Kotak Mahindra AMC - Kotak MNC ETF

About Kotak Nifty MNC ETF

• Kotak Nifty MNC ETF is an open-ended scheme offered by the Kotak Mutual Fund House.
• The ETF include a diverse range of sectors, focusing on multinational firms that have a substantial impact on the global economy.
• Kotak Nifty MNC ETF was launched on August 5, 2022.
• Kotak Nifty MNC ETF has assets under management (AUM) stood at ₹22 crore as of June 30, 2024.
• The risk level of Kotak Nifty MNC ETF is very high.
• Devender Singhal, Satish Dondapati and Abhishek Bisen are the funds managers of Kotak Nifty MNC ETF.
• The fund is traded on both stock exchanges, which enables investors to trade at market price during each session.
• One can invest in the scheme by buying units through a demat account with a registered broker.

Investment Objective & Benchmark

• The ETF aims to offer returns that replicate the performance of equity stocks in the underlying index, subject to minor tracking errors.
• It is benchmarked against Nifty MNC TRI. This index tracks the performance of large-cap multinational companies listed on the NSE of India.
• The underlying index includes companies that are multinational corporations and companies with significant business operations outside of India. These are typically large-cap stocks with a global presence.
• The ETF seeks to mirror the performance of the Nifty MNC Index by holding the same constituent stocks in proportion to their weight in the index.
• By investing in multinational companies, the ETF provides diversification across various sectors and geographic regions.

Asset Allocation & Portfolio Composition

• The ETF has invested 100% of its assets in equity stocks.
• The scheme has invested its available funds in companies across market capitalisations — 26% in giant cap, 12% in large cap, 52.8% in mid-cap and 9% in small cap.

Sector-wise fund allocation of ETF:

• Food Products: 15.3 %
• Electrical Equipment: 11.17 %
• Diversified FMCG: 10.1 %
• Automobiles: 9.87 %
• Industrial Products: 9.33 %
• Diversified Metals: 6.3 %
• Personal Products: 5.27 %
• Beverages: 5.09 %
• Agricultural, Commercial and Construction: 4.77 %
• Auto Components: 4.76 %

Top 10 company holdings make up 71.82% of the ETF’s asset allocation.
Here are the top 10 holdings in stocks of this ETF:

• Hindustan Unilever Limited:10.1%
• Maruti Suzuki India Limited: 9.87%
• Nestle India Limited: 8.95%
• Siemens Limited: 6.75%
• Britannia Industries Limited: 6.35%
• Vedanta Limited: 6.3%
• Cummins India Limited: 5.3%
• ABB India Limited: 4.42%
• Ambuja Cements Ltd: 3.90%
• Colgate Palmolive(India)Ltd: 3.73%

The ETF has posted a return of 39.82% in the last year as of July 31, 2024, compared to the benchmark index's 40.32% yield during the period.

Since its inception, the scheme has delivered a return of 28.13%.