Kotak Cherry, an investment management app of Kotak Investment, has announced that it would host mutual funds (MF) baskets from India’s top mutual fund housed on its platform. Kotak Cherry is an open architecture platform for investors to invest in stocks, stock baskets, futures, and options. It allows the investors to deal via their trading account registered with any broker. Asset Management Companies (AMCs) or fund houses can host their MF baskets on the platform.
MF Baskets are a combination of mutual fund schemes offered by an AMC. Their objective is to cut down the hassle of selecting a suitable plan from a bouquet of the schemes provided. Clients can invest using an amount as small as Rs 1,000 in the MF Baskets offered on the Kotak Cherry platform.
The company claims that its recent tech innovation will allow customers to pick MFs with a single click. They will also have the option to invest in MF Baskets via a Systematic Investment Plan (SIP) or lumpsum investments, or both as per their needs.
Commenting on the development, Srikanth Subramanian, CEO of Kotak Cherry, said that experience shows that “most investors don’t buy a single scheme but prefer to purchase multiple funds for diversification. MF Baskets not only addresses these challenges but also encourages customers to diversify their investments by exploring its unique features from leading Asset Management Companies.”
Kotak Cherry currently offers six types of MF Baskets. This includes:
Forever Portfolio: A mixed asset portfolio comprising gold, silver, equity, and debt.
Active Passive Combo: A combination of a mid-cap and large fund.
Large Cap Leaders: A pure equity play on the nation’s biggest firms.
Terrific Duo: A blend of a low-volatility MF and a high-momentum fund.
Stay Desi, Go Global: The finest of global and domestic companies in one fund.
Fixed Income Beater: A diversified basket of AAA-rated Public Sector Undertaking (PSU) Bonds and State Development Loans (SDL) funds that helps preserve capital.
To invest in any of the MF baskets, a user will have to log in to the Kotak Cherry app and pick a mutual funds basket to invest in based on their requirements. Each basket has a combination of mutual fund schemes. One can invest in it via SIP or lumpsum. Once the payment process is complete, the investment in the Mutual Funds basket via Kotak Cherry is made.