Kotak Mutual Fund Introduces Nifty Commodities Index Fund
Kotak Mutual Fund has introduced the Kotak Nifty Commodities Index Fund, a new investment option following the Nifty Commodities Index. The New Fund Offer (NFO) is open for subscription from today i.e., February 17, 2025, and closes on March 3, 2025.
The scheme will reopen for continuous sale and repurchase on March 18, 2025.
The scheme’s investment aim is to generate returns that, before expenses, correspond to the total returns of the securities represented by the underlying index.
The Kotak Nifty Commodities Index Fund will benchmark against Nifty Commodities Index (TRI) and will be managed by Devender Singhal, Satish Dondapati and Abhishek Bisen.
This fund provides an opportunity for investors to invest in 30 businesses that deals with commodities like oil, metals, mining, cement, power, and chemicals. These businesses play an important role in the development of economic and industries.
As the fund is following the Nifty Commodities Index, the investors can benefit from India’s long-term growth as well as world market trends. Commodities play a significant role in the economy, and India is placing emphasis on infrastructure, this fund provides an opportunity to invest in commodity-based companies at a relatively low cost.
The scheme is intended to offer a mix of stable big companies and mid-sized companies on the rise within the commodity business.
The scheme will invest 95-100% in equity and equity-related securities tracked by the Nifty Commodities Index, with 0-5% in debt/money market instruments.
The scheme is appropriate for investors seeking long-term capital growth and returns that are comparable to the performance of the Nifty Commodities Index, subject to tracking error.
Key NFO Points
- Minimum Investment: Rs.100 and any quantity thereafter.
- Benchmark Index: The Kotak Nifty Commodities Index Fund will benchmark against Nifty Commodities Index (TRI).
- Investment Method: Passive investing in commodity-connected companies.
Experts recommend that investors should keep in mind their risk-taking capacity before investing. Experts also remind investors that past performance does not guarantee future returns.
