Kotak Mutual Fund Launches Long Term Income (LTI) facility

Investors can now redeem 0.75% of their investments at the prevailing Net Asset Value (NAV), on a monthly basis

Kotak Mahindra Asset Management Company. Ltd announced the launch of Long Term Income (LTI) facility to meet the need for predictable, long term, cash-flow requirement of investors. On a monthly basis, investors can redeem 0.75% of their investments at the prevailing Net Asset Value (NAV).

Investors of Kotak Income Opportunities Fund, Kotak Medium Term Fund, Kotak Equity Savings Fund, Kotak Monthly Income Plan and Kotak Bond Fund can avail of the facility if their minimum investment is Rs. 2 lakh. LTI facility is available for investors investing in these schemes on or after June 1, 2016 and is available under growth option only.

Lakshmi Iyer, Chief Investment Officer (Debt) & Head Products, Kotak Mahindra Asset Management Co. Ltd. said, “Long Term Income (LTI) facility is our attempt at answering the need for expectable, long term, cash-flow of investors. This facility will allow investors to redeem a fixed sum of money periodically at 0.75% of the investment amount on monthly basis at the prevailing Net Asset Value (NAV). Thus, investors who are in need of regular cash flow and also, investors who are looking to generate a second source of cash flow apart from their primary source of income, such as salary or business income; can benefit from the Long Term Income (LTI) facility. We believe this kind of facility being offered through the mutual fund route aids in increasing the much needed retail participation in the industry.”

Investors availing the LTI facility can redeem up to 10% of the initial investment amount within one year, without any exit load. The 10% limit is applicable for Kotak Income Opportunities Fund, Kotak Equity Savings Fund, and Kotak Monthly Income Plan. In case of Kotak Medium Term Plan, investors can redeem up to 15% of the initial investment amount within 18 months, without any exit load. There is no exit load for Kotak Bond Fund.

Investors can opt for the Long Term Income (LTI) facility and withdraw their investments systematically on a monthly basis to fulfil their financial commitments.