Kotak Mahindra AMC - Kotak BK ETF

About Kotak Nifty Bank ETF: KOTAKBKETF

• Kotak Nifty Bank ETF is an open-ended exchange-traded fund offered by the Kotak Mahindra Mutual Fund House.
• The scheme was launched on December 11, 2014.
• The ETF consists of stocks of the top private and public sector banks listed on the Indian stock market.
• The scheme's assets under management stood at ₹ 5,858 crore as of July 31, 2024
• Devender Singhal and Satush Dondapati are the fund managers for the Kotak Nifty Bank ETF.
• Kotak Nifty Bank ETF units can be bought and sold like any other equity share on the Stock Exchange through a Demat account
• Investors eligible to invest in equity shares can invest in Kotak Banking ETF.

Investment Objective & Benchmark

• The Kotal Nifty Bank ETF aims to offer a return corresponding to the performance of the total returns from securities as represented by the underlying index. The returns are subject to marginal tracking errors.
• The ETF is benchmarked against the Nifty Bank Index.
• With the growing size of the Indian economy, the demand for borrowing is expected to increase, positioning the banking sector to perform well.
• Stringent regulations are in place in the banking sector, ensuring smooth functionality and limiting the investor's risk to fraudulent practices.
• The fund provides a cost-effective alternative to investing in the top banking stocks. The ETF diversifies the fund into private and public sector banks, creating a balance.

Asset Allocation & Portfolio Composition

• Kotak Nifty Bank ETF is invested heavily in equity, allocating 99.57% of the assets to them.
• Kotak Nifty Bank ETF has allocated 99.5% of the assets in the financial sector and the remaining 0.49% in others.
• The ETF invests in companies across market capitalisation — 67.22% of the funds to giant cap, 13.93% to large caps and 14.87% to mid-cap. The remaining 3.98% of assets are allocated to small-cap companies.
• The top 10 holding companies in the scheme make up 96.71% of the asset allocation.

Top 10 holding companies UTI Nifty Bank ETF along with their portfolio weightage:

• HDFC Bank Ltd.- 28.36%
• ICICI Bank Ltd- 23.36%
• Kotak Mahindra Bank Ltd- 10.12%
• State Of Bank- 10.08%
• Axis Bank Ltd-9.96%
• IndusInd Bank Ltd- 5.5%
• Bank of Baroda- 2.83%
• Federal Bank Ltd 2.39%
• AU Small Finance Bank Ltd- 2.13%
• Punjab National Bank - 2.08%

Kotak Nifty Bank ETF has earned a return of 17.4% in a year as of July 5, 2024, compared to Bank Nifty's yield of 17.66% during the period.

Since its inception in October 2014, the ETF has posted a return of 11.63%.