP Details, Who Should Invest

Kotak International REIT FOF NFO

Kotak Mutual Fund has announced the launch of Kotak International REIT FOF (Fund of Funds). The scheme would be investing in units of SMAM ASIA REIT Sub Trust fund and other overseas REIT funds.

The New Fund Offer (NFO) starts from 07th December 2020 and will end on 21st December 2020.

Investment Objective 

The investment objective of the scheme is to provide long term capital growth by investing in units of SMAM ASIA REIT Sub Trust fund and/or other similar overseas REIT funds.

What is REIT?

REIT stands for Real Estate Investment Trust which owns, operates, and finances income-generating real estate assets.REITs pool investments from numerous investors just like mutual funds. REIT helps the investors benefit from the growth in the real estate markets without buying, managing, or financing any property by themselves.

Why Asia-Pacific REIT FOF?

1. It can offer an attractive dividend yield.
2. With the strong economic growth, it shows strong growth potential by an increase in demand for commercial facilities, office buildings, and logistic properties.
3. Robust economic growth and rising rents can lead to a rise in the prices of property in the APAC region.
4. REIT market development in the APAC region is expected to result in increased earning opportunities and therefore generate stable income.
5. Dividend Yields from REITs in APAC have been higher than in developed markets.
6. Growth in consumer spending is expected to increase retail sales & a rise in demand for commercial spaces.
7. Urbanization is leading to a rise in commercial as well as housing markets.

Exposure of Kotak International REIT FOF:

Kotak REIT offers exposure to various REIT across the geographies and also to various real estate segments like Data Centres, Residential, Warehouses, Logistics, and Offices.

Following is the allocation of the underlying SMAM Asia Sub Trust Fund as of October 2020:

Features

• The Fund will be investing at least 95% of its assets in units of SMAM ASIA REIT Sub trust Fund and other overseas REIT funds.
• The Fund has an experienced investment team including:

- Expert Portfolio managers in the real estate sector

- An expert team of 10 professionals who will be monitoring the Asia and Pacific REITs market.

• The fund will follow a bottom-up approach for investments by focusing on profit and capital growth, Dividend yield, valuation, and market liquidity.
• The portfolio will be formed with a combination of Asian REITs with major investments in Singapore & Hong Kong and Pacific REITs with a major allocation in Australian market.

Who Should Invest?

This scheme is suitable for investors who are -

• Interested in long term capital growth.
• Interested in capital growth and income by making investments in units of SMAM ASIA REIT Sub trust Fund and other overseas REIT funds.
• Recommended for investors with an investment horizon of 5 years & above.

Asset Allocation Pattern-

About the scheme-

SIP Details