Kotak Mutual Funds Launch SIP Scheme with Life Insurance Cover

Kotak Mutual Funds continues its trend of innovation by launching Kotak Star Kid Facility in SIP

This facility will avail the investors’ a Life Insurance Cover

This facility is applicable for two schemes of Kotak Mutual Funds Kotak -30 and Kotak Tax Saver

Age criteria to Avail Kotak Star Kid Facility

Minimum Age of Entry - 23 yrs

Maximum Age of Entry - 45 yrs

Insurance cover upto – 50 yrs

Term – 5, 10, 15 & 20 yrs (60 months, 120 months, 180 months, 240 months)

Age		Tenure
23-30		5,10,15,20
31-35		5,10,15
36-40		5,10
41-45		5
above 45		Not eligible

Minimum SIP Amount: 1000/-

Formula for calculation of Life Insurance Cover

E.g. Amount 5000
5 years (60 months)	10 yrs (120 mnths)	15 yrs (180 mnths)	20 yrs ( 240 mnths)
60 -12 months X 5000 = 240000	120-12 X 5000 = 540000	180 - 12 X 5000 = 840000	240 - 12 X 5000 = 11,40,000

Life insured could be father or mother. Nominee compulsorily would be child only (major or minor).

Features for the Life Insurance cover in Kotak Star Kid Facility are as Follows:

• First month of SIP no insurance cover
• First 3 months only accidental death will be covered
• First 12 months, if death happens 10 times of SIP amount will be paid to the nominee as insurance + total net asset value of SIP paid till date.
• After 12 months if death occurs nominee will get remaining unpaid sip of the tenure + total net asset value of SIP paid till date.
• Medical Test Compulsory above 10 lac cover.
• Maximum cover: 1 core
• Insurance cover will be in reducing manner

Load Structure for the Kotak Star Kid Facility

• Entry Load : 3.25%
• Exit Load : 2% till 2 years
• : 1% after 2 years till 5 years
• SIP in Tax saver will be subject to a 3 years lock-in as per SEBI Regulation