MUMBAI: Kotak Mahindra Asset Management Company Limited (Kotak Mutual Fund) on Monday announced the launch of Kotak Nifty 50 Index Fund – a large cap index fund based on the popular NIFTY 50 Index. This fund will invest in 50 large cap companies represented in the popular Nifty 50 Index in the same weight and give investors a chance to become part owners of India’s most formidable companies, the AMC said in a press release.
Harsha Upadhyaya, president & CIO – Equity, Kotak Mahindra Asset Management Company, said, “Kotak Nifty 50 Index fund is a one-stop solution for long-term wealth creation and is a good choice for investors looking to participate in India’s growth story over the next few decades. As a passive, low cost fund, it allows investors to participate in a diversified portfolio of large cap blue chip companies by tracking Nifty 50 Index.”
The Nifty 50 has delivered a return of 49.89% over the past year and 14.72% CAGR over the past 5 years (including dividends) as of 30 April, according to a factsheet published by the National Stock Exchange (NSE). Index Funds passively track an index such as the Nifty 50 and tend to have lower expense ratios than their actively managed counterparts. According to data from the Association of Mutual Funds in India (Amfi) for April 2021, there are 46 index funds in India with Rs20,426 crore worth of assets under management.
“The best way to invest in this fund will be to start an SIP for a long period of time and increase it every year in line with increase in your savings. This fund is ideal for those who believe in investment over speculation i.e. long term patience versus short term action,” added Upadhyaya. Kotak Mutual Fund manages over ₹11,000 crore AUM across 10 passive strategies. In FY 20-21, the AMC launched the Kotak Next 50 Index fund, Kotak IT Exchange Traded Fund (ETF) and Kotak Nasdaq-100 Fund of Funds (FOF). The New Fund Offer (NFO) opens for subscription from 31st May, 2021 to 14th June, 2021. Being an open ended fund, it will be available for purchase and sale thereafter as well.
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