Kotak Nifty Smallcap 250 Index Fund :Kotak Mahindra Asset Management Company (Kotak Mutual Fund) has launched its New Fund Offer (NFO), Kotak Nifty Smallcap 250 Index Fund. This NFO will be open for public subscription from 6 January 2025 to 20 January 2025. This is an open ended equity scheme, for which the benchmark will be Nifty Smallcap 250 index.
Fund House: Kotak Mahindra Mutual Fund
NFO Open Date: January 6, 2025
NFO closing date: January 20, 2025
Category : Equity Small Cap
Minimum investment: Rs 100
Lock in period: none
Exit Load: Zero
Benchmark: NIFTY Smallcap 250 TRI
Fund Manager: Devender Singhal
SIP Return: Top scheme with top rating, who did SIP by saving Rs 150 daily, got Rs 2 crore, 31 times return for lump sum people
What is the purpose of this scheme
Kotak Nifty Smallcap 250 Index Fund is an open-ended scheme tracking the Nifty Smallcap 250 index. The investment objective of this scheme is to provide returns commensurate with the total return of the securities represented by the underlying index, before expenses, subject to tracking errors. However, there is no guarantee that the investment objective of the scheme will be achieved.
Talking about Nifty Smallcap 250 index, it represents the 250 companies after the top 250 companies of Nifty 500 (companies ranked 251-500). The objective of this index is to measure the performance of companies with small market capitalization. To be included in the Nifty Smallcap 250 index, companies must be a part of the Nifty 500, but not the Nifty 100 and Nifty Midcap 150.
Mutual Fund Stars: 3 new schemes of Motilal Oswal AMC among the rising stars of mutual funds, topped among the NFOs giving best returns.
Top Sector Weightage
Financial Sector: 20.6%
Capital Goods: 13.2%
Healthcare: 12.8%
Chemicals: 7.0%
Consumer Durables: 6.6%
IT: 5%
Construction: 4.7%
FMCG: 4.3%
Auto & Auto Component : 4.2%
Consumer Services: 3.6%
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Top Stocks Weightage
MCX: 1.64%
Central Depository Services: 1.52%
Crompton Greaves : 1.37%
Blue Star : 1.25%
CAMS: 1.23%
Glenmark Pharma: 1.20%
Laura’s Labs: 1.16%
NALCO : 1.13%
360 ONE WAM : 1.13%
Radico Khaitan : 1.0%
Investment opportunity in small cap stocks
Nilesh Shah, Managing Director, Kotak Mahindra AMC, says that Kotak Mutual Fund’s endeavor has been to offer a wide range of investment options to meet the needs of different types of investors. This scheme of mutual fund has also been designed in this sequence. Kotak Nifty Smallcap 250 Index Fund has both active and passive options. It suits the risk appetite of different types of investors and their investment objectives. Nifty Smallcap 250 index will give investors an opportunity to invest in stocks of smallcap companies from different sectors. However, considering the increased valuations, investors should consider investing only with a long term approach.
Top Return: This scheme of mutual fund topped in the year 2024, has been giving 24% annual SIP return for 10 years
Benefit of growth potential of small size companies
Devendra Singhal, Executive Vice President and Fund Manager, Kotak Mahindra AMC, says that Kotak Nifty Smallcap 250 Index Fund is an important addition to our product lineup in the passive category. Which caters to the interest of investors in India’s smallcap space. Small cap refers to key sectors of the economy, ranging from capital goods and finance to healthcare and consumption. Although different small-cap stocks may perform differently, this index-based approach allows investors to potentially benefit from the overall growth and potential of smaller-sized companies.
Note: The past performance of a fund may or may not be sustained in the future. Investors are advised to consult their financial advisor before taking any investment decision. Mutual fund investments are subject to market risks, please read all scheme related documents carefully.
