Kotak Mahindra AMC - Kotak Mid 50 ETF

About Kotak Nifty Midcap 50 ETF

• Kotak Nifty Midcap 50 ETF is an open-ended value-oriented equity scheme that belongs to Kotak Mutual Fund House.
• The Kotak Nifty Midcap 50 ETF is designed to measure the midcap 50 stocks. It includes companies ranked between large-cap and small-cap in terms of market capitalisation.
• The ETF was launched on January 28, 2022.
• Kotak Nifty Midcap 50 ETF has assets under management (AUM) of ₹32 crore as of July 31, 2024.
• Devender Singhal, Satish Dondapati and Abhishek Bisen are the fund managers.
• 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 correspond to the performance of stocks constituent of the underlying index.
• It is benchmarked against Nifty Midcap 50 TRI, which consists of 50 mid-cap stocks in the Indian equity market.
• The ETF offers exposure to a diversified set of mid-cap stocks, which can help spread out risk compared to investing in individual stocks.
• It invests in mid-cap companies with potential for growth and higher returns compared to large-cap stocks.
• The ETF invests in the same proportion of stocks as in the Nifty Midcap 50.
• The risk level profile of this ETF is very high. It is suitable for investors looking for a long-term wealth creation goal.

Asset Allocation & Portfolio Composition

• The ETF holds 99.92% of its fund in equity and 0.08% in cash.
• It predominately invests in mid-cap and small-cap companies, allocating over 80% of the assets to them.

Sector-wise fund allocation:

• Banks - 11.14%
• Auto Components - 8.72%
• IT - Software - 8.61%
• Electrical Equipment - 6.96%
• Pharmaceuticals and Biotechnology - 6.86%
• Industrial Products - 6.75%
• Telecom - Services - 5.67%
• Leisure Services - 4.77%
• Healthcare Services - 4.12%
• Fertilizers and Agrochemicals - 3.9%

The top 10 holdings constitute 31.4% of the ETF’s asset allocation. Here’s a list of top 10 holdings in this ETF:

• Suzlon Entergy Ltd - 4.5%
• Max Healthcare Institute Ltd - 4.12%
• The Indian Hotels Company Ltd - 3.38%
• Cummins India Ltd - 3.17%
• Persistent Systems Limited - 3.06%
• Yes Bank Ltd - 2.92%
• Federal Bank Ltd - 2.9%
• Lupin Ltd - 2.8%
• Dixon Technologies India Ltd. - 2.76%
• Bharat Forge Ltd - 2.69%

Since its Inception, the ETF has given an annualised return of 32.4%.

The scheme has delivered a return of 53.68% in the last year as of August 2, 2024, against the benchmark returns of 53.99%.