Kotak Mahindra AMC - Kotak Alpha ETF

About Kotak Nifty Alpha 50 ETF

• Kotak Nifty Alpha 50 ETF is an open-ended value-oriented equity scheme that belongs to Kotak Mahindra Asset Management Company.
• The scheme was launched on December 22, 2021.
• The scheme’s assets under management (AUM) stood at ₹264 crore as of July 31, 2024
• Devender Singhal, Satish Dondapati and Abhishek Bisen have been managing the fund.
• The fund is traded on both stock exchanges, which enables investors to trade at market price during each session.
• The ETF units can be bought through a broker or directly from the demat account.

Investment Objective & Benchmark

• The investment objective of the Kotak Nifty Alpha 50 index is to replicate the composition of the underlying index and generate corresponding returns.
• It is benchmarked against the Nifty Alpha 50 Index TRI.
• The NIFTY Alpha 50 Index tracks the performance of 50 stocks selected from the top 300 companies based on average free-float market capitalisation and average daily turnover over the last six months.
• The index is reviewed quarterly based on data from the preceding six months.
• With this ETF, investors get exposure to a diversified set of stocks, which can help spread out risk compared to investing in individual stocks.

Asset Allocation & Portfolio Composition

• The ETF predominantly invests in large and giant cap companies, with an allocation of over 80%.
• The asset allocation of funds comprises 99.79% in equity and 0.21% in cash and cash equivalent.

Sector-wise fund allocation:

• Finance: 13.18 %
• Power: 12.26 %
• Electrical Equipment: 10.18 %
• Construction: 7.17 %
• Capital Markets: 6.37 %

The top 10 holdings of stocks constitute around 32.18% of the ETF’s asset allocation. Top 10 company holdings in this ETF:

• Kalyan Jewellers India Ltd: 3.85%
• Suzlon Energy Ltd: 3.77%
• Indian Railway Finance Corporation Ltd: 3.72%
• BSE Ltd: 3.59%
• Housing & Urban Development Corporation Ltd: 3.51%
• Rural Electrification Corporation Ltd: 3.27%
• Rail Vikas Nigam Limited: 3.1%
• TITAGARH RAIL SYSTEMS LTD: 2.99%
• SJVN Limited: 2.81%
• Bharat Heavy Electricals Ltd: 2.75%
• Power Finance Corporation Ltd: 2.68%
• Torrent Power Ltd: 2.58%
• Trent Ltd: 2.53%

Since its Inception, the ETF has given an annualised return of 21.98% as of July 31, 2024.

In a single year, Kotak Nifty Alpha 50 ETF has delivered a return of 71.68%, compared to benchmark returns of 73.91% as of July 31, 2024.