Kotak Mahindra Mutual Fund has introduced a new investment opportunity called the Kotak Transportation & Logistics Fund.
This New Fund Offer (NFO) opened for public subscription on 25 November 2024 and will close on 9 December 2024.
The fund is an open-ended equity scheme focusing on India’s growing transportation and logistics sector.
Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, highlighted that this fund offers a chance to invest in a sector poised for growth due to initiatives like Bharatmala
and Gatishakti. These government programs are expanding opportunities in logistics, which is expected to grow further with India’s manufacturing boom.
Investment Focus and Benefits of the Fund
The fund aims for long-term high returns by investing mainly in the stocks of companies involved in transportation, logistics, and related areas. This includes businesses in:
Transportation infrastructure
Logistics services
Sustainable and innovative transport solutions
Financial companies supporting these sectors
According to Harsh Upadhyay, Chief Investment Officer and Fund Manager at Kotak Mahindra AMC, this theme is driven by rising consumption, higher per capita income,
and the expansion of e-commerce, auto, and related industries. The government’s efforts to lower transportation costs through an efficient logistics network will boost sector growth and attract new companies.
Over the past five years, the number of listed companies in this sector has risen by 44%.
Key Features and Suitability
Minimum Investment: You can start with just ₹100 during the NFO period and add in multiples of ₹1 thereafter.
Fund Manager: The fund will be managed by Nalin Bhatt, who has over 20 years of experience in equity research and fund management.
Investment Approach: The fund will follow a bottom-up strategy, investing across largecap, midcap, and smallcap companies.
This fund is ideal for investors looking for long-term capital growth, but returns are not guaranteed.
It is advised to consult a financial or tax advisor if you are unsure whether this fund suits your investment goals.
