Publish Date:
Kotak Mahindra Mutual Fund has launched Kotak Nifty AAA Bond Plus SDL Apr 2026 70:30 ETF.
It is an open-ended target maturity Index Exchange Traded Fund replicating/tracking Nifty AAA Bond Plus SDL Apr 2026 70:30 Index
The scheme will be predominantly investing in the constituents of Nifty AAA Bond Plus SDL Apr 2026 70:30 Index.
The investment objective of the scheme is to replicate Nifty AAA Bond Plus SDL Apr 2026 70:30 Index by investing in bonds of issuers rated AAA and state development loans (SDL), subject to tracking errors. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.
Kotak Nifty AAA Bond Plus SDL Apr 2026 70:30 ETF is mandated to invest 95% to 100% of its net assets in towards replication of Nifty AAA Bond Plus SDL Apr 2026 70:30 Index with deviations as allowed by SEBI. It can invest 0% to 5% of the net assets in cash and debt/money market instruments.
Kotak Nifty AAA Bond Plus SDL Apr 2026 70:30 ETF is a passively managed exchange traded fund which will endeavor to track the Nifty AAA Bond Plus SDL Apr 2026 70:30 Index. Accordingly, the corpus of the Scheme will be invested in Debt Instruments comprising of Nifty AAA Bond Plus SDL Apr 2026 70:30 Index.
As mentioned in the Scheme Information Document (SID), Kotak Nifty AAA Bond Plus SDL Apr 2026 70:30 ETF seeks to track investment results of Nifty AAA Bond Plus SDL Apr 2026 70:30 Index subject to tracking errors.
Kotak Nifty AAA Bond Plus SDL Apr 2026 70:30 ETF will follow Buy and Hold investment strategy in which debt instruments by AAA rated corporate borrowers & state development loans will be held till maturity unless sold for meeting redemptions/rebalancing.
Kotak Nifty AAA Bond Plus SDL Apr 2026 70:30 ETF shall replicate the index completely. In case the Scheme is not able to replicate the index the Fund Manager may invest in other issuances within the limits specified and subject to conditions laid down by SEBI circular dated November 29, 2019 as amended from time to time.
The Scheme may also participate in new issuances by the eligible issuers which are currently not part of the index, but will eventually get included in the index during the next rebalancing period in line with SEBI circular no. SEBI/HO/IMD/ DF3/CIR/P/2019/147 dated November 29, 2019.
Kotak Nifty AAA Bond Plus SDL Apr 2026 70:30 ETF may participate in such issuances only if they meet all eligibility criteria as defined by the index and suitable from asset allocation perspective and other parameters of the scheme.
The scheme may also invest a portion of its portfolio in Debt & Money Market Securities maturing on or before the maturity date of the Scheme, Repo in government securities and TREPS to manage liquidity requirement.
Kotak Nifty AAA Bond Plus SDL Apr 2026 70:30 ETF’s performance will be benchmarked against Nifty AAA Bond Plus SDL Apr 2026 70:30 Index.
The fund will be managed by Mr Abhishek Bisen.
The NFO opens for subscription on October 08, 2021 and closes on October 13, 2021. The scheme will reopen for continuous sale and repurchase on or before October 21, 2021.
The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.
The units of the Scheme will be listed on NSE. The AMC reserves the right to list the units on other exchanges.