Kotak Mahindra AMC - Kotak Low Vol ETF

About Kotak Nifty 100 Low Volatility 30 ETF

• Kotak Nifty 100 Low Volatility 30 ETF is an open-ended fund-of-funds scheme which focuses on low volatility factors.
• The ETF invests in stocks that have shown lower volatility in the past. This strategy aims to provide stability and reduce risk for investors.
• This ETF offers a targeted approach for investors looking to mitigate risk through exposure to stocks with historically lower volatility.
• Devendra Singhal, Abhishek Bisen and Satish Donapati are the fund managers of Kotak Nifty 100 Low Volatility 30 ETF.
• It rebalances every 6 months to represent the current largest companies and sectors. Reconstitution of the ETF happens semi-annually in June and December.
• The ETF was launched on March 23, 2022.
• Kotak Nifty 100 Low Volatility 30 ETF has assets under management (AUM) that stood at ₹121 crore.
• The fund is traded on both stock exchanges, which enables investors to trade at market price during each session.
• One can invest by buying ETF units through a demat account with a registered broker

Investment Objective & Benchmark

• The investment objective is to provide returns that correspond to the total return of the underlying index.
• It is benchmarked against the Nifty 100 Low Volatility 30 Total Return Index.
• The ETF comprises a selection of stocks from the Nifty 100 listed which have lower volatility characteristics and aim to expose companies with historically lower price fluctuations.
• It combines the benefits of diversification, liquidity and potentially lower costs associated with ETF investments.
• The Kotak Nifty 100 Low Volatility 30 ETF invests in low-volatility stocks which are traditionally known to be better equipped to handle market downtrends.
• It offers a cost-effective way to spread risk across sectors without having to invest in individual stocks.
• The risk factor level of Kotak Nifty 100 Low Volatility 30 ETF is very high. It is suited for investors with a long-term investment goal.

Asset Allocation & Portfolio Composition

• The fund's asset allocation comprises around 99.78% equities and 0.22% in cash & cash equivalents.
• The scheme invests in companies across market capitalisations – 63.65% in giant, 33.65% in large-cap and 2.70% in mid-cap firms.
• Top 10 holdings make up 40.6% of the ETF's asset allocation.

The top 10 Holdings in stocks of Kotak Nifty 100 Low Volatility 30 ETF include:

• Hindustan Unilever: 4.33%
• ICICI Bank: 4.1%
• Reliance Industries: 3.98%
• Asian Paints: 3.88%
• Sun Pharmaceutics Industries: 3.78%
• Ultratech Cement: 3.78%
• ITC: 3.77%
• Britannia Industries: 3.75%
• Bharti Airtel: 3.74%
• Nestle India: 3.63%

Sector-wise allocation in this fund;

• Pharmaceutical & Biotechnology: 12.84%
• Banks: 10.78%
• Consumer Durables: 10%
• IT-Software: 9.71%
• Diversified FMGC: 8.1%
• Food Products: 7.38%
• Personal Products: 5.9%
• Automobiles: 5.5%
• Petroleum Products: 3.98%
• Cement and Cement Products: 3.78%

The ETF has delivered a return of of 36% in the last year as of July 26, 2024, compared to the benchmark index's 36.23% yield.

Since its inception, the fund has generated a CAGR of 22.82%.