Kotak Mutual Fund will launch Kotak Balanced Advantage Fund, an open-ended dynamic asset allocation fund on July 13, a press release from the fund house said.
The scheme will follow a multi-cap approach for an equity allocation and dynamic bond approach for debt allocation.
The investment model would keep net equity exposure low when the market valuations are high and vice versa.
The scheme will deploy at least 65 percent of its assets in equity andÂ equity-related securities. The net equity exposure can be brought down significantly below 65 percent by hedging through equity derivatives.
The scheme also has the provision to invest in debt and money market instruments.