Kotak Mahindra MF launches Manufacture-in-India scheme
- IBEF
- February 3, 2022
The Kotak Mahindra Asset Management Company (AMC) has announced the creation of the Kotak Manufacture-in-India Fund, which would invest in India's listed manufacturing companies.
Companies that directly engage in manufacturing activities, export goods manufactured in India with the potential to increase employment, firms that benefit from the government's manufacture in India initiatives, businesses that assist in the manufacturing of new-age technology solutions, and companies that invest in new manufacturing facilities are all included, according to the AMC.
The NFO is an open-ended equity scheme that is benchmarked to the Nifty India Manufacturing Total Return index and is available for subscription till February 15th. During the NFO period, the minimum application amount is US$ 5,000.
The manufacturing sector, according to the fund house, will benefit from the phased manufacturing programme, the PLI plan, 100% automatic FDI, tax reduction, single-window clearance, electronic clusters, and import tariff protection.
Mr. Nilesh Shah, Kotak Mahindra Asset Management Company's Group President and Managing Director, stated, "In the 1980s, India missed the manufacturing bus. We excelled in services such as software to become the world's back office. With China+1 becoming a geopolitical necessity, this is a good time to strengthen our manufacturing sector and increase our export market share. We anticipate that by issuing this NFO, we will be able to capture this manufacturing renaissance in our portfolios, allowing investors to profit from India's economic storey."
The fund manager also emphasises the theme's danger. It encompasses a variety of factors affecting the Indian economy and corporate sentiment, such as high commodity prices and inflation, which raises the cost of capital, government policy reversals, and geopolitical developments that affect the availability of raw materials and intermediates.
Mr. Harish Krishnan will be in charge of the equity portion of the fund, while Mr. Abhishek Bisen will be in charge of the debt portion.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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