Debt category schemes are observing a huge inflow of investors, and the main reason behind that is the current market volatility. These schemes are less riskier than equity schemes as they don’t have anything to do with the equity market and only invest in debt and money market instruments, which posses very low chances of failure. In this article, we are going to discuss some best debt category schemes from Kotak Mutual Fund that you can choose from to stabilize your investments. Kotak Low Duration Fund
A low duration debt fund launched on Mar 06, 2008, with the objective to provide capital appreciation by investing in debt and money market instruments which have a maturity period ranging between 6 and 12 months. The scheme does not have a lock-in period so you don’t have to worry about the liquidity of your money. The scheme has provided returns of 6.51%, 7.97%, and 8.56% in 1, 3, and 5 years respectively (as on Jul 24, 2018), which are comparatively good from other low duration funds. It currently has a NAV of Rs 2164.76 (as on Jul 24. 2018) and is managing an asset size of Rs 5,053 crores (as on Jun 30, 2018). The minimum amount required to start an investment in this scheme is Rs 5000 and a SIP can be started for as low as Rs 1000. Kotak Medium Term Fund This scheme was launched on Mar 21, 2014, under the debt medium duration category. The objective of this scheme is to provide reasonable returns to investors by investing in a mix of debt and money market instruments with medium maturity period. It invests mainly in bond and debentures with different credit ratings. Currently, it has 54.14% investment in AA rated instruments, 21.02% in AAA rated instruments, 19.79% in A and below instruments and the remaining 3.97% in cash and cash equivalents. This Kotak MF has provided returns of 4.55%, and 8.07%, in 1, and 3 years, respectively (s on Jul 24, 2018), and has successfully beaten its benchmark, which has provided returns of 2.80% and 8.07% in the same time frame. As on Jul 24, 2018, the scheme has a net asset value of Rs 14.55 and the assets under management as recorded on Jun 30, 2018, are worth Rs 4,677 crores. Also, if you redeem your investments before completion of 540 days, then an exit load of 2% will be charged. The scheme also has an expense ratio of 1.7% (as on Jun 30, 2018) which will be charged annually from your principal amount. Kotak Money Market Scheme Fund This is a debt: money market category scheme launched by Kotak Mutual Fund on Jul 14, 2003, with the objective to provide growth in wealth by investing predominantly in money market instruments. The scheme invests majorly in commercial papers and certificate of deposits with an A1+ rating and above. It has given returns of 6.93%, 7.30%, and 8.11% in 1, 3, and 5 years, respectively (as on Jul 24, 2018) and has successfully beaten its benchmark. Currently, Kotak Money Market Scheme NAV is Rs 2907.50 (as on Jul 24, 2018) and is managing an asset size of 6,529 crores (as on Jun 30, 2018). As for the annual expenses, the scheme charges an expense ratio of 0.20%, and there are no entry and exit load charges. The minimum amount required to start an investment in this scheme is Rs 5000 and you can start a SIP for a minimum of Rs 1000.
So, these are all the best debt schemes that you can make an investment in 2018. New investors can also make an investment in these schemes as the risk associated with them is really low. But one thing that should be kept in mind is that all the above schemes are from debt category so you cannot expect over the top returns from them.