5 Minutes Read
Kotak Mahindra MF lowers SIP amount to ₹28 for four funds — what this means for investors
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
Listen to the Article (6 Minutes)
Summary
With the reduced threshold, more individuals may find it feasible to initiate or increase their investment contributions, thereby fostering greater participation in the market.
Kotak Mahindra Mutual Fund has announced some adjustments to its systematic investment plan (SIP) amounts for four of its flagship funds, effective from April 22, 2024.
The funds affected by this change include:
- Kotak Gold Fund.
- Kotak Multicap Fund.
- Kotak Multi Asset Allocation Fund.
- Kotak Nifty 200 Momentum 30 Index Fund.
Investors will witness a reduction in SIP amounts, with daily frequencies now as low as ₹28, down from the previous ₹100.
This means mutual fund investors can now invest a minimum of ₹28 per day via SIP in these schemes.
For investors, this adjustment in SIP amounts presents both opportunities and considerations.
On one hand, the lowered entry barrier may attract new investors who were previously deterred by higher SIP amounts.
With the reduced threshold, more individuals may find it feasible to initiate or increase their investment contributions, thereby fostering greater participation in the market.
Additionally, the daily frequency of SIPs enhances the flexibility for investors, allowing them to incrementally invest smaller amounts at regular intervals.
This approach aligns with the principle of rupee cost averaging, potentially mitigating the impact of market volatility and offering a disciplined investment strategy over the long term.
However, investors should also exercise caution and conduct thorough research before making any investment decisions.
While the lowered SIP amounts may seem appealing, it’s essential to evaluate the performance track record and underlying fundamentals of the respective funds.
Factors such as historical returns, fund objectives, portfolio composition, and market conditions should be carefully assessed to ensure alignment with individual investment goals and risk tolerance.
Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout
3 Mins Read
Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter
Daily Newsletter
