New Fund Offer :Kotak Mahindra Asset Management Company Limited (KMAMC/Kotak Mutual Fund) has announced the launch of Kotak Nifty 100 Low Volatility 30 Index Fund. This is an open-ended scheme, which tracks the Nifty 100 Low Volatility 30 Index. This scheme (New Fund Offer) is opening for public subscription on May 22, 2024 and will close on May 31, 2024. Kotak Nifty 100 Low Volatility 30 Index Fund is the only index fund offered by Kotak Mahindra Mutual Fund tracking the Nifty 100 Low Volatility 30 Index
Nifty 100 Low Volatility 30 Index is a strategic investment index consisting of large market capitalization stocks selected from the Nifty 100 index. Focusing on low volatility stocks within the Nifty 100 index ensures a strong investment portfolio. The selection of securities and its weighting is based on the volatility of the last one year. It provides a cost-effective and transparent option for investing in the Indian stock market in the large-cap sector.
Fund Features
· Reducing volatility: The aim is to limit the impact of market volatility by investing in companies with large market capitalization and low volatility in different sectors.
· Disciplined investment: Follows a systematic investment approach ensuring consistency in investment decisions.
· Rule-based strategy: The scheme follows a rule-based, investment strategy, increasing transparency and allocating investment risk to a single theme.
· Cost-effective: This scheme offers a lower cost investment option compared to actively managed funds.
Higher returns in the long run
Nilesh Shah, Managing Director, Kotak Mahindra AMC said that at Kotak Mutual Fund, we constantly strive to provide different investment options to investors. The launch of Kotak Nifty 100 Low Volatility 30 Index Fund is in line with our vision to offer products that meet the investment objectives of investors with a risk appetite. Currently, large caps are at reasonable valuations compared to midcaps and small caps. This index fund offers investors the opportunity to invest in a rules-based index that invests in low-volatility large-cap companies across different sectors. The investment objective of the scheme is to provide returns that correspond to the total returns of the securities represented by the underlying index, before expenses, subject to tracking errors.
Devendra Singhal, Executive Vice President and Fund Manager, Kotak Mahindra AMC, said investors looking to invest in large cap companies and seeking low volatility can now opt for Nifty 100 Low Volatility 30 Index as an investment option. A group of 30 large-cap companies from the Nifty 100 index that constitute this fund can help investors diversify their portfolio for higher returns over the long term.
For whom is the better option?
The net assets of the scheme will be invested in shares of Nifty 100 Low Volatility 30 Index and/or its exchange-traded derivatives maintaining equal weighting to the index. Equity and equity-related securities including convertible bonds, debentures and warrants for equity shares will be considered for investment. This scheme is better suited for investors looking for better returns over the long term, matching the performance of the Nifty 100 Low Volatility 30 Index subject to tracking error.
(Note: The past performance of any index may or may not hold in the future. There are risks in the market, hence investors may consult their financial advisor before taking any investment decision.)