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

ICICI Prudential Dynamic Plan Invest Online

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   ICICI Prudential Dynamic Plan             Invest Online This fund does remarkably well during falling markets, but fails to show the same prowess during a rising market. The fund sticks to its mandate to adapt to the dynamic nature of the market by shuttling between debt and equity. It takes aggressive asset calls in equity when the market surges by investing in quality mid-cap stocks. At the same time, it adopts a defensive strategy by investing in debt and cash when markets get overvalued, making it a good long-term choice.     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 ...
Read more

Group Health Insurance

Buy Group Health Insurance Online   For Human Resources, the biggest challenge today is to decide whether medical benefits should be offered to employees or not, what type of plans should be offered, what will be the cost and how will the cost be split between employees and employer. Well, most of these are subjective and would depend on a lot of factors including company size, average employee salary, etc. However, this article will give you a fair idea on how you should go about deciding these factors: 1. Why offer group health insurance benefit to employees : Studies have proved that retention rates among employers offering GHI are much higher than the ones who are not offering. Moreover, the cost of providing this benefit as a percentage of salary is very low as compared to the perceived value. As an example, say if average salary of an employee in your organization is 4 LPA. If you decide to offer a health insurance benefit to him for a Sum insured of ...
Read more

Birla Sun Life MIP II Savings 5

  Birla Sun Life MIP II Savings 5 - Invest Online   Have you traditionally been a debt investor but now wish to test waters in equities? Then, debt-oriented funds such as Birla Sun Life MIP II Savings 5 (Birla Savings 5), which have limited exposure to equities, may fit your requirement. With a five year return of 10.5 per cent compounded annually, the fund managed a good 3-3.5 percentage points more than its benchmark Crisil MIP Blended Index, as well as its category average. The fund appears well poised to capitalise on a falling interest rate scenario and has increased the average portfolio duration of its debt instruments in recent times. Suitability Birla Savings 5 is suitable only for conservative investors. If you want to make a beginning in equities and cannot take any short-term declines in your stride, then this fund will suit you. If you are already an equity investor and want to use a debt-oriented fund merely as a diversifier, then you may prefer peers from the HDFC and Re...
Read more

Lump Sum or SIP?

Invest Mutual Fund Online     You have a lump sum in hand and you wish to invest in equity funds. However, you have heard a lot of talk about investing in equity funds through Systematic Investment Plans (SIPs) because they help average costs, ensure you do not ill-time the market, and help you invest in small sums, besides giving you many other advantages. So, should you invest the money you have in hand in one go, or let it remain in your bank account and then do an SIP? There is no harm in investing a lump sum amount. For all you know, compounding, over the long term, could work better with lump sum. However, make sure you fulfill all of these three criteria if you want to invest in one go. Else, SIP is the way to go. #1: You invest for the long term According to past data, ideally, if you have a time frame of 12 years or more, you can consider lump sum investing (provided you satisfy the other two conditions that follow). So, what is the sanctity behind 12 years? Is it because only...
Read more

Mutual Fund Review: Reliance Regular Savings Balanced

Reliance Regular Savings Balanced fund has shown great resilience during market crash After a shaky start, this fund has established itself as a strong contender in this space. In the past three years it has ridden the market well by not only delivering during the market run-ups but also displaying resilience during the crash. In 2008, it witnessed the second lowest fall among its category and last year it was amongst the top three performers with a return of 76 per cent (category average: 61%).   The poor underperformance in 2006 can well be credited to the low equity allocation of the fund, which stood at just over 10 per cent for only four months that year. Though the fund has the leeway to go up to 75 per cent in equity, it has never touched that limit. In fact, it has exceeded 70 per cent in just five months in its entire history. During the crash of 2008, the fund managers had no problem going right down to 54 per cent (equity exposure). Fund managers Omprakash Kukian and A...
Read more
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