Mutual Fund News : Kotak Mahindra Mutual Fund Launches Kotak Nifty MNC ETF

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Kotak Mahindra Mutual Fund has Introduced a new scheme – Kotak Nifty MNC ETF

It is an open-ended scheme replicating/tracking NIFTY MNC Index.

Accordingly, the investment objective of the scheme is to replicate the composition of the NIFTY MNC Index and to generate returns that are commensurate with the performance of the NIFTY MNC 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 MNC ETF will hold an allocation of 95% to 100% of its assets in Equity and Equity related securities covered by the NIFTY MNC Index and 0% to 5% of its assets in Debt & Money Market Instruments.

As per the Scheme Information Document, the scheme will follow passive investment strategy with investments in stocks in the same proportion as in NIFTY MNC 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 MNC ETF’s performance will be benchmarked against Nifty MNC Index.

The scheme will be managed by Mr. Devender Singhal, Mr. Satish Dondapati and Mr. Abhishek Bisen.

The NFO opens for subscription on August 01, 2022 and closes on August 04, 2022. The scheme will reopen for continuous sale and repurchase Within five Business Days from the date of allotment.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000/- for Index fund and in multiples of Re.1 thereafter.

Currently, there are no plans/ options under the ETF Scheme.