Kotak Cherry, an investment management app of Kotak Investments, has announced that it will host a mutual fund (MF) basket from India’s top mutual funds placed on its platform. Kotak Cherry is an open architecture platform for investors to invest in stocks, stock baskets, futures and options. It allows investors to trade through their trading account registered with any broker. Asset Management Companies (AMCs) or fund houses can host their MF baskets on the platform.
MF Basket is a combination of mutual fund schemes offered by AMCs. Their objective is to reduce the hassle of selecting a suitable scheme from the bouquet of schemes provided. Clients can invest in MF baskets offered on the Kotak Cherry platform using an amount as small as Rs 1,000.
The company claims that its recent technological innovation will allow customers to choose MF with a single click. They will also have the option of investing in the MF basket through a Systematic Investment Plan (SIP) or lump sum investment, or both as per their requirements.
Commenting on the development, Kotak Cherry CEO Srikanth Subramaniam said that experience shows that “most investors do not buy a single scheme but prefer to buy multiple funds for diversification. MF Baskets not only solve these challenges”. Rather, it encourages clients to diversify their investments by exploring its unique features from leading asset management companies.
Kotak Cherry currently offers six types of MF Baskets. It also includes:
Forever Portfolio: A mixed asset portfolio consisting of gold, silver, equities and debt.
Active Passive Combo: Combination of mid-cap and large fund.
Large Cap Leaders: A game of pure equity on the country’s largest firms.
Terrific Duo: A mix of low-volatility MFs and high-momentum funds.
Stay Desi, Go Global: The best global and domestic companies in one fund.
Fixed Income Beater: A diversified basket of AAA-rated public sector undertaking (PSU) bonds and state development debt (SDL) funds that help preserve capital.
To invest in any MF basket, the user needs to log in to the Kotak Cherry app and choose the mutual fund basket to invest in based on his/her requirements. Each basket contains a combination of mutual fund schemes. It can be invested through SIP or lump sum. Once the payment process is complete, investments are made in the mutual fund basket through Kotak Cherry.
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