As a first step, the asset management company (AMC) has decided to eliminate the 5-day lock-in period associated with its K-Gilt saving plan, corporate and institutional investors will now have an additional avenue to park short-term funds without the credit risks normally associated with investing in corporate paper.

Incidentally, K-Gilt scheme is the first government securities fund in India, according to Shekkar Sathe, CEO, Kotak Mahindra Asset Management Company. Kotak Mahindra Mutual Fund has withstood the recent phase of volatility in the gilt market extremely well .

In addition, KMMF has reduced the exit load from 1 per cent to 0.5 per cent for exits without giving redemption notice under the K-Bond scheme's wholesale plan.