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

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...
Read more

Avoid NFOs

  Don't get taken in by the flurry of new fund offers. You will be better off sticking to the tried and tested schemes.   For the past one year, to cash in on the bull run in equities, mutual fund houses have gone on a new fund offer (NFO) overdrive. But experts are unanimous in their advice: avoid NFOs . While past performance is not an indicator of how a fund will fare in the future, it does tell the investor how skilful the fund manager is. This crucial information is missing in an NFO. Not only is there no track record to judge an NFO by, many NFOs are similar to funds that already exist. If the new fund is similar to existing funds, you are better off investing in the latter. Around 67% of the new launches in 2014 were closed-end products. Investing in the NFO of a closed-end fund is doubly risky. In case the fund's performance is lacklustre, a closed-end fund does not allow you to exit. Even though closed-end funds are listed on the stock...
Read more

Know the loan-eligibility before buying a house

WHILE on a house-hunting spree, prospective buyers do a great amount of homework before identifying their dream home - the location, property rates in the vicinity, carpet area, developer's reputation, proximity to the railway station/bus stop and so on. Once these aspects score high on the satisfaction front, a decision is made. However, very rarely do the buyers evaluate their own eligibility for getting a loan before finalising the house. Often, the loan sanction is taken for granted. As a result, they get a shock when their loan request is rejected. Therefore, it is best to objectively assess your repayment capacity and take into account other factors before applying for a loan. Here are a few reasons why your loan request could be turned down: Inadequate Income: The bank or HFC may refuse a loan if your earnings fall short of the minimum desired income level prescribed by the lender. Irregular income streams, too, could play spoilsport. At your end, to eliminate this possibi...
Read more

L&T Income Opportunities Fund dividend

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 L&T Income Opportunities Fund declares L&T Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( R /unit) L&T Gilt Investment-DQ 0.3 L&T Gilt Investment Direct-DQ 0.3 L&T Income Opportunities Ret-DQ 0.31 L&T MIP-Wealth Builder-DQ 0.3 L&T MIP-Wealth Builder Direct-DQ 0.3 L&T MIP-DQ 0.3 L&T MIP Direct-DQ 0.3 L&T Short Term Opp-DQ 0.26 L&T Short Term Opp Di...
Read more

Birla Sun Life Top 100 Fund dividend

  Birla Sun Life Mutual Fund has announced dividend under the dividend option of Birla Sun Life Top 100 Fund . The quantum of dividend shall be R0.85 per unit.   The fund house has also announced dividend under the dividend option of Birla SL FTP Series JT Reg-DQ and Birla SL FTP Series JT Reg-D . The quantum of dividend will be the entire distributable surplus as on the record date.   The record date has been fixed as January 22, 2015. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - Invest Online Download Application Forms For fu...
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