Sathe said, Kotak Mahindra had recently launched 10 close-ended funds under the open-ended umbrella of its K-Gilt Scheme. Christened K-Gilt 2001-2019, these funds would provide a 10-day window option every month to facilitate easy entry and exit for investors, he said.

``The funds are designed in such a way that they will be completely out of risk till the last day of each fund,'' Sathe said. Kotak would dissolve the fund on the last day of each respective year, he added.

Kotak has recently roped in Citibank, Hongkong Bank, Standard Chartered and Bank of Madura to market the new instruments. The advertising would be carried out directly by Kotak Mahindra, he said.

Sathe said these funds were right away open for investments and investors had the option of monthly redemption. According to Sathe, a return of around 11.65 per cent was been expected from the funds, based on the time of entry.

The company has set an administrative and maintanance cost fee of 0.6 per cent which was a lowest rate, compared to other gilt mutual fund schemes, Sathe added.