Is Kotak Low Duration Fund Good for 3 Month Investment?

Read the article which is providing the details of Kotak Low Duration Fund, if you want to invest your corpus for a short-term in the mutual funds. In this year, the debt category mutual funds have faced many uncertainties in the money market, and there are possibilities of the rate hike by the Reserve Bank of India (RBI). Therefore, most the mutual fund advisors are still asking investors to avoid taking a risk in the long-term debt funds and park their money in short duration schemes. Many schemes are there under this category, and one of the best among them is Kotak Low Duration Fund. It is good for the investors who want to invest their idle capital for 3 to 12 months in mutual funds for growth. Why Invest in Kotak Low Duration Fund? There are many reasons why one should give exposure to their capital in the fund. These reasons are listed below: 1. The fund has the capability to provide high returns to the investors as compared to fixed deposits and other traditional investment instruments. rn2. The fund keeps high liquidity in the portfolio, and if you are investing for a short duration, you can exit with 0% exit load.rn3. It invests its corpus in the instruments which have high credit quality and does not get affected much by the changing repo rates. Therefore, they are the least risky and keep your capital safe. rn4. There is a risk growing in the NBFCs as we have seen in September and October when the papers of IL&FS has also defaulted. Many NBFCs have grown to lend to real estate developers who are in trouble and are re-financing their loans every time which is affecting them. Therefore, you should stay away from the long-term debt funds. rnSo, if you are thinking of making an investment in Kotak Low Duration Fund G, you can go for it, as the fund will provide a good percentage of returns in a short-term. Magnificent Returns Kotak Low Duration Fund- Growth Plan has been providing high returns to the investors, no matter if they invest for a short-term or long-term. The fund has always managed to outperform benchmark as well as the category all these years to be the best in the category. These returns can also be seen in the table provided below when the fund has given good returns to the investors. Not only this, the fund has managed to outperform its benchmark as well as a category from the year of launch. It has given high returns to its investors all these years with a CAGR of approximately 7% since launch, i.e., March 2008. Credit Expertise Fund Management Team The fund manager Mr Deepak Agrawal and his team hold an expertise in providing low credit risk and high returns to its investors. Currently, it is investing in the AA-rated instruments mainly in the form of bonds, debentures, commercial papers, and zero coupon bonds. This shows that the team does not discount the downside risks. It perfectly recognises the credit and liquidity risk to invest in such papers which provide substantial inflow as well as outflow of cash. The management team of Kotak Low Duration Fund- Regular Plan performs intensive research on the credit quality of the companies before investing in it. This has helped the fund to provide good returns to the investors even in the risky situations and stay positive. So, if you are thinking of parking your capital in Kotak Low Duration for a period of 3 months or more, you can go for it. The fund will provide you with the returns of approximately 2% in the period.