Skip to main content

Mutual Fund Review: Kotak Bond Short Term Plan

Type: Debt Short -Term
Fund Manager: Laxmi Iyer, Ritesh Jain
Launch Date: 25- Apr- 2002
 
Kotak Bond Short term plan is typically aimed at short term investors with an investment horizon of one month or more, and the investment objective of the scheme is to provide reasonable returns and high level of liquidity by investing in debt and money market instruments of different maturities, so as to spread the risk across different kinds of issuers in the debt markets. Short Term Debt Funds are meant to park surplus money for a short period of time, typically less than a year and provide safety, liquidity and stability of returns.
 
As per its latest disclosed portfolio, the scheme has apportioned 78.88% of its assets in debt instruments and 21.12% cash and equivalent. In the last three months debt exposure has been pruned a bit.
 
The scheme was launched in Apr 2002, and has managed to generate above-average returns for the selected time frames. Over a period of three year it has posted compounded annualized return of 5.42% while its benchmark and category average lagged far behind at 2.95% and 5.22% returns respectively.

Expense Ratio of the scheme is 1.50% which is quite high compared to the category average of 0.88%.The scheme's risk profile is lower than the peer group average as indicated by standard deviation and beta.
 

 

Kotak Bond Short Term Fund -G

Peer Group Average

Std. Dev.

0.0083

0.0187

Beta (Slope)

0.0173

0.0268

 
 
 
 
The scheme presently manages a corpus of Rs 80.16 crores. The scheme has invested 33.38% of its assets in bonds, 19.10%% in commercial paper 45.5% in non-convertible debentures comprising of good quality rated papers such as AAA and P1+. It has allocated 87.99% to AAA rated and equivalent papers and around 9.97% in AA/AA+ rated papers. The average maturity of the portfolio is 336 days, which is higher than the category average of 276 days.
 
Kotak Bond STP has been in operation for quite sometime now, and has managed to deliver above average returns consistently. The scheme is less volatile in nature as compared to the peer group, and although the average maturity of the scheme is a bit on the higher side for a short term scheme, the high exposure to quality papers and its consistent track record combine to make the scheme an attractive proposition.
 
Minimum investment amount is Rs 50000 and offers both growth and dividend options. The scheme is benchmarked against Crisil Short-term Bond Fund Index. It charges no entry and exit load. The scheme is suitable for the investors looking for a safety of debt instruments and having short term horizon.
 

Popular posts from this blog

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...

Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund Tata Mutual Fund has decided to merge Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund, with effect from January 16, 2015.   Investors of Tata Indo-Global Infrastructure Fund can redeem/ switch out units from December 13, 2014 to January 12, 2015 without paying any exit load. For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund A...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now