MUMBAI, 8th AUGUST, 2022 (GPN): Kotak Mutual Fund announced the launch of its Smart Facility for SIP, STP and SWP for all investors. This feature takes the traditional SIP/STP/SWP facility a step further,where investors’ instalment (in case of SIP/STP) or withdrawal (in case of SWP) varies based on
market valuation. The new facility is available for all open-ended equity schemes, Equity Index Funds and Kotak Equity Hybrid Fund.

The Smart SIP is aptly called ‘Smart’ as it considers valuations and makes investments accordingly.

With the new facility, the amount of investment or withdrawal is based on equity valuations – Cheap, Neutral and Expensive. When valuations are expensive the default SIP instalment will be half
(0.5x) of the base SIP amount and when valuations are cheap the instalment would be (2x) of the Base SIP amount. This facility also allows you to choose the minimum and maximum SIP amount.

Investors can also opt for this option through the Systematic Transfer Plan (STP) route.

The valuations are decided based on the net equity allocation of the Kotak Balanced Advantage Fund, which uses a combination of adjusted trailing Price to Earnings ratio (P/E ratio), and the trend as well as the sentiment data.This platform is also available for redemptions through Systematic Withdrawal Plan (SWP).

The Smart SWP enables the investor to redeem a higher amount when equity valuations are expensive and a lower amount when valuations are cheaper.

Nilesh Shah, Group President & MD, Kotak Mahindra Asset Management Company said, “The Kotak Mutual Fund’s latest offering, the Smart Facility will help investors who are looking for an equity
valuation-based investment approach to invest for their long-term goals. Equity markets will continue to be volatile. Smartness is in using this volatility in our favour. This is a very simple yet powerful tool for systematic investments which is easy to understand and even easier to invest in. I am sure investors in coming days will benefit from this offering.”

About Kotak Mahindra Asset Management Company Limited
Kotak Mahindra Asset Management Company Limited (KMAMC) – a wholly owned subsidiary of Kotak Mahindra Bank Limited (Kotak), is the Asset Manager for Kotak Mahindra Mutual Fund (KMF). KMAMC started operations in December 1998 and as of 30th June, 2022, has approximately 43.8 lakh investor folios in various schemes. KMF offers schemes catering to investors with varying risk – return profiles and was the first fund
house in the country to launch a dedicated gilt scheme investing only in government securities. The company is present in 82 cities and has 87 branches as of 30th June, 2022.