Kotak Optimus Aggressive Scheme Class A

Kotak Optimus Aggressive Scheme Class A : Investment Journey

Journey with Kotak Optimus is a four-step journey. The journey continues as:

Step 1 Selecting the desired portfolio from aggressive or moderate.

Step 2 Investing in the weekly entry that is every Wednesday and Friday

Step 3 Monthly reviewing through performance and factsheets.

Step 4 Redemption on the last Tuesday of the month

The events that transpired over the last 2-3 years have increased market volatility, with cycles getting shorter. Covid, Geopolitical tensions, and inflation have been the key drivers to the same and led to correction across asset classes. From an investor standpoint, one is looking at how to manage personal wealth and investment portfolios to navigate these turbulent times.

Looking at investors’ needs and the requirement to be nimble-footed in the markets in such volatile times, Kotak introduced the next wave of disruption in managing investors’ wealth – a Discretionary Investment Solution through Kotak Optimus that institutionalized each investor’s investments. Launched in December 2019, Kotak Optimus has over 1000 investors with an AUM of 3019 Cr as of October. We are also proud of the fact that 65%+ investors have re-invested with us during the course of their investing journey. We have seen the pie of discretionary investing rising globally over the last few years, and it is also percolating gradually in India.

Optimus was launched as a Category 3 AIF under the aegis of KIAL (Kotak Investment Advisors Limited). KIAL manages $ 6.27Bn of assets across its business verticals, including Private Equity, Real Estate, Infrastructure, Special Situations, Performing Credit, and Discretionary Strategies. Optimus has a portfolio approach. It is a multi-asset, multi-manager solution that has tenets of wealth management ingrained within – asset allocation, diversification, rebalancing, tactical calls, and risk management framework

Kotak Optimus is available to invest with a minimum investment of 1 Cr. Construction of a similar portfolio, which gives access to multiple PMS managers, would require ~6-10 Cr worth of investment in aggressive and moderate risk profiles, respectively. With some of the best advisors across the industry offering their expertise to the portfolio, investors don’t need to open any demat accounts to invest in Kotak Optimus. It eliminates the operational hassle to a great extent

The investment Philosophy of the fund is to attain capital appreciation and income such as interest, dividends. The fund also aims to achieve aggressive appreciation of assets by allocating majority investments to equity instruments and remaining investments to debt instruments. The fund carries the investment activity of a Category III AIF as permissible under the AIF Regulations.

The investment objective of the Fund will be to carry on the investment activity of a Category III AIF as permissible under the AIF Regulations, so as to achieve capital appreciation and income such as interest, dividend etc. from such investments and also to achieve aggressive appreciation of assets by allocating majority investments to equity instruments and remaining investments to debt instruments.

Structure of Optimus strategy

The investment objective of the Fund will be to carry on the investment activity of a Category III AIF as permissible under the AIF Regulations, so as to achieve capital appreciation and income such as interest, dividend, etc. from such investments. The investment objective of the Fund is to achieve an aggressive appreciation of assets by allocating majority investments to equity instruments and remaining investments to debt instruments.

1. 1. Asset Allocation: a Multi-Asset, Multi-Advisor Solution built on the principles of Asset Allocation. Diversified portfolio across Equity, Fixed Income, and Alternates (REITs & InVITs). ~92% of the success in investing is determined by having the right mix of assets
   2. Risk Profile-based Portfolios: You can pick between Moderate and Aggressive profiles
   3. Disciplined Investing: Tackles emotions of greed and fear better due to the discretionary nature of funds. Processes & investment policies in place make it an efficient way to address human biases
   4. Rebalancing with Auto Portfolio Adjustment: Process-based investment framework for asset allocation, product selection, rebalancing, and tactical allocation – adjust weights of a strategy, strategy shifts with institutional oversight, and become a source of alpha generation. Built-in ability to respond in real-time to market cycles by going over-weight and under-weight an asset class, leading to a smoother journey and potentially better performance
   5. Reduced Operational Hassle: No need for multiple demat accounts, documentation, and accounting
   6. Timely Execution: With the fund management team having complete oversight of the portfolio at all points in time, the execution of investment decisions is instant, thus avoiding the opportunity cost associated with delayed execution