Kotak Mahindra Mutual Fund launches Kotak Nifty Midcap 50 Index Fund; details inside

Kotak Mahindra Mutual Fund has launched an open-ended index fund, Kotak Nifty Midcap 50 Index Fund, on July 25, 2024. The fund aims to replicate the Nifty Midcap 50 Index, providing returns matching the index, excluding expenses. It is categorised as an Other Scheme - Index Fund with a minimum investment of ₹100. The New Fund Offer (NFO) closes on August 8, 2024.

Management Commentary on Index Fund Launch

Nilesh Shah, Managing Director of Kotak Mahindra AMC, said, “At Kotak Mutual Fund, we continually strive to provide our investors with diverse investment solutions. The launch of the Kotak Nifty Midcap 50 Index Fund aligns with our commitment to offering active and passive products that cater to different risk appetites and investment horizons. While Midcap 50 Index presents a mixed landscape with varying opportunities across sectors, this index fund allows investors to gain focused exposure to a select group of top midcap companies within Nifty Midcap 150 Index. This index fund facilitates investors to capitalise on the potential of the midcap segment. However, it is important to be cognizant of proper asset allocation of your investments before investing.”

Devender Singhal, Executive Vice President & Fund Manager, Kotak Mahindra AMC was of the view that, “The Kotak Nifty Midcap 50 Index Fund is an addition to our passive product line-up, catering to investors’ interest in India’s Midcap space. Midcaps play a crucial role in key sectors of our economy, from Capital Goods and finance to healthcare and information technology. While individual Midcap stocks may exhibit varying performance, this index-based approach allows investors to potentially benefit from the overall growth and innovation potential of the mid-sized companies.”

Kotak Nifty Midcap 50 Index Fund

The investment objective of the Kotak Nifty Midcap 50 Index Fund is to provide returns that, before expenses, corresponding to the total returns of the securities as represented by the underlying index, subject to tracking errors.

Risk-o-meter

Funds Allocation

Who should invest in this fund?

This NFO of Kotak Nifty Midcap 50 Index Fund is suitable for investors who are seeking long-term capital appreciation and return that corresponds to the performance of NIFTY Midcap 50 Index, subject to tracking error.

Benchmark

Peer Fund Schemes

Who Manages the Scheme?

Abhishek Bisen has been associated with the company since October 2006 and his key responsibilities include fund management of debt schemes. Prior to joining Kotak AMC, Abhishek was working with Securities Trading Corporation of India Ltd where he was looking at Sales & Trading of Fixed Income Products apart from doing Portfolio Advisory. His earlier assignments also include 2 years of merchant banking experience with a leading merchant banking firm.

Devender Singhal is managing the equity funds for Kotak AMC since Aug 2015. He is managing assets across multicap and hybrid strategies. He has more than 22 years of experience in fund management and equity research of which last 15 years have been with Kotak. Before joining Kotak AMC, He was part of various PMS like Kotak, Religare, Karvy, and P N Vijay Financial Services.

Satish Dondapati has over 16 years of experience in ETFs. He joined Kotak AMC in March 2008 in Product Department. Prior to joining Kotak AMC, he was in the MF Product Team of Centurion Bank of Punjab.

Conclusion

The Kotak Nifty Midcap 50 Index Fund offers investors focused exposure to midcap companies, balancing potential growth with proper asset allocation.