The Kotak Classic Opportunity Fund is an investment option that primarily invests in the equity market and remaining in debt bonds or other money market securities. Its investments are spread across medium-large cap markets. It can allocate 100% of its assets in stocks or invest 25% of them in debts or other instruments. Due to its flexible nature, its investment strategies change according to the market's movement, fluctuations, and performance.
The Kotak Classic Opportunities Fund offers three different strategies to its investors for managing their investments:
Self-managed strategy – If an investor wishes to manage their investments independently, this is the ideal strategy for them.
Age-based strategy – In this method, allocation of risks is done based on the investor's age and how much risk they are willing to take. It also gives the flexibility to change the allocation if an investor feels they want to reduce the risk.
Systematic Switching Strategy – This method allows the investor to choose how many units of their investment they want to invest in what type of securities.
It holds INR 5,14,249 lakhs (as of 31 July 2020) of assets under management (AUM), and it is an open-ended fund. The fund's significant holdings are held by Infosys Ltd., Reliance Industries Ltd., ICICI Bank Ltd., HDFC Bank Ltd., SBI ETF Nifty Bank, Tata Consultancy Services Ltd., etc.
Facts about the Fund: Table
Name of the Fund
Kotak Classic Opportunities Fund
Fund House
Kotak Life Insurance
Fund Type
Individual, unit-linked
Category
75-100% - equities, 0-25% - debt bonds or other money-market securities.
For Limited – 5 years for a policy term of 10 years and 10 years for a policy term of more than 10 years.
Risks involved
The fund is prone to fluctuations in the market, and the investor will bear the entire responsibility for the risks.
Investment Objective
The Kotak Classic Opportunity Fund aims at gaining or multiplying capital over a long period. For doing so, it invests in a variety and mixture of medium-large capital markets. The majority focus of the fund is investing in the equity markets. However, it can choose to invest a substantial amount of its fund in low-risk bonds or other instruments.
The portfolio of investment of the fund, for every single investor, entirely depends upon how much risk they are willing to take. It also depends upon the performance or trends of the market. The fund's central aim is to focus on maximum capital growth. It has a highly flexible nature, due to which it can change its investment strategies according to the investor's decisions. Therefore, all decisions, strategies, etc., are made keeping in mind the best benefit of the investor.
It is important to remember that the Kotak Classic Opportunities Fund is an investment option under the ace investment insurance plans of Kotak Life. Hence, the investments that are made are considered the premiums of the policy chosen. These premiums are invested in securities to generate the policy returns. Therefore, the investor must know that the premiums stand at a significant market risk because investment in securities is subject to fluctuations in the market. Hence, there is no guarantee that the objectives of the fund will be realized at all times.
Fund Summary
Kotak Classic Opportunities Fund
Risk-return profile – Aggressive
Net Asset Value (NAV) – INR 40.386 (as of 22 June 2021)
Absolute returns – 52.10% (1 year)
1-day return – 0.09%
Fund Return Summary
The following table shows the return summary of the Kotak Classic Opportunity Fund:
Offers a wide range of flexible options to the investor.
Involves risks as the investments are mainly in the equity market.
Additional benefits can be added with an increased investment amount.
The investor cannot withdraw any money until the fifth year.
The dual motive of investments for future use and health policy.
Not suitable for anyone looking for short-term investment.
Substantial capital growth.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Benefits of the Kotak Classic Opportunities Fund:
Long-term capital growth: The fund helps in accumulating wealth over time. The longer an investor stays invested, the more will be their financial backup. Though the capital market has many risks, with good risk mitigation strategies, it generates promising returns.
Financial security: As it is a fund that can be linked to a health policy. Hence the returns it generates will be payable to the investor in the form of policy benefits. Therefore, if the family faces any uncertain circ*mstances, the money can provide a lot of financial relief in trying times.
Income source: After 5 policy years, money can be withdrawn from the fund. If the investor faces any financial difficulty, the withdrawn money can be used as income. The payouts from the fund can easily replace the income.
Flexibility: The best thing about the Kotak Classic Opportunity Fund is its flexible nature in all its aspects. Starting from investment strategies to how much or for how long an investor is willing to pay. The investor is even given a choice to select how much risk they are ready to take. Moreover, if the chosen strategy doesn't work out well for the investor, they can shift to other strategies conveniently.
Fund House Details
The Kotak Classic Opportunities Fund is offered and managed by Kotak Life, India's one of the largest growing life insurance companies. Their vision is to become the best life insurers in India, and for fulfilling this, they aim at providing maximum assurance to their customers. They understand the uncertainties of life, and hence, they believe in long-term savings for families to financially secure their future as much as they can.
The experts at Kotak Life are highly professional with vast knowledge about the market. Accepting customers' changing requirements, they aim at innovating, and they strive for perfection at all levels. They treat their customers with utmost honesty. Hence, provide the best financial advice and suggest the best plans or products to them.
Who Should Invest in Kotak Classic Opportunity Fund?
Investors seeking long-term goals: People who aim at investing a part of their income in building a financial backup for the future should find this fund suitable for them.
Investors with the knowledge of equities: It is primarily an equity fund. Therefore, anyone investing in this should have a basic understanding of the functioning of the equity market to fully understand the risks involved and how they are gaining or losing money.
Investors with risk tolerance: The equity market, in general, carries a high risk. That means any money invested in them is always at risk. Therefore, a person who is willing to take these risks should invest in this fund.
Investors with a dual aim: This fund is a way of generating health policy returns. Hence, investing in this would mean securing one’s health financially and also multiplying savings for the future.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Conclusion
Therefore, Kotak Classic Opportunities Fund is an investment option that provides several flexible options to its investors to suit their requirements. The fund has been successful in generating good returns in its run in the market and financially securing many families. According to their convenience, it has given the liberty to its investors to manage their investments, hence, rapidly becoming the most sought-after fund investment option.
A. The plans with the dual motive of savings and investment are the ace investment insurance plans of Kotak Life. The Kotak Classic Opportunities Fund is an investment option under them.
A. To invest in this fund, an investor has first to buy a linked health policy. Then the investment in the fund can be made online or offline, according to the customer's convenience.
The fund has a 3/5/9 year CAGR of 15.9%, 10.6% and 15.8% respectively. The Average 3/5/9 year Rolling Alpha is 3.4%, 3.2% and 3.4%. Its 3-year performance is Somewhat Good and has outperformed its benchmark most of the time. ... Kotak Equity Opportunities Fund - Growth.
Kotak Classic Opportunities Fund is a unit-linked insurance fund incorporated in India. The Fund's investment objective aims to maximize opportunity for long term capital growth by holding a significant portion in a diversified and flexible mix of medium to large-sized company equities.
The Fund Management Charges for the ULIPs, however, are lower than Mutual Funds, being 1.35% and 2.5% respectively. Moreover, the insurance regulator IRDAI mandates that the total effective charges on ULIPs should not exceed 2.25%. This means, the total charges on a ULIP can never exceed what a mutual fund charges.
Dynamic Bond Fund : The fund has 91.39% investment in Debt, of which 52.99% in Government securities, 38.4% is in Low Risk securities. Suitable For : Investors who want to invest money for longer duration but prefer less riskier assets compared to equity funds.
The scheme seeking to generate long term appreciation from a portfolio constituted of equity and equity related securities of large and midcap companies.
"This is a fund that invests mainly in bonds issued by the government of India. These bonds do not carry any risk of default since the repayment of investors' money is backed by the government.
With a presence of over 12 years in the Mutual Fund industry, Kotak Mutual Fund has garnered the trust of over 10 lac investors. The fund house offers best in class products across investor lifecycle. They strive hard to deliver consistent performance over the benchmark across all their products.
Kotak Mutual Fund is a good choice for mutual fund investors. It is a reputed Asset Management Company sponsored by Kotak Mahindra Bank. It is a SEBI and AMFI registered company and safe to invest.
Union Budget 2021 declared that ULIPs will be taxed just like mutual funds, if the annual premium exceeds Rs 2.5 lakh. The maturity proceeds in such a case, will no longer be tax free but subject to tax in a similar way that mutual funds are taxed. As a result, they no longer offer the tax arbitrage.
Dynamic Bond Funds are debt mutual funds which invest in debt and money market instruments like Government Securities, corporate bonds etc of different durations. These funds do not have any restriction with regards to duration or maturity of the securities they invest in.
An open ended debt scheme predominantly investing in AA+ and above rated corporate bonds. A relatively high interest rate risk and moderate credit risk. The Fund will invest a minimum of 80% in such bonds.
The scheme seeks to provide investors an opportunity to generate attractive returns with moderate degree of liquidity through investments in debt and money market instruments such that the Macaulay duration of the portfolio is between 3 years - 4 years.
An opportunities fund invests in companies, sectors or investment themes depending on where the fund manager anticipates growth opportunities. Opportunities funds scout for themes in the debt market. The objective is to maximize gains for investors.
Small Cap Fund : The fund has 98.95% investment in domestic equities of which 24.45% is in Large Cap stocks, 1.24% is in Mid Cap stocks, 61.11% in Small Cap stocks. Suitable For : Investors who are looking to invest money for at least 3-4 years and looking for very high returns.
For mobile banking investors, you need to login to your mobile banking app, select investment option, then select redemption option. You can also visit the nearest branch if you need assistance to redeem your funds.
Kotak Mahindra Mutual Fund is the sixth largest mutual fund house by asset size in India. The fund house manages assets worth (AUM) of Rs 1.68 lakh crore for the quarter ending June, 2020. The asset size of the fund house decreased by 9.97% from its March 2020 quarterly figure.
An opportunities fund invests in companies, sectors or investment themes depending on where the fund manager anticipates growth opportunities. Opportunities funds scout for themes in the debt market. The objective is to maximize gains for investors.
A Qualified Opportunity Fund investment provides potential tax savings in three ways: Tax deferral through 2026 - A taxpayer may elect to defer the tax on some or all of a capital gain if, during the 180-day period beginning at the date of sale/exchange, they invest in a Qualified Opportunity Fund.
All you need to do is file IRS form 8996 and you can self-certify your partnership or corporation as a qualified opportunity fund and then in the eyes of the IRS you're officially a qualified opportunity fund.
We saw in the previous section that investing in the S&P 500 has historically allowed investors to double their money about every six or seven years. Your initial $1,000 investment will grow to $2,000 by year 7, $4,000 by year 14, and $6,000 by year 18.
Opportunity funds are nothing but a type of mutual funds that use the pooled money of investors to purchase stocks of companies with high opportunities for growth.
Qualified opportunity funds (QOFs) mean to drive business and real estate investments toward low-income or economically distressed areas of the country. The federal government incentivizes investors to put money into these funds by offering preferential tax treatment on capital gains.
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