Description

KOTAK Mahindra Asset Management announces scheme name changes and re-categorization for six Fund of Fund schemes effective August 30, 2025.

Summary

KOTAK Mahindra Asset Management Company Limited announces scheme name changes and re-categorization for six Fund of Fund (FoF) schemes following SEBI’s new framework for FoF schemes with multiple underlying funds. The changes aim to enhance transparency, risk alignment, and investor understanding.

Key Points

  • Six KOTAK Fund of Fund schemes will be renamed and re-categorized effective August 30, 2025
  • Changes comply with SEBI circular SEBI/HO/IMD/IMD-RAC-1/P/OW/2025/4102/1 dated February 6, 2025
  • Implementation follows AMFI communication dated June 30, 2025
  • Board approval obtained from both KOTAK Mahindra Asset Management Company Limited and KOTAK Mahindra Trustee Company Limited
  • Changes focus on sub-categorization and alignment of key features

Regulatory Changes

  • New Framework for launching Fund of Fund schemes with multiple underlying funds introduced by SEBI
  • Enhanced transparency requirements for FoF structures
  • Improved risk alignment and investor understanding mandates
  • Scheme categorization updates to reflect actual investment strategies

Compliance Requirements

  • Asset Management Company must implement approved scheme name changes by effective date
  • Updated scheme documentation and disclosures required
  • Investor communication regarding name changes
  • Platform updates on BSE StAR MF system

Important Dates

  • August 30, 2025: Effective date for all scheme name changes and re-categorizations
  • February 6, 2025: SEBI circular issuance date
  • June 30, 2025: AMFI communication date

Impact Assessment

Market Impact: Minimal - purely administrative changes with no effect on underlying investment strategies or portfolio composition.

Operational Impact: Low - requires system updates on BSE StAR MF platform and documentation changes.

Investor Impact: Negligible - no change to investment objectives or portfolio management, only naming convention updates for better clarity and regulatory compliance.

Impact Justification

Administrative scheme name changes with no operational impact on trading or investor positions