Kotak Bond Short Term Fund: Stable Returns With Moderately Low Risk
The open-ended scheme of Kotak Mutual Fund falls under the category of debt mutual funds that strives hard to provide consistent returns by diversifying the assets in the debt and money market instruments. The average maturity period of Kotak Bond Short Term Fund- Regular Plan invests in the securities having an average maturity period of 2.44 years. This short duration fund of Kotak AMC is suitable for the investors who wish to accomplish their short term financial goals. Moreover, as on 31st March, 2019 the AUM of the scheme is Rs. 8,562 crore and the numbers clearly reflects the trust of Indian investors on this scheme. Also, the scheme comes with zero exit load which again provides high liquidity to the investors.
Kotak Bond Short Term Fund: Impressive Investment Style for High Returns
The fund manager, Mr. Deepak Agrawal follows the SEBI mandate regarding the short term funds and parks the money in the debt & money market instruments having low maturity period. The short term bond fund of Kotak ploughs the money in the instruments having high rating credit quality along with medium interest rate sensitivity. For this, the scheme targets the AAA, A1+, and AA rated credit quality instruments and also some portion of assets is also invested in the SOVs and cash equivalents. The investment philosophy followed by the Kotak Bond Short Term Fund is one thing that differentiates this scheme from the other category of mutual funds and makes it one of the best mutual funds in India.
Kotak Bond Short Term Fund: Healthy Track Record in the Past
The short term fund of Kotak AMC maintains a balanced portfolio and implements best investment strategy to grab the market opportunities pertaining due to interest rate fluctuations. The bond prices are inversely proportional to the interest rate, and according to the market condition the scheme increase or decrease the percentage of asset allocation in the short duration fund. Such a powerful investment strategy is sure to bring high returns, right? The 5, 7, and 10-year annualized returns of the scheme is 7.79%, 8.02%, and 7.51%, respectively. The excellent track record is again a strong reason due to which an investor should start an SIP in this scheme.
Kotak Bond Short Term Fund: Who Should Start the SIP Investment?
As said above, the scheme is a perfect option for an investor who wish to achieve moderate returns without taking much risk in the mutual fund space. Also, the moderately low risk takers having short term investment horizon can also consider investing in this short duration fund of Kotak for achieving stable returns in short time. Moreover, the scheme is again a good pick for the investors who want to add diversification in their portfolio. Therefore, if you are also an investor having similar ideologies then you should start the SIP plan in this scheme. The minimum SIP investment required is Rs. 1000.
Top 5 Benefits of Short Term Fund of Kotak AMC
- No Exit Load: The fund provides high liquidity to the investors and can be considered as a suitable replacement of liquid and overnight funds in terms of growth and performance.
- Less Fluctuations: Short term funds are less sensitive to the market movements than the long term funds. Thus, if you are unsure about the market movement and want to save yourself from the fluctuations then you should consider starting your SIP in Kotak Bond Short Term Fund. Want to calculate the estimated wealth creation? Use the online SIP Calculator to ease the task.
- High Returns in Short Time: The past performance of this short term fund has been extraordinary which makes it a perfect mutual fund choice for securing consistent growth in short duration of time.
- Low Risk: Kotak Bond Short Term Fund Regular Plan invests in the debt and money market instruments which makes it less prone towards risk than the pure equity funds. Thus, if you are looking for a safe option in the mutual fund industry then you should park your surplus cash in this fund.
- Portfolio Diversification: Want to achieve high returns in the mutual fund space? Never forget to maintain a diversified portfolio and there is no debt scheme better than Kotak Bond Short Term Fund that can help you in achieving the same.
Scrolling so far, you must have grasped all the essential information about the Kotak Bond Short Term Fund Regular Plan. Thus, if you are a perfect candidate for this scheme, then you should consider including this short term fund of Kotak Mutual Fund in your portfolio.