Kotak FMP 3M Series 20
Get tax efficient returns at low risk,
Invest in Kotak FMP 3M Series 20
The Scheme Kotak FMP 3M Series 20, a close-ended Debt Scheme
The investment objective of the Scheme is to generate returns through
Scheme Objective investments in debt and money market instruments with a view to significantly
reduce the interest rate risk.
Debt / Money Market Instruments and Government Securities, normally maturing
Investment in
in line with the maturity profile of the Scheme.
Likely Composition of Rating Profile: P1+, A1+, PR1+, and F1+.
Portfolio
Initial Offer Rs. 10 per Unit.
NFO period June 04th 2007 till June 6th, 2007
Rs 5000/- (Rs. Five Thousand only) and in multiple of Re. 1 each for both Growth
Minimum Investment
and Dividend Options.
90 days after the date of allotment (If such date falls on a non-Business Day, the
Maturity
scheme would mature on the next Business Day)
Exit Load: 1% if redeemed before maturity of the scheme. However, where an
investor wants to switch his investments into any other scheme/plan of Kotak
Load Mutual Fund on the maturity date, or from one option to other option under the
same scheme, no exit load will be charged. The Exit Load will not be charged on
redemption of Units by the Fund on the Maturity Date.
Minimum Amount of Rs. 1,000 or 100 Units each for both Growth and Dividend Options. If the holding
Redemption is less than Rs. 1000 or 100 Units, the entire balance will be redeemed as and
when redemption request is received from the investor.
Payable to Kotak FMP 3M Series 20
Redemption On each Business Day at price related to applicable NAV
Fund Manager Mr. Deepak Agrawal
Options Growth, Dividend (Payout and Reinvestment) Options
Dividends if declared by the scheme will be tax free in the hands of the
Tax Benefit
investors.
The Risk Profile and Investment Pattern:
The asset allocation under the Scheme, under normal circumstances, will be as follows:
Investments Indicative Allocation Risk Profile
(% to net assets)
*Debt and Money Market instruments 100** Low to Medium
*Debt instruments shall be deemed to include securitised debts (excluding foreign securitised debt) and investment in
securitised debts shall not exceed 50% of the net assets of the Scheme.
** Investment in Government Securities shall not exceed 50%.
From time to time any of the Schemes may hold cash for the following reasons:
• To meet the redemption requirements
• Due to lag in deal date and value date of acquiring an asset
• Due to marginal difference in maturity date of the asset and the maturity date of the scheme
The asset allocation shown above is indicative and may change for a short term on defensive considerations. When
the allocation of Government securities in the portfolio goes above 50%, review and rebalancing will be conducted
within 10 Business days.
“Kotak FMP 3M Series 20 enables investors to minimise interest-rate-risk if they hold their
units till maturity of the Scheme”
(Please read the Offer Document carefully before investing.)
The Benefit:
Advantage Kotak FMP 3M Series 20…
Kotak FMP 3M Series 20
(Dividend Option)
Fixed For HUF &
Particulars Deposit Individuals For others
A Amount Invested (Rs.) 100,000 100,000 100,000
Assumed annualised return (post expense yield) from
B the date of allotment 6.06% 8.65% 8.65%
C Interest / Gain for 90 days 1,494 2,133 2,133
D Applicable tax rate 33.99% 14.16% 22.66%
E Tax liability (Rs.) 508 265 394
F Post Tax Returns (Rs.) (C-E) 986 1,868 1,739
Post Tax Annualised Yield (F/A) 4.00% 7.58% 7.05%
These returns are assumed for the purpose of explanation only and does not guarantee the actual performance.
Fixed deposit rate is the average of the interest rates offered by Allahabad Bank,SBI, ICICI Bank and HDFC
Bank for 61 - 91 days.
Assuming that the investor is subject to the highest tax rate.
The investor is realizing the entire NAV Growth as dividend on the date of maturity.
Applicable Tax rate is an in-house view and above may not be construed as tax advise. It is recommended that
the investor consult his/her tax adviser to ascertain their tax benefit.
Investment Manager of the Scheme (Kotak FMP 3M Series 20): Kotak Mahindra Asset Management Company Limited
Risk Factors: * Mutual Funds and securities investments are subject to market risks and there is no assurance or
guarantee that the objectives of the Scheme will be achieved. * As with any securities investment, the NAV of the Units
issued under the Scheme can go up or down depending on the factors and forces affecting the Debt and money markets.
* Past performance of the Sponsor/Fund/AMC or that of any Scheme of the Fund does not indicate the future
performance of the Scheme of the Fund. * Kotak FMP 3M Series 20 is only the name of the Scheme and does not in any
manner indicate the quality of the Scheme, future prospects or returns. * The NAV of the Units issued under the Scheme
may be affected, inter-alia, by changes in the market, interest rates, changes in credit rating, trading volumes, settlement
periods and transfer procedures; the NAV is also exposed to Price/Interest-Rate Risk and credit Risk and may be affected
inter-alia, by government policy, volatility and liquidity in the money markets and pressure on the exchange rate of the
rupee. * Tax laws may change, affecting the return on investment in Units. * In the event of receipt of a very large number
of redemption requests or very large value redemption requests or of a restructuring of the Scheme portfolio, there may
be delays in the redemption of Units. Please refer to the paragraph, "Right to limit Redemption" in the Offer Document. *
As per SEBI Circular No. SEBI/IMD/CIR No.10/22701/03 dated December 12, 2003, the Scheme shall have a minimum of
20 investors and no single investor shall account for more than 25% of the corpus of the Scheme. In case of non-
fulfillment with either of the above two conditions, the investor's money would be refunded, in full, immediately after the
close of the New Fund Offering of the Scheme. * Kotak Mahindra Bank Ltd. is not liable or responsible for
any loss or shortfall arising from the operations of the scheme. * Statutory: Kotak Mahindra Mutual
Fund has been established as a trust under the Indian Trusts Act, 1882, Investment Manager: Kotak
Mahindra Asset Management Co. Ltd. Sponsor: Kotak Mahindra Bank Ltd. (Liability Rs. Nil) Trustee: Kotak Mahindra
Trustee Co. Ltd. Before investing, please read the Offer Document.