scorecardresearchNew Mutual Fund Launch: Kotak India Alternate Allocation Fund; All you

New Mutual Fund Launch: Kotak India Alternate Allocation Fund; All you need to know about this new fund of funds

Updated: 03 Aug 2022, 12:27 PM IST
TL;DR.

The Kotak Alternate Allocation Fund's objective is to diversify across multiple sectors such as consumer, technology, healthcare and financials as well as across multiple stages of entities

The funds aim to raise  <span class='webrupee'>₹</span>1,500 crore including a green shoe option of  <span class='webrupee'>₹</span>750 crore.

The funds aim to raise 1,500 crore including a green shoe option of 750 crore.

Kotak Investment Advisors announced the launch of Kotak Alternate Allocation Fund, a fund of funds, to invest in other funds such as private equity (PE), venture capital funds and even direct investments into companies.

The funds aim to raise 1,500 crore including a green shoe option of 750 crore. The fund's objective is to diversify across private equity/ VC funds across multiple sectors such as consumer, technology, healthcare and financials as well as across multiple stages starting from early stage to growth stage and late stage across different vintages.

“Investors require an optimal alternate equity portfolio through diversification, right fund manager access and professional selection. Lack of knowledge and information availability in this asset class makes it difficult to take an informed choice. Diversification of risk across managers is tough due to high minimum investment requirements,” Nidhi Chawla, Fund Manager, Kotak India Alternate Allocation Fund said.

Through Kotak’s Fund of Funds, the company intend to provide investors access multiple funds as well as leverage its institutional diligence with peer benchmarking data available, coupled with institutional monitoring of long tenure funds, she said.

It is seen that Indian alternative assets' ecosystem has turned quite vibrant with PE/VC fund managers outperforming benchmark indices but still their funds are not accessible to small investors.

“Many of the marquee fund managers have been inaccessible to domestic investors as they raised only offshore capital or had high minimum ticket investment requirements. With this Fund of Funds, we intend to give access to such funds and increase domestic overall participation in the alternative assets,” said Srini Sriniwasan, Managing Director, Kotak Investment Advisors.

Kotak Investment Advisors Limited, a part of the Kotak Mahindra Bank, focuses on the Alternate Assets Business.

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First Published: 03 Aug 2022, 12:27 PM IST