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Tag: Kotak Mahindra AMC

  • Kotak Mahindra AMC launches silver ETF Fund of Fund. Details right here

    Kotak Mahindra Asset Management Company Ltd in the present day introduced the launch of Kotak Silver ETF Fund of Fund which is an open-ended fund of fund scheme that invests in items of the Kotak Silver ETF. 

    The New Fund Offer opens for public subscription on March 13, 2023 and closes on March 27, 2023.

    Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Co. Ltd stated, “We are launching Kotak Silver ETF Fund of Fund to make it simpler for traders to diversify their portfolios with handy entry to this treasured steel, which has numerous industrial functions. The present Silver costs current a possible alternative for these fascinated by allocating funds to this asset within the medium to long run.”

    According to the corporate, this product is appropriate for traders who’re searching for long-term capital appreciation.

    Investment in Kotak Silver ETF Fund of Fund may be completed even with no Demat account

    Investment in Kotak Silver ETF Fund of Fund may be easy and accessible, as it may be completed even with no Demat account, like several Mutual Fund scheme. 

    Advantages Kotak Silver ETF Fund of Fund

    There are additionally different benefits that the scheme can supply like diversification, straightforward liquidity, no making prices, and no storage prices.

    In the previous, silver as a commodity had offered safety throughout crises. For occasion, throughout the current Russia-Ukraine battle, whereas the Nifty 50 fell by 10%, silver costs surged by 12% (Source: Bloomberg, Data as on thirty first Jan’23).

    Kotak Mahindra Asset Management Company Limited (KMAMC) – an entirely owned subsidiary of Kotak Mahindra Bank Limited (Kotak), is the Asset Manager for Kotak Mahindra Mutual Fund (KMF). KMAMC began operations in December 1998 and as of thirty first December 2022, has roughly 62.4 lakh investor folios in numerous schemes. 

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  • Investing classes from Kotak Mahindra AMC’s Nilesh Shah

    Buy a enterprise as in case you are not going to have a look at it for the subsequent 10 years.” This advice by investment guru Warren Buffet has remained the guiding principle for Nilesh Shah where it concerns his investments. “I invest as if I am not going to touch it (the investments) for the next decade or so,” says Shah, the managing director at Kotak Mahindra Asset Management Company Ltd.

    As with many CEOs and senior executives of firms, a big a part of Shah’s wealth, too, is tied to his employer. Most of his private wealth (60%) is in fairness—both in worker inventory choices (ESOPs) or shares of Kotak Mahindra Bank that he acquired way back. (He owns some shares within the bodily format as nicely in order that he doesn’t get tempted to promote them.)

    Another 15% of his property is held in fairness mutual funds, largely within the massive cap and large-and-mid cap class segments. Shah doesn’t spend money on passive funds, besides the place it’s required as per market regulator Sebi’s guidelines. Under these rules, because the CEO of Kotak Mahindra AMC, Shah has to spend money on all of the schemes of the fund home. But these guidelines got here into impact solely in October 2021, and therefore such mutual fund (MF) models are a really small a part of Shah’s portfolio. Interestingly, Shah depends on a distributor to transact in MFs reasonably than choosing direct plans.

    “I don’t do lively asset allocation because of the constraints of my job. I’m a long-term investor by default. However, I’ll advocate buyers to do lively asset allocation if they’ve the pliability,” he said, attributing his heavily ‘buy-and-hold’ approach to the constraints of his job and the demands on his time.

    Even as Nilesh Shah has compounded his wealth in equity, he feels particularly unlucky with real estate. “I must have given token money for property at least 6-7 times in my life and each time the deal did not go through.” Around 15% of Shah’s private wealth sits in actual property. This consists of his main residence and property he has purchased on the outskirts of huge cities in an effort to get a gradual rental earnings. “I purchase property in locations the place town goes to develop,” he told Mint, adding that he prefers commercial over residential property.

    As for his primary residence, he often wishes he had heeded his wife’s advice and spent more money on it. “She told me that you should not try to bargain when it comes to the house we live in, and she was right about it,” he provides.

    Shah has a small allocation to debt (8% of his portfolio) however that is largely his emergency corpus and cash saved in short-term funds, ready to be utilized for exercising ESOPs. He doesn’t depend on it for normal earnings.

    Shah has a really small allocation to gold (2% of property). However, he’s seeking to enhance this. “I invested in gold as my mom instructed me to purchase it for my daughters. I will likely be wanting ahead to extend allocation to gold through Sovereign Gold Bonds (SGBs) as I consider that central banks world wide will likely be seeking to spend money on gold following the freeze on Russian FX reserves,” he mentioned.

    When requested about his holidays, Shah recollects a defining second in his life. “My spouse is a good planner. When we acquired married, we had gone on a honeymoon on a shoestring funds. Both of us had then promised one another that we’d have a good time our silver jubilee with none funds constraints. God has been variety to us, and we may redeem our pledge,” he said.

    “Wealth means the ability to follow the Varnashrama (the four phases of an individual’s life as per the Hindu ashrama system). My job gets me decent money and also helps earn the goodwill of my investors,” he added.

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  • ‘It will be some time before bond yields stabilize’

    There is hardly any anchoring for yields by the Reserve Bank of India (RBI) for now, says Lakshmi Iyer, CIO (debt) & head merchandise, Kotak Mahindra AMC, in an interview to Mint. Edited excerpts.

     

    How shut are we to a peak in bond yields?

    I don’t understand how a lot time there may be to the height. Right now, the majority of traders shouldn’t have very excessive confidence to put money into long-duration funds. The RBI has launched one other charge, standing deposit facility (SDF). Yet, the repo and reverse repo haven’t been raised. Market charges have inched up increased. There is hardly any anchoring for yields by the RBI for now. And then, there may be this big provide of presidency bonds. While yields may stabilize, we’re nearly at 7.20% on the 10-year GoI bond.

    Are yields very near the place they need to be?

    I don’t know the place they need to be. It is like throwing darts at the hours of darkness with out realizing what sort of demand is there. So, it’s going to be a while earlier than yields stabilize. Getting individuals again to the lengthy finish of the yield curve would require a big push. 

    Will goal maturity funds within the 5-7-year horizon proceed to be engaging?

    I believe the theme of incomes the carry portfolio yield to maturity for mounted earnings for 2022 will proceed, regardless of all upheavals. However, the yield curve, which was steep has truly began flattening.

    What is the surroundings on credit score?

    On this, we’re fantastic as a result of incrementally, company steadiness sheets, which had been cash-tight, have seen a decide up in volumes, and companies have been throwing up free money flows. Significantly leveraged companies have pruned down debt. You have additionally seen the incremental debt not getting added as a result of there’s hardly any capex taking place. And within the final two years, there was a large compression in credit score spreads because the Franklin Templeton situation. 

    The concern issue has given technique to numerous consolation. And in fact, the post-covid easing period has additionally given consolation. So, I believe that spreads are reflecting that they’re right here to remain for a while. That stated, we’re nonetheless not seeing a voracious pickup in financial institution credit score. 

    Any broad methods in mounted earnings?

    So a lot carnage has already occurred on the yield curve. So, for a 12-month horizon, you’ll be able to go for methods with durations even past 15 – 18 months. 

    Likewise, for a three-year horizon, you’ll be able to go as much as three and a half to 4 years.  Second, decrease your danger with methods like goal maturity funds. You know, what you’re entering into, as a result of there’s a correct index, and rate of interest danger is mitigated to a big extent, although, there’ll be ups and downs. The carry is actually trying engaging.

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