29 Aug 2022
Investing can help one with their financial goals.
But when making an investment decision, there are several factors that need to be considered – the duration for which one can remain invested, their risk profile, the kind of returns expected, asset allocation and the amount and frequency with which they can invest.
Let’s talk about risk appetite and asset allocation today.
Investors can have different risk-taking capacities – some could be conservative, some could be neutral and some could be aggressive. They could also have preferences for the asset class in which they want to invest – debt or equity, or a combination of the two.
Today, we bring to your attention three products which not only invest in both debt and equity, but could also suit your risk appetite.
(An open-ended Dynamic Asset Allocation Fund)This fund can invest 65-100% in Equity and Equity related securities and upto 35% in debt securities and money market instruments.* It changes its allocation between debt and equities based on market conditions. Can be considered for investments by all kinds of investors – whether new to investing, experienced, or those in for the long run.
(An open-ended hybrid scheme investing predominantly in debt instruments)This fund invests 75-90% in debt and money market instruments including government securities. It has moderate exposure to equity and equity-related instruments, as it can invest 10-25% in equity and equity-related instruments#. It can be considered by conservative investors.
(An open ended scheme investing in equity, arbitrage and debt)
This fund too, dabbles between both debt and equity, and can invest 65-90% in equity and equity-related instruments, including derivatives. It can invest 10-35% in debt and money market instruments (including the margin for derivatives). ^It aims to generate income from arbitrage opportunities in the equity market & long term capital growth, and is treated similar to equity funds for tax purposes.
* Source – Scheme Information Document (“SID”), Kotak Balanced Advantage Fund
# Source – Scheme Information Document, Kotak Debt Hybrid Fund
^ Source - Scheme Information Document, Kotak Equity Savings Fund
This is not intended for distribution or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. The distribution of it, in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this material are required to inform themselves about, and to observe, any such restrictions. Past performance may or may not be sustained in future. Refer SID of the respective scheme(s) for detailed and complete asset allocation. Investors should consult their financial advisors if in doubt about whether the product is suitable for them before investing.