Kotak Mutual Fund to launch Kotak Nifty 100 Equal Weight Index Fund

Kotak Mutual Fund is set to launch the Kotak Nifty 100 Equal Weight Index Fund, which aims to replicate and track the Nifty 100 Equal Weight Index.

This fund will follow a passive investment strategy, allocating between 80-100% of its assets in equity and equity-related securities, in the same proportion as the Nifty 100 Equal Weight Index. The fund also plans to invest 0-5% in debt or money market instruments.

Investment Strategy and Fund Details

The Kotak Nifty 100 Equal Weight Index Fund will track the Nifty 100 Equal Weight Index by investing in the same stocks and proportions as the index. The strategy is designed to minimize tracking error through regular portfolio rebalancing, which accounts for changes in the weights of stocks in the index as well as the net inflows or outflows from the scheme. The fund will be benchmarked against the Nifty 100 Equal Weight Index (Total Return Index).

The minimum application amount for both lump-sum and SIP investments in the fund is Rs 100, with additional investments possible in any amount thereafter.

NFO Details and Fund Management

The New Fund Offer (NFO) for the Kotak Nifty 100 Equal Weight Index Fund will be open for subscription from December 2, 2024, and close on December 16, 2024. After the NFO period, the fund will reopen for continuous sale and repurchase starting December 30, 2024. The fund will be managed by a team consisting of Devender Singhal, Satish Dondapati, and Abhishek Bisen, who will oversee its portfolio and strategy.

Conclusion 

The Kotak Nifty 100 Equal Weight Index Fund offers investors a passive way to track the Nifty 100 Equal Weight Index, with an investment strategy aimed at minimizing tracking errors. The NFO opens on December 2, providing a window for interested investors to subscribe.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.