NFO Alert: Kotak Mahindra Mutual Fund launches Kotak Healthcare Fund; all it is advisable to know

Photo of author

By Dainik Khabre

NFO Alert: Kotak Mahindra Mutual Fund launches Kotak Healthcare Fund; all it is advisable to know

Kotak Mahindra Mutual Fund introduced the launch of the Kotak Healthcare Fund. The scheme opened for public subscription on November 20, 2023, and can shut on December 04, 2023. The scheme re-opens for steady sale and repurchase on or earlier than December 18, 2023.

What form of mutual fund scheme is that this?

This is an open-ended fairness scheme investing in pharma, healthcare & allied sectors. This product is appropriate for buyers searching for

  • Long-term capital progress
  • Investment in a portfolio of predominantly fairness and equity-related securities of firms engaged in pharma, healthcare & allied sectors.

Shibani Kurian, Senior Executive Vice President, KMAMC stated, “The fund supplies buyers a possibility to take part within the immense potential of India’s healthcare trade. The sector is present process a big transition, pushed by rising incomes and better well being consciousness reshaping the way in which Indians prioritise their well being. As incomes rise and consciousness of well being and wellness will increase, there’s a rising demand for high quality healthcare providers and merchandise.”

What is the main objective of investing in this fund?

The scheme aims to achieve long-term capital appreciation by investing in equity and equity-related securities of companies directly or indirectly involved in the pharmaceutical, healthcare, and related sectors. It’s important to note that there is no guarantee that the scheme will achieve its objective.

Nilesh Shah, Managing Director, KMAMC said, “We are offering the Kotak Healthcare Fund to provide our investors with an opportunity to participate in India’s healthcare sector. The Indian healthcare sector is poised for robust long-term growth driven by domestic demand, rising exports, and the shift from unorganized to organized healthcare services. Changing demographics and lifestyles are also expected to drive healthcare demand. Kotak Healthcare Fund offers investors an avenue to benefit from the structural opportunities in this space.”

How could one make investments on this scheme?

Investors can make investments below the scheme with a minimal funding of 5000 per plan/choice and in multiples of Re 1. There is not any higher restrict for investment.

Under regular circumstances, the asset allocation of the scheme can be as follows:


Indicative allocations (% of whole property)

Risk Profile



Equity and equity-related securities of firms engaged in Pharma, healthcare & allied sectors



Very High

Other fairness and equity-related securities of firms



Very High

Overseas mutual funds schemes / ETFs / Foreign securities



Very High

Debt and cash market securities



Low to Moderate

Units of REITs & InvITs



Very High

Are there comparable mutual funds out there?

To date, many asset management companies (AMCs) have launched such healthcare funds, thus, permitting inclined buyers to avail of returns comparable to the whole returns of the securities on this specific index. These embrace:

Mutual Fund House

Name of the Fund

10-year returns (in %)

DSP Mutual Fund

DSP Healthcare Fund

SBI Mutual Fund 

SBI Healthcare Opportunities Fund


UTI Mutual Fund

UTI Healthcare Fund


Aditya Birla Sun Life Mutual Fund

Aditya Birla Sun Life Pharma & Healthcare Fund

ITI Mutual Fund

ITI Pharma & Healthcare Fund

Mirae Asset Mutual Fund

Mirae Asset Healthcare Fund

ICICI Prudential Mutual Fund

ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund

IDBI Mutual Fund

IDBI Healthcare Fund


Quant Mutual Fund

Quant Healthcare Fund

LIC Mutual Fund

LIC MF Healthcare Fund

HDFC Mutual Fund

HDFC Pharma and Healthcare Fund

Source: AMFI (As of November 20, 2023)

How will the scheme benchmark its efficiency?

The efficiency of the scheme is measured towards Nifty Healthcare Index (Total Return Index). The Nifty Healthcare Index is designed to replicate the behaviour and efficiency of healthcare firms. The Nifty Healthcare Index contains of most of 20 tradable, exchange-listed firms. The composition of the aforesaid benchmark is such that, it’s most suited to evaluating the efficiency of the scheme. The trustees reserve the correct to vary benchmarks sooner or later for measuring the efficiency of the scheme and as per the rules and directives issued by SEBI infrequently.

Are there any entry or exit masses to this scheme?

This scheme entails no “Entry Load”, which signifies that buyers don’t have to pay something to park their earnings on this scheme. The “Exit Load” would even be calculated as below

– For redemption /change out inside 30 days from the date of allotment: 1%

– If items are redeemed or switched out on or after 30 days from the date of allotment: NIL

Who will handle this scheme?

Shibani Sircar Kurian, Dhananjay Tikariha, Arjun Khanna, and Abhishek Bisen are the designated fund managers of this scheme.

Does the fund comprise any inherent danger?

The scheme entails “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.



Milestone Alert!Livemint tops charts because the quickest rising information web site on the earth Click here to know extra.

Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.


Updated: 20 Nov 2023, 03:35 PM IST

Source link

Leave a Comment