Kotak Mahindra Asset Management has launched Kotak International REIT fund of funds, which is India's first diversified REIT mutual fund (MF) and will invest in units of the SMAM Asia REIT sub-trust fund.

“This REIT is Asia-Pacific REIT which means that we can enjoy the growth of Asia-Pacific regions excluding Japan,” said Katsunosuke Ozawa, Product Specialist-International Marketing at Sumitomo Mitsui DS Asset Management.

“We believe that Indian rupee has a tendency to depreciate. We believe that it is a good timing right now - the overbought situation of a hi-tech stocks everywhere globally has gone up too much and we are seeing the reversal of the so-called high dividend type of products as well as the value-type of products. So you are likely to enjoy the companies on top of that,” Ozawa said.

On underperformance of mutual funds (MFs), Nilesh Shah, MD of Kotak Mahindra AMC, said, “A lot of myth has been spread about underperformance of equity funds. I can show you the data that funds are not underperforming benchmark indices if you measure them correctly."

"The redemptions are coming in equity MFs across variety of spectrum, there is profit booking by institutional investors led by pension funds, there is also selling by high networth individual (HNIs) investors, also redemption in hybrid funds. The silver lining among the dark clouds is launch of our NFO of Kotak ESG opportunity fund. When industry witnessed Rs 13,000 crore of outflows, we collected Rs 1,400 crore of flows from about 49,000 investors and over 8,000 distributors sold our fund.”

For entire discussion, watch video…

(Edited by : Bivekananda Biswas)

First Published:Dec 8, 2020 4:11 PM IST