NFO Alert: Kotak Mutual Fund Introduces Two Index Fund
Kotak Mutual Fund has recently launched two index funds. The names of the funds are Kotak Nifty 50 Equal Weight Index Fund and Kotak Nifty 100 Equal Weight Index Fund.
Kotak Mutual Fund’s latest schemes will open for subscription in an NFO from December 2 to December 16. The schemes will reopen for repurchase and continuous sale on December 30.
SIP and lump sum investment minimum application amount in these schemes is Rs.100 and any amount thereafter. The scheme will be managed by a team of experienced professionals – Devender Singhal, Satish Dondapati, and Abhishek Bisen.
Kotak Nifty 50 Equal Weight Index Fund
It is an open-ended scheme that tracks and replicates the Nifty 50 Equal Weight Index. The scheme will use the Nifty 50 Equal Weight Index as its benchmark. This scheme will invest at least 95-100% in equity and equity-related securities present in the 50 Equal Weight Index, and 0-5% will be invested in debt and money market instruments.
To achieve the investment goal, this scheme will adopt a passive investment strategy, investing in the same proportion as the Nifty 50 Equal Weight Index. The investment strategy will revolve around decreasing the tracking error by rebalancing the portfolio, considering into account the changes in stock weights within the index as well as the impact of incremental redemption or collection from the scheme.
Kotak Nifty 100 Equal Weight Index Fund
It is an open-ended scheme that tracks and replicates the Nifty 100 Equal Weight Index. It is an open-ended scheme that tracks and replicates the Nifty 100 Equal Weight Index. This scheme will invest at least 80-100% in equity and equity-related securities present in the 100 Equal Weight Index, and 0-5% will be invested in debt and money market instruments.
To achieve the investment goal, this scheme will also adopt a passive investment strategy, investing in the same proportion as the Nifty 100 Equal Weight Index. The investment strategy will revolve around decreasing the tracking error by rebalancing the portfolio, considering into account the changes in stock weights within the index as well as the impact of incremental redemption or collection from the scheme.
