Publish Date:
Kotak Mahindra Mutual Fund has introduced a new scheme – Kotak Nifty India Consumption ETF
It is an open-ended scheme replicating/tracking NIFTY India Consumption Index.
The investment objective of the scheme is to replicate the composition of the NIFTY India Consumption Index and to generate returns that are commensurate with the performance of the NIFTY India Consumption Index, subject to tracking errors. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.
Under normal circumstances, Kotak Nifty India Consumption ETF will hold an allocation of 95% to 100% of its assets in Equity and Equity related securities covered by the NIFTY India Consumption Index, and 0% to 5% in Debt & Money Market Instruments.
As per the Scheme Information Document, to achieve the investment objective, the scheme will follow passive investment strategy with investments in stocks in the same proportion as in NIFTY India Consumption Index. The investment strategy would revolve around reducing the tracking error to the least possible through rebalancing of the portfolio, taking into account the change in weights of stocks in the index as well as the incremental collections/redemptions from the Scheme.
A small portion of the net assets will be held as cash or will be invested in debt and money market instruments permitted by SEBI/RBI including TREPS or in alternative investment for the TREPS as may be provided by the RBI, to meet the liquidity requirements under the Scheme.
Kotak Nifty India Consumption ETF’s performance will be benchmarked against NIFTY India Consumption Index (Total Return Index)
The fund will be managed by Mr Devender Singhal, Mr Satish Dondapati and Mr Abhishek Bisen.
The NFO opens for subscription on July 25, 2022 and closes on July 27, 2022. The scheme will reopen for continuous sale and repurchase on August 04, 2022.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.
The Scheme does not offer any Plans/Options for investment.