Kotak Mahindra AMC - Kotak IT ETF

About Kotak Nifty IT ETF

• Kotak Nifty IT ETF is an open-ended exchange-traded fund scheme offered by the Kotak Mutual Fund house.
• The ETF was launched on March 1, 2021.
• It comprises the top stocks from the information technology sector in India.
• Devender Singhal and Satish Dondapati have been the fund managers for ETF since its inception.
• Investment in Kotak Nifty IT ETF is possible through demat account with a registered broker.
• Buy orders for the ETF can be placed during the usual trading hours of the exchange.

Investment Objective & Benchmark

• Kotak Nifty IT ETF targets to offer returns that mirror the performance of the underlying index, subject to minor tracking errors.
• The ETF is benchmarked against the Nifty IT Index which captures the performance of the IT segment.
• Kotak Nifty IT ETF offers exposure to the top large IT stocks in India, allowing investors to earn stable returns.
• The ETF invests in large-cap companies, protecting investors from risks that small firms usually face.
• The IT sector has witnessed massive growth over the past few decades and is poised to gain further with the advancement of technology.
• The Nifty IT index has been one of the best-performing indices, offering returns of over 23.7% in the past five years against Nifty 50’s 19.4% during the period.

Asset Allocation & Portfolio Composition

• Kotak Nifty IT ETF allocates 99.43% of its funds to equity whereas the remaining 0.57% is invested in debts and cash.
• The ETF has invested 99.43% of the fund in the technology sector.
• Kotak Nifty IT ETF invests funds across market capitalisations - around 68.10% in giant-cap, 15.81% in large-cap companies and 11.85 % in mid-cap firms. The remaining 4.24% is invested in small-cap and 0.01% is allocated to tiny-cap firms.
• The top 10 equity holdings in Kotak Nifty IT ETF constituted 79.67% of the assets, as of June 2024.

Top companies of the ETF along with their net asset weightage:

• Honeywell Automation India Limited- 4.38%
• Bharti Airtel Limited- 3.9%
• ICICI Bank Limited- 3.83%
• Maruti Suzuki India Limited- 3.77%
• Britannia Industries Limited- 3.73%
• ITC Limited- 3.69%
• Asian Paints Limited- 3.68%
• Hindustan Unilever Limited- 3.66%
• Dabur India Limited- 3.4%
• Pidilite Industries Limited

Kotak Nifty IT ETF has yielded a return of 20.26% in a year against the underlying index's gain of 29.54%.

The ETF has delivered a CAGR of 14.28% since its inception.