How & When to Choose Kotak Equity Savings Fund?

Equity Savings Fund is the category which invests in a mix of equity, debt, and arbitrage instruments. However, it maintains a minimum exposure of up to 65% (it contains arbitrage portion as well) to be called as equity fund by the definition of SEBI and the rest is invested in debt securities. Kotak Equity Savings Fund was launched on 13th Oct 2014, after SEBI’s categorization norms to define taxation in debt fund. So, following the significant exposure, the investment in this scheme is categorized according to equity taxation norms. Here are points mentioning how and when to choose Kotak Equity Savings Fund G.

Long-term Goals:

As the scheme maintains significant exposure to equity instruments, it is better to hold on this scheme for long-term goals. Further, the AMC also recommends the investors to stay with Kotak Equity Savings Fund growth for more than a year and exempt from the exit load of approximately 1%. So, if you are planning for a goal of 5-years and more, you can choose this scheme and gain over a period with equity taxation benefits.

Asset Allocation

The portfolio of Kotak Equity Savings Fund G NAV consists of around 26.94% assets in equity instruments, 22.36% in debt instruments, and 49.93% in cash equivalent to use for arbitrage opportunities. Apart from this, the fund manager of the scheme has the freedom to change allocation in case arbitrage opportunities are unavailable or debt returns are more attracting than the equity. So, by maintaining a portfolio with lower risk and stable returns, this scheme is good for investors who have moderate risk appetite and want to invest in equity instruments. Choose this scheme when you want to maintain a diversified portfolio and attain equity taxation benefits on the capital gain.

Investment Objective:

For the investors who want to invest in debt instruments with low to moderate risk-appetite and want to get the advantage of equity savings, Kotak Equity Savings Fund is the best choice to get moderate returns over a long-term horizon.

How to Invest?

• To start investing in Kotak Equity Savings Fund G easily, you are required to register first at MySIPonline. When you are done with the registration process, you will get a mail mentioning your ID and password. 
• In the next step, you have to complete your profile with the required information. You are also required to provide your personal and bank account detail and wait for KYC approval. 
• When you are done with the primary procedure, you will get a separate account at our portal to start investing. By selecting the Kotak Equity Savings Fund growth scheme in the portfolio, you can invest so easily. 
• Further, you can check the performance of the scheme from your account itself. 
• Depending on the market conditions, you will also get updates as well. 

From the above-mentioned points, you can invest in Kotak Equity Savings Fund after deciding the relevancy of the scheme for your portfolio. For more information about this scheme, you can visit our website and contact the experts as well.