Kotak Technology Fund

Invest for Growth

Frequently Asked Questions

Kotak Technology Fund
An open-ended equity scheme investing in Technology & technology related Sectors.
The investment objective of the scheme is to generate long-term capital appreciation from a portfolio that is
invested predominantly in equity and equity related securities of Technology & technology related sectors. However,
there is no assurance that the objective of the scheme will be achieved.

Q. What are the features of the Scheme?

This is an open-ended sectoral equity scheme by Kotak Mahindra Mutual Fund which will invest minimum of 80% of
its assets in equity and equity related securities of companies engaged in Technology & technology related Sectors.
This will be an actively managed fund which will endeavour for long term capital growth for investors.

Q. Will the fund have Market cap bias?

No, the fund will be Market cap agnostic. Market cap allocation in the fund would be dependent on the preferences
within the Technology & technology related Sectors, depending on market conditions with a flexibility to buy across
all market cap segments.

Q. Why invest in the Kotak Technology Fund?

The scheme aims to generate long-term capital appreciation from a portfolio that is invested predominantly in
equity and equity related securities of Technology & technology related companies.
Here are key reasons to invest in Kotak Technology Fund:
• Technology Tailwinds: New technologies like digital, cloud, and Gen AI are disrupting businesses, increased
consumer tech adoption is also driving growth
• Macro recovery: In the past, rate hikes by global central banks created uncertainty in the tech sector. However,
we are now on the cusp of a macroeconomic recovery as central banks pivot to rate cuts, potentially leading to
renewed strength in the tech sector, driven by pent-up demand.
• Reasonable valuations: Current divergence in sector valuations appears to be in line with the broader market
• Investment Approach: Bottom up stock picking using GARP approach (Growth at Reasonable Price)

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Q. What is the scope of Kotak Technology Fund?
The scheme aims to generate long-term capital appreciation from a portfolio that is invested predominantly in
equity and equity related securities of Technology & technology related companies.
Scope of Investment Includes:
• IT services, including IT management, software, consulting, outsourcing companies.
• Internet technology enabled services including consumer tech, Fintech, e-retail/e-commerce technology
platforms, IoT (Internet of Things) and other digital/online service providers.
• IT products including hardware computers, electronic technology and electronic components like PCs, Laptops,
Servers, Chips, Semi-conductors etc.
• AI, data and data solutions providers
• Electronic Manufacturing Services (EMS)
• IT Infrastructure services including Cloud computing, mobile computing infrastructure, data centers
• Telecommunications, including networking, wireless, and wireline services, equipment and support;
• Media and information services, including the distribution of information and content providers The Fund
Manager may add other sectors as may be added in S&P BSE Teck Index (TRI) from time to time.

Q. How will the scheme allocate its assets?

The asset allocation under the Scheme, under normal circumstances, is as follows:

Indicative
Investments Risk Profile
Allocation
Equity and Equity Related Securities of technology & technology
80%-100% Very High
related sectors
Equity and Equity Related Securities Other than technology &
0%-20% Very High
technology related sectors*
Debt and Money Market Securities#* 0%-20% Low to Moderate
Units of REITs & InvITs 0%-10% Very High
#Debt instruments shall be deemed to include securitised debts (excluding foreign securitised debt) and investment
in securitised debts may be up to 20% of the net assets of the scheme in accordance with clause 1 of Seventh
Schedule of SEBI (Mutual Funds) Regulations, 1996.
#Money Market instruments include commercial papers, commercial bills, treasury bills, Government securities
having an unexpired maturity up to one year, call or notice money, certificate of deposit, usance bills, tri-party repos,
and any other like instruments as specified by the Reserve Bank of India from time to time;
*In accordance with clause 4 of Seventh Schedule of SEBI (Mutual Funds) Regulations 1996 scheme may invest in
the units of Mutual Fund schemes of Kotak Mahindra Mutual Fund or any other Mutual Fund.
The Scheme may invest upto 20% of the net assets in overseas securities including units issued by overseas Mutual
Funds/ETFs or Unit Trusts registered with overseas regulator as may be permissible and described in para 12.19 of
SEBI Master circular no SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, as may be amended from
time to time, within the overall applicable limits. For Detailed Information, For detailed asset allocation and scheme
information, please refer the scheme information document (SID)
During the NFO, the intended amount for investment in overseas securities is US $ 5 Million and the intended amount
for investment in overseas ETFs is US $ 1 Million.
Disclaimer: The asset allocation and investment strategy will be as per Scheme Information Document (SID). The
portfolio of the Scheme is subject to changes within the provisions of the SID of the Scheme. Refer SID of the
Scheme for complete and detailed asset allocation details.

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Q. What is the investment process?
We shall follow our disciplined investment process of BMV i.e. by focussing on Business scalability & sustainability,
Management Quality and Valuation parameters. The Fund will evaluate the business environment that a company
operates in, the capability of the management to execute and scale up the business and valuation of the company
based on fundamentals like discounted cash flows and PE ratios, etc.

Q. Can the scheme invest in IPOs as well?

Yes, the scheme may invest in companies at IPO stage if deemed appropriate.

Q. Who are the Fund Managers of the Scheme?

Ms. Shibani Sircar Kurian will be the fund manager for equity investment of the scheme. Mr. Abhishek Bisen will be
the Fund Manager for debt investment of the Scheme and Mr. Arjun Khanna will be the Dedicated Fund Manager for
investments in foreign securities.

Q. What is the experience of the fund management in handling equity funds?

At Kotak Mahindra Mutual Fund, we have always aimed and strived to add value to our investors consistently in all
funds over the long term not only in lump sum investments but also through SIPs. This has been possible through
our disciplined investment process across various categories, including the thematic and sectoral category. The
fund manager, Ms. Shibani Kurian has more than 15 years business experience with Kotak Mahindra AMC and 20+
years Industry Experience in Indian Equity Markets.

Q. What will the scheme’s performance be benchmarked to?

The scheme performance will be benchmarked to the S&P BSE Teck Index (Total Return Index)

Q. What is the Exit Load of Kotak Technology Fund?

• For redemption / switch out within 30 days from the date of allotment: 1%
• If units are redeemed or switched out on or after 30 days from the date of allotment: NIL
Any exit load charged (net off Goods and Services tax, if any) shall be credited back to the Scheme. Units issued on
reinvestment of IDCWs shall not be subject to entry and exit load

Q. What are the NFO details?

NFO Opens on: Monday, February 12, 2024 and NFO Closes on: Monday, February 26, 2024
The minimum application amount (Non-SIP) Rs. 100/- and any amount thereafter. SIP investment option is also
available.

Q. Who should invest in this fund?

Investors seeking to invest in companies engaged in the Technology & technology related Sectors, aiming and
willing to have a tactical allocation to their overall equity portfolio with a long-term investment horizon.

Q. What will be the Ideal investment horizon?

A long-term investment horizon could be considered as an ideal one for instance 5 years and above. One can invest
through a lump sum or SIP route in this fund.
Source: Scheme Information Document (SID), KMAMC Internal Research

NFO from 12th Feb 2024 to 26th Feb 2024

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 Riskometer
Scheme Benchmark
KOTAK TECHNOLOGY FUND
An open ended equity scheme investing in Technology & technology related Sectors
This product is suitable for investors who are seeking*:
• Long term capital growth.
• Investment in portfolio of predominantly equity & equity related securities of Technology & Technology related sectors.
Investors understand that their principal
Investors understand that their principal
will be at very high risk
will be at very high risk *Investors should consult their financial advisor if in doubt about whether the product is suitable for them.
S&P BSE Teck Index (TRI)

(The product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme Characteristics or model portfolio and same may vary post NFO when actual investments are made)

Disclaimers & Disclosures

The information contained in this document is extracted from KMAMC internal research/different public sources.
All reasonable care has been taken to ensure that the information contained herein is not misleading or untrue at the
time of publication. This is for the information of the person to whom it is provided without any liability whatsoever
on the part of Kotak Mahindra Asset Management Co Ltd, Kotak Mahindra Trustee Company Limited or any
associated companies or any employee, directors thereof.
The sectors mentioned are only for the purpose of understanding the concept. This should not be construed as
futuristic view of Fund Manager for the construction of portfolio. The Fund Manager will construct the portfolio in
accordance with the investment objective, strategy and asset allocation of the scheme.
These materials are not intended for distribution to or use by any person in any jurisdiction where such distribution
would be contrary to local law or regulation. The distribution of this document in certain jurisdictions may be
restricted or totally prohibited and accordingly, persons who come into possession of this document are required to
inform themselves about, and to observe, any such restrictions. Past Performance may or may not be sustained in
the future.

www.kotakmf.com | Toll free number 1800 309 1490 |

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.

NFO from 12th Feb 2024 to 26th Feb 2024

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