Kotak FMP Ser 239 Dir Gr (0P0001E33Y)

Overview

The Scheme is designed with the primary objective of generating returns for its investors by investing predominantly in debt and money market instruments. It seeks to minimize interest rate risk by aligning its investments with the maturity profile of the scheme itself. This implies a strategic focus on instruments that will mature on or before the scheme’s own maturity date, effectively aiming to match cash flows and reduce the potential for valuation volatility due to changes in interest rates. However, it's important to note that the scheme does not guarantee the achievement of its investment objective.

Products and Services

• Debt Instruments

  These are essentially loans made by an investor to a borrower (usually corporate or governmental). The Scheme invests in various forms of debt instruments, with the aim of earning interest income over time, alongside the return of the principal amount at maturity. The chosen debt instruments are aligned with the scheme's maturity profile, to manage and reduce the interest rate risk inherent in such investments.

• Money Market Instruments

  These include short-term debt securities such as treasury bills, commercial papers, and certificates of deposit. The scheme allocates a portion of its portfolio to money market instruments due to their shorter maturities and lower risk profiles compared to longer-term debt securities. This form of investment is utilized by the Scheme to ensure liquidity and manage the scheme’s overall risk, aligning with its aim to mitigate interest rate volatility and preserve capital.