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Kotak Mahindra launches first multistrategy equity fund

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Kotak Mahindra (UK), a wholly-owned subsidiary of India’s Kotak Mahindra Bank, has announced the launch of the Kotak India Dynamic Fund, a multistrategy equity fund that aims to generate a

Kotak Mahindra (UK), a wholly-owned subsidiary of India’s Kotak Mahindra Bank, has announced the launch of the Kotak India Dynamic Fund, a multistrategy equity fund that aims to generate an annual absolute return of 20 per cent irrespective of market direction and seeks to minimise monthly downside volatility.

‘A USD1trn-plus economy, India is forging ahead at a potential real GDP growth rate of 8 per cent per annum, and the Indian capital markets have mirrored this,’ says Paul Parambi, head of international business at Kotak Mahindra Bank. ‘Over the past five years, the Indian equity markets have grown at a compound annual growth rate of 31 per cent.

‘However, this growth has not been devoid of volatility. The markets have become increasingly volatile, leading to sharp corrections and to subsequent dynamic changes in sector and market capitalisation leadership, throwing open many investment opportunities. The Kotak India Dynamic Fund aims to take advantage of these opportunities.’

The fund’s principal investment manager, R. Rajagopal, says: ‘The primary strength of the fund’s investment strategy is that it is multi-dimensional and adaptive to different stages of the market cycle.

‘We will use a mix of varied strategies like core equity, long/short equity, limited risk and cash/arbitrage with a view to generating a positive return under different market conditions. Our team of three fund managers will manage this fund with research support from an in-house analyst team and sell-side analysts from other brokerage houses.’

This is a capital-at-risk fund and is subject to the normal risks associated with investment in India including, but not limited to, high market volatility, variable market liquidity, geopolitical risks (including political instability), exchange rate fluctuations (USD/INR), changes in tax regime and restrictions on investment activities of foreign investors.

Kotak Mahindra (UK), a member of the London Stock Exchange and a foreign institutional investor registered with the Securities Exchange Board of India, offers a range of India-specific investment products including equity funds and managed accounts. The Kotak group is an Indian financial services conglomerate active in areas including commercial banking, stockbroking, asset management, life insurance, retail banking and investment banking.

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