Kotak Mahindra launches 'wealth builder' scheme

Kotak Mahindra Mutual Fund has launched its Kotak Wealth Builder I scheme.

The Wealth Builder scheme, a structured product, is a close-ended debt scheme with 36 months maturity and is rated CRISIL AAA (so).

The objective of the scheme is to generate income by investing in the debt and money market instruments and to generate capital appreciation by investing in equity derivatives.

According to Sandesh Kirkire, CEO, Kotak Asset Management Company Wealth Builder scheme is an answer to dilemma on market directions and uncertainties faced by the common investor everyday.

There is a need for a new class of instruments, which gives returns in all types of market conditions and the new scheme is one of the few schemes, which address this need of investors.

A portion of the scheme's corpus, he said, would be invested in AAA rated debt instruments or equivalent, thus, significantly reducing default risk. The remaining amount will be invested in equity derivatives to generate capital appreciation.

The scheme opened on January 2 and ends January 31.