Kotak Mahindra AMC - Kotak Cons

About Kotak NIFTY India Consumption ETF

• Kotak NIFTY India Consumption ETF is an exchange-traded fund offered by the Kotak Mutual Fund House.
• The ETF includes stocks from automobiles, diversified FMCG, retail and other consumer-oriented sectors.
• The scheme was launched on July 28, 2022.
• As of July 31, 2024, the scheme’s total assets under management (AUM) stood at ₹ 1 crore.
• Devender Singhal, Abhishek Bisen and Satish Dondapati are the fund managers of the ETF.
• One can invest in the scheme directly by buying the ETF units through a demat account with a registered broker.
• Kotak NIFTY India Consumption ETF is traded on the NSE, allowing investors to trade at market prices during each session.

Investment objective and benchmark

• Kotak NIFTY India Consumption ETF aims to replicate the performance of the total securities part of the underlying index, subject to minimal tracking errors.
• The scheme is benchmarked against the Nifty India Consumption Index.
• Companies with larger market capitalisation have a greater impact on the ETF's performance.
• The Kotak NIFTY India Consumption ETF includes companies that are household names in India and leaders in their respective sectors.
• The ETF offers an opportunity to diversify your portfolio by including stocks from different sectors of the economy. This limits investors’ exposure to sector-specific risk.
• Consumption in India is poised for significant growth, driven by the country’s expanding economy and rising income levels across various segments of society.

Asset allocation and portfolio composition

• The ETF predominantly invests in equity, allocating over 99% of the available assets. The scheme has invested in companies across market capitalisations–38.81% in giant cap, 22.02% in large cap, 28.73% in mid-cap, 10.37% in small cap and 0.07% in small companies.

Sector-wise allocation of funds:

• Automobiles: 22.25%
• Diversified FMCG: 17.2%
• Retailing: 12.03%
• Consumer Durables: 10.46%
• Telecom Services: 10.13%
• Food Products: 5.1%
• Healthcare Services: 4.31%
• Personal Products: 4.1%
• Beverages: 3.79%
• Power: 3.44%
• Top 10 company holdings make up 68.08% of the ETF's asset allocation

Here are the top 10 companies included in the ETF:

• Bharti Airtel Ltd - 10.13%
• ITC Ltd. - 9.97%
• Mahindra & Mahindra Ltd. - 9.11%
• Hindustan Unilever Ltd. - 7.23%
• Maruti Suzuki India Limited - 5.18%
• Titan Company Ltd. - 4.66%
• Asian Paints Ltd. - 4.3%
• Zomato Ltd. - 4.06%
• Trent Ltd - 3.95%
• Bajaj Auto Ltd. - 3.49%

The Kotak NIFTY India Consumption ETF has yielded a return of 40.32% in the past year as of July 31, 2023, compared to the benchmark index’s 40.63% yield.

Since its inception, the Kotak NIFTY India Consumption has given a return of 26.18%.