Kotak Nifty 50 ETF

About Kotak Nifty 50 ETF

• The Kotak Nifty 50 ETF is an open-ended mutual fund offered by Kotak Mahindra Mutual Fund.
• The scheme invests in top companies listed on the National Stock Exchange (NSE).
• Kotak Nifty 50 ETF was launched on February 2, 2010.
• The ETF has assets under management (AUM) of ₹2,558 crore as of July 31, 2024.
• Devender Singhal and Satish Donapati are the fund managers.
• The ETF units are listed on both NSE and BSE. Retail investors can purchase units through a broker or directly from their demat account.
• The ETF units can be bought and sold, just like equity stocks, at the prevailing prices during usual market hours.

Investment Objective & Benchmark

• The fund objective is to generate returns by investing in the securities of the underlying index, though some tracking errors may occur.
• It is benchmarked against the Nifty 50 Index which is a well-diversified index comprising top companies across key sectors of the Indian economy.
• The index is calculated using a free-float market capitalisation method, considering only shares available for trading.
• The fund has diversified exposure across key sectors such as financial services, IT, energy, consumer goods, and more, reflecting the sector composition of the Nifty 50 Index.
• The portfolio features a mix of large-cap and mid-cap companies that are leaders in their fields and are expected to benefit from India’s growing trends.
• The ETF is rebalanced periodically to align with any changes in the Nifty 50 Index, such as additions or deletions of stocks.
• The risk profile level of Kotak Nifty 50 ETF is very high, making it suitable for long-term wealth creation goals.

Asset Allocation & Portfolio Composition

• The ETF holds 99.78% of its fund in equity and 0.22% in cash.
• The fund primarily invests in large and giant cap companies, allocating over 90% of the funds to them.

Sector-wise fund allocation:

• Banks: 28.03%
• IT-software: 13.73%
• Petroleum Products: 9.83%
• Automobile: 8.21%
• Diversified FMCG: 6.33%
• Construction: 4.03%
• Finance: 4.95%
• Pharma & Biotech: 3.72%
• Telecom-Services: 3.61%
• Finance: 3.27%
• Power: 3.23%

The top 10 company holdings constitute around 68.24% of the ETF’s asset allocation. The top 10 holdings of the ETF include:

• HDFC Bank Ltd: 11.01%
• Reliance Industries Ltd: 9.21%
• ICICI Bank Ltd: 7.73%
• Infosys Ltd: 6.11%
• ITC Ltd: 4.14%
• Larsen and Toubro Ltd: 4.03%
• Tata Consultancy Services Ltd: 4.02%
• Bharti Airtel Ltd: 3.61%
• State Bank of India: 3.03%
• Axis Bank Ltd: 3%

Since its Inception, the ETF has given an annualised return of 12.89% to its investors as of August 14, 2024.

In the last year, the ETF has given a return of 25.63% compared to its benchmarked index which has given a return of 25.70% as of August 14, 2024.