Kotak Indo World Infrastructure Fund

Kotak Mahindra Asset Management Company has come out with a three-year close ended equity fund called Kotak Indo World Infrastructure Fund. The fund seeks to generate long-term capital appreciation by investing in stocks of domestic as well as global infrastructure companies. This fund would automatically be converted into an open ended fund after the expiry of three years.

The fund proposes to invest at least 65 per cent of the fund proceeds into Indian equities. It has an option of investing between 10-35 per cent in overseas infrastructure fund and upto 35 per cent may be invested in debt and money market instruments.

The fund has short-listed a global infrastructure fund of T. Rowe Price (to be launched soon) as the vehicle to invest in overseas markets. Kotak Mutual Fund had launched a fund focused on the emerging markets in July this year, which primarily invests in the units of T. Rowe Price SICAV-TGEMF.

Scheme Details
Issue Opens: November 27, 2007
Issue Closes: December 22, 2007
Type: Closed-end, equity scheme
Benchmark Index: S&P CNX Nifty to the extend of 65 per cent of the portfolio, and MSCI World Index to the extend of 35 percent of the portfolio.
Minimum Investment: Rs. 5,000
Entry Load: Nil
Exit Load: Nil. However, redemption will be permitted after deduction of unamortized initial issue expenses
Cost: Initial issue expenses, not exceeding 6 per cent of the corpus collected, would be amortized on a daily basis over the three-year close-ended tenure of the scheme.