Kotak Mutual Fund Launches Nifty India Tourism Index Fund focused on India’s booming Tourism Sector
Kotak Mutual Fund has launched a new fund, namely Kotak Nifty India Tourism Index Fund, a scheme that replicates/tracks the Nifty India Tourism Index.
This NFO is open for subscription to investors with immediate effect and shall remain open till September 16. The scheme will reopen on or before September 30.
Basically, it would attempt to generate returns that are in line with the total returns of the securities forming part of the underlying index minus expenses, if any, and subject to tracking error. In this regard, the fund shall be benchmarked to the NIFTY India Tourism Index-Total Return Index. This fund would be managed by experienced personnel such as Devender Singhal, Satish Dondapati, and Abhishek Bisen.
It is also available as a regular and direct plan and offers growth and Income Distribution cum Capital Withdrawal (IDCW) options. Investors can invest with a minimum investment of Rs.100 in the form of a lump sum or SIP and thereafter no upper limit for further investment.
The Scheme would invest 95-100% of its assets in equities and related securities forming part of the Nifty India Tourism Index, while the remaining 0-5% may be invested in debt or money market instruments.
The Scheme would follow a passive investment strategy to achieve the investment objective. Accordingly, investments would be made in equity securities in the same proportion as they are represented in the Nifty India Tourism Index. This is directed towards achieving a minimal tracking error by rebalancing the portfolio based on any change in the index and declaring new entries and exits from the scheme.
The fund provides an opportunity for investors to take part in the rapid growth and evolution of tourism in India, facilitated by changing travel trends and improvement in infrastructure. It has been specially devised to provide exposure to the panoramic growth of the tourism industry within the country, encompassing airlines, hospitality, and transportation. It is being projected as an inexpensive index-based way of reaping returns from the long-term potential of the tourism industry.
This scheme is good for investors aiming at long-term capital growth with returns matching the performance of the Nifty India Tourism Index, set under the “very high” rating according to the scheme’s riskometer.
