KOCHI: Kotak Mahindra Old Mutual Life Insurance launched child plans, under the brand name "Head Start," two weeks ago, along with a "Dynamic Floor Fund," which, it says, dynamically allocates funds between equity and debt assets based on a proprietary algorithmic model.

The company, which started its Kochi operations about two years ago, plans to aggressively grow in Kerala, Gaurang Shah, managing director, says. Kotak Mahindra Bank, its holding company, has branches in Kochi and Kottayam.

Mr. Shah says the company offers unit-linked plans, in which it can invest in equity funds up to 80 per cent and yet promises return of premiums.

The "Dynamic Floor Fund" aims to protect from the downside in unit prices, and thereby, ensures that the investor is provided expertise in allocating assets between equity and debt.

Mr. Shah says by that March 2007, branches will be opened in Kozhikode, Thrissur and Thiruvananthapuram.

Mayur Ankolekar, vice-president, alternative channels (southern region), of the company, says it is having a five per cent market share in life insurance, with a customer base of 17 lakh.

It has presence in 40 cities and hopes to establish offices in all district headquarters in Kerala during the next couple of years. Taking into consideration the inflation rate, a benchmark return of five per cent, along with inflation rate, is paid back to the investors. and there is an added advantage of the net asset value not falling below a particular percentage, he adds.

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