Kotak Standard Multi-cap Scheme re-named as Kotak Flexi-cap Scheme
Kotak Mahindra MF has offered Kotak standard multi-cap fund, emerging equity scheme, balanced advantage fund, tax saver scheme and EQ contra fund. The AMC of Kotak Mahindra is a wholly-owned subsidiary of KMBL. According to the reports, the fund house has moved its multi-cap fund to the newly-created Flexi-cap category. However, the converting move will help the MF retain the portfolio composition.
In its statement, the fund house said that it has plans to re-naming Kotak Standard Multi-cap Scheme to Kotak Flexi-cap scheme. Furthermore, the Kotak Flexi-cap fund had assets of Rs. 32,400 crores as of January 2021. Although, the MF made it one of the largest scheme in the category.
In the last year, the SEBI has introduced a few new norms like multi-cap schemes that could invest up to 25% of the corpus in Large-cap, Mid-cap and Small-cap stocks each. Later, it has designed a new category named Flexi-cap. This category allows fund managers to invest in all three categories of stocks without any minimum limit.
On the other hand, Axis MF, Motilal Oswal MF and PPFAS mutual fund houses have also shifted their multi-cap schemes to the Flexi-cap category. However, as of the new norms, existing multi-cap schemed had to undergo large- scale shake.
Further, the fund managers said that giving a new name to the multi-cap fund as Kotak Flexi-cap Fund provides some resources to the managers to choose between various market capitalization containers.
On the other hand, the scheme may extend to obey the downward sectoral strategy enhanced by bottom-up stock picks. Moreover, the scheme will also remain to take strong sector allocation expanded at a stock level.