Kotak World Gold Fund & Kotak US Equity Fund merge into Emerging Markets fund

While investing in Emerging Markets, Kotak Mutual Fund has made announcement of a merger between Kotak World Gold Fund and Kotak US Equity Fund into a third scheme.

Launched in June 2008, Kotak World Gold Fund invests in gold mining industry all over the world, whereas Kotak US Equity Fund invests in the US market after it launched in 2013. The two will be merged into Kotak Global Emerging Market Fund with effect from 26th February.

Kotak World Gold Fund has delivered a CAGR return of just 0.44% since inception and has seen its AUM dwindle to Rs 50 crore. Kotak US Equity Fund, on the other hand, has delivered a healthy 10.91% since inception. However, its AUM is also extremely low at just Rs 13 crore.

Kotak Global Emerging Market Fund was launched in September 2007 and has a return since the launch of 4.43%. However, all three schemes have rallied strongly over the past year. The 1-year returns of the Gold, US Equity and Emerging Markets funds stand at 27.21%, 17.22% and 13.32% respectively.

In accordance with the notice issued by Kotak Mutual Fund, investors are allowed to exit from the scheme without paying exit load by 25th February. “The Gold and US equity funds are feeder funds into global funds.