The Kotak Energy Opportunities Fund – Direct (G) is an open-ended equity scheme focused on the energy sector, investing in companies engaged in petroleum, gas, and power. The scheme aims for long-term capital appreciation but does not guarantee returns. It is benchmarked against the Nifty Energy TRI and offers daily liquidity with NAV disclosures on Kotak MF and AMFI websites by 11:00 PM. Redemption proceeds are processed within three working days, while IDCW payments are dispatched within seven working days. Investors seeking sectoral exposure in energy can consider this fund.

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Investment Objective and Strategy

Objective:

The investment objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities of companies engaged in Energy and Energy related activities. However, there is no assurance that the objective of the scheme will be achieved.

Investment Strategies:

The Kotak Energy Opportunities Fund – Direct (G) aims to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities of companies engaged in and/or expected to benefit from the growth in Energy (Traditional/New) and allied sectors & activities. The Energy theme encompasses industries involved in the exploration, extraction, production, refining, marketing, distribution, consultation and sale of energy resources. Traditional energy includes but is not limited to sources of energy such as crude oil, natural gas, coal and new energy refers to renewable energy such as hydropower, solar, wind among others. The investment strategy will be active in nature. The Indicative list of Basic industries/segments falling under the theme are as follows:

1. Offshore Support Solution Drilling
2. Power Distribution
3. Power Generation•Integrated Power Utilities
4. Trading –Gas
5. Trading -Coal
6. Power -Transmission•Lubricants
7. Oil Equipment & Services•LPG/CNG/PNG/LNG Supplier
8. Refineries & Marketing
9. Coal
10. Oil Exploration & Production
11. Gas Transmission/Marketing
12. Oil Storage & Transportation

Power Trading In addition to the above, the Scheme can also invest in domestic/ overseas securities of companies that are engaged in energy allied sectors including but not limited to Chemicals & Petrochemicals companies, industrial & capital goods companies that are engaged in energy consultancy, manufacturing pipelines used in energy sector, manufacturing electrical equipment’s for production, transmission & distribution of energy, companies engaged in bio energy value chain, companies making components of new energy, ancillary companies in power transmission & distribution space.

The Fund Manager will have the discretion to invest in all those sectors / areas which are engaged either directly or indirectly in the traditional & new energy sectors. The Fund Manager may add other sectors or stocks as may be added in Nifty Energy Index (TRI) and AMFI industry classification list issued from time to time.

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What are the risk associated with this Kotak Energy Opportunities Fund – Direct (G)?

The Kotak Energy Opportunities Fund – Direct (G) will be largely affected by the risks associated with Energy and related stocks. The Scheme will mainly invest in Energy (Traditional/New) and allied sectors & activities thereby limiting its exposure to Energy Theme. This will limit the capability of the Scheme to invest in other themes.

• The scheme will be subjected to concentration risk as the fund is mandated to invest in particular theme. This may result in the Portfolio NAV to be more volatile as compared to a diversified portfolio.

• Accordingly, the scheme may also face a relatively higher liquidity risk owing to larger concentrations in their exposures in the event of any significant redemptions occurring in the scheme.

• Owing to high concentration risk for thematic scheme, risk of capital loss is relatively high.

• Also, as with all equity investing, there is the risk that companies in Energy theme will not achieve its expected earnings results, or that an unexpected change in the market or within the company may occur, both of which may adversely affect investment results. Thus, investing in a theme specific fund could involve potentially greater volatility and risk.

What type of Investors should invest in this Kotak Energy Opportunities Fund – Direct (G)?

•  Long term capital growth,

• Investment in portfolio of predominantly equity& equity related securities of companies engaged in Energy and Energy related activities.