Kotak Nifty 50 Index Fund Review

Updated: Jun 6, 2021

Kotak Mutual Fund has launched a new fund offer (NFO) of Kotak Nifty 50 Index Fund. It is open will from May 31 to June 14, 2021


Investment Objective

The investment objective of the scheme is to replicate the composition of the Nifty 50 and to generate returns that are commensurate with the performance of the NIFTY 50 Index, subject to tracking errors. However, there is no assurance that the objective of the scheme will be realized.


Benchmark

Nifty 50 Index TRI

The Nifty 50 Index TRI constitutes the top 50 Indian companies (by market cap) listed on the National Stock Exchange (NSE).


Allocation

Particulars Allocation Risk Profile Equity and Equity related securities covered

by the Nifty 50 including Derivatives* 95%-100% Medium to High Debt and Money Market Instruments# 0%-5% Low to Medium


*The fund will invest in equity derivatives of the index or the stocks listed on the index only when shares are unavailable, insufficient or for rebalancing in case of corporate actions for a temporary period among other situations. The gross position to such derivatives will be restricted to 10% of net assets of the mutual fund scheme

# Money Market instruments include commercial papers, commercial bills, treasury bills, government securities having an unexpired maturity up to one year, certificate of deposit, and any other like instruments as specified by the Reserve Bank of India.


Fund Details

Suitability - This product is suitable for investors who are seeking

  1. Long-term capital growth

  2. Returns that are commensurate with the performance of NIFTY 5OIndex subject to tracking error

 




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