Kotak Mutual Fund has launched an open-ended equity scheme focused on the transportation and logistics theme. The New Fund Offer (NFO), Kotak Transportation & Logistics Fund, opened on November 25 and will be available for subscription until December 9, 2024.
Kotak Transportation & Logistics Fund investment objective
The new fund aims to generate long-term capital growth by investing predominantly in equity and equity-related securities of companies engaged in transportation, logistics and related activities. “This theme encompasses businesses involved in transportation infrastructure, logistics services, innovative solutions for efficient and sustainable transportation, and financial companies supporting these sectors,” Kotak Mahindra Asset Management Company Ltd said in a statement.
Kotak Transportation & Logistics Fund will adopt a bottom-up approach, with the flexibility to invest across various market capitalisations, including large, mid and small-cap companies.
Investors can invest a minimum amount of Rs 100 and any amount thereafter during the NFO period.
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Opportunity to participate in transportation and logistics theme
Nilesh Shah, Managing Director, KMAMC, said, “With the launch of the Kotak Transportation & Logistics Fund, we provide investors an opportunity to participate in India’s rapidly transforming transportation and logistics theme. This growth is fuelled by rising vehicle ownership, the shift from fossil fuel engines to electric vehicles, and increasing per capita GDP.”
“Major government initiatives like Bharatmala and GatiShakti will enhance efficiency and expand business opportunities in the logistics Industries. With India’s expanding manufacturing Industry, the transportation and logistics industry is set for significant expansion,” he added.
Harsha Upadhyaya, Chief Investment Officer – Equity & Fund Manager, KMAMC, said, “The transportation and logistics theme stands to benefit from multiple tailwinds, including growing consumption, increasing per capita GDP, and the growth of e-commerce, auto, and auto-ancillary businesses. The government’s focus on reducing transportation costs by creating an efficient logistics network will not only aid sector growth but also attract new players.”
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