Kotak Nifty Alpha 50 ETF is an open-ended scheme which tracks NIFTY Alpha 50 Index.
| Good to know What is Alpha? Alpha, also referred to as ‘excess return’, is a term that measures the return earned by a stock above or below demanded by the market for its risk class. Exchange-traded fund (ETF) An ETF is a fund that tracks the performance of sectors, commodities or stock market indices. Unlike other equity schemes, it can be traded on the exchanges just like a stock. ETFs can contain many types of investments, including stocks, commodities and bonds |
Investment objective
The scheme will track or replicate the performance of 50 stocks listed with NSE with high Alpha’s in the last one year. As per the criteria, these companies are selected from top 300 companies by average free-float market capitalization and average daily turnover for the previous six months.
The ETF has low cost as compared to actively managed funds. This open-ended fund will provide the opportunity to invest in a well-diversified portfolio of stocks with high Alphas. It can also be used as a tool to balance investors’ active portfolios.
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Asset allocation
| Instrument | Allocation (% of total assets) | Risk profile | |
| Minimum | Maximum | ||
| Equity and equity related securities covered by the Nifty Alpha 50 Index | 95 | 100 | Medium - High |
| Debt and money market instruments | 0 | 5 | Low to medium |
Scheme details
| Name | Kotak Nifty Alpha 50 ETF |
| Type | An open-ended scheme replicating/tracking NIFTY Alpha 50 Index |
| Category | Equity-ETF |
| Benchmark | NIFTY Alpha 50 Index (Total Return Index) |
| Entry/exit load | Entry: Nil Exit Load: Nil |
| Fund Manager | Mr. Devender Singhal, Mr. Satish Dondapati and Mr. Abhishek Bisen |
| Minimum application amount | ₹5,000 and in multiples of ₹1. |
| Expense ratio | Up to 1.00% |
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| This product is suitable for investors who are seeking*: | Riskometer |
| -Long-term capital growth -Investment in stocks comprising the underlying index and endeavours to track the benchmark index. |
Note: The above information has been sourced from the Scheme Information Document provided by Kotak Mahindra Asset Management Company. To read the entire document, click here.
Disclaimer: The above article is purely academic in nature and aims to provide knowledge about basic trading concepts & should not be construed as an opinion or advice to invest or trade. RKSV Securities India Private Limited (brand name Upstox) is the distributor of the mutual fund. Mutual fund investments are subject to market risks; please read all the related documents and/or consult your investment advisor before investing. Past performance of an investment asset does not guarantee future returns.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.