Kotak launches small caps based PMS

15 May 2007

Mumbai: Brokerage firm Kotak Securities will launch a portfolio management scheme (PMS) focused on small cap companies having a market cap of less than Rs2,500 crore.

This will be the first PMS dedicated to smaller stocks by any brokerage in the country.
The scheme called ''Kotak Origin'' will have a long maturity period of 30 months or upto December 2009.

Company officials said there were about 500 companies with a market cap between Rs100 crore and Rs500 crore, 750 companies in the Rs500 crore-Rs1,000 crore market cap and another 200 companies in the market cap of Rs1,000 crore and Rs2,500 crore.

Kotak would invest in 20 to 25 companies out of the 950 companies that would qualify for the scheme.

Kotak Securities is confident of mobilising Rs180 crore through its latest portfolio management scheme.

The minimum amount is set at Rs10 lakh per investor.

Kotak Origin is the second portfolio management scheme of Kotak Securities in the last couple of months. It recently raised Rs150 crore for a scheme aimed at large-cap investing. The scheme, which is looking to invest in a small set of 18 large-cap stocks, is targeted at investors who are risk-averse in nature.