May 9th, 2008
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Kotak Mahindra (UK) Limited (KMUK), a 100 % subsidiary of India’s Kotak Mahindra Bank Limited announced the launch of the Kotak India Dynamic Fund whose objective is to generate an absolute return of 20% per annum irrespective of market direction and to minimise monthly downside volatility.
On the occasion of this announcement, Paul Parambi, Head - International business of Kotak Mahindra Bank Limited said, “A US$ 1+ trillion economy, India is forging ahead at a potential real GDP growth of 8% per annum and the Indian capital markets have mirrored this.
Over the last 5 years, the Indian equity markets have grown at a CAGR of 31%. However, this growth has not been devoid of volatility. The markets have increasingly gotten volatile leading to sharp corrections and to subsequent dynamic changes in sector and market capitalization leadership throwing open many investment opportunities. The Kotak India Dynamic fund aims to take advantage of these opportunities.”
We spoke to R. Rajagopal, the Principal Investment Manager “The primary strength of the fund’s investment strategy is that it is multi-dimensional and adaptive to different stages of the market cycle. We will use a mix of varied strategies like Core Equity, Long/ Short Equity, Limited Risk, and Cash/Arbitrage with a view to generate an absolute positive under different market conditions. We are a team of 3 fund managers who will manage this fund with research support from an in-house analyst team and sell side analysts of other brokerage houses”
This is a capital-at- risk fund and is subject to the normal risks associated with investment in India including, but not limited to, high market volatility, variable market liquidity, geopolitical risks (including political instability), exchange rate fluctuations (USD/INR), changes in tax regime and restrictions on investment activities of foreign investors.
About KMUK
Incorporated in the United Kingdom and authorized & regulated by the Financial Services Authority in the United Kingdom, KMUK offers ‘India-specific’ investment solutions globally with a range of products including Equity Funds and Managed Accounts. KMUK is a member of the London Stock Exchange and is registered with the Securities Exchange Board of India as a Foreign Institutional Investor (FII).
http://investindia.kotak.com
About Kotak group
The Kotak Group is one of India’ leading financial services conglomerates with significant presence in various businesses including commercial banking, stock broking, asset management, life insurance, retail banking and investment banking.
www.kotak.com
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