Kotak Mahindra Mutual Fund launches India's 1st Nifty Alpha 50 ETF
Kotak Mahindra Mutual Fund: It is an open-ended scheme that will track Nifty Alpha 50 index and give investors an opportunity to invest in a well-diversified portfolio of stocks with high Alphas
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Hyderabad: Kotak Mahindra Mutual Fund (MF) on Friday announced the launch of India's first ever Nifty Alpha 50 ETF called the Kotak Nifty Alpha 50 ETF. It is an open-ended scheme that will track Nifty Alpha 50 index and give investors an opportunity to invest in a well-diversified portfolio of stocks with high Alphas. The NFO is open for subscription till 15 December, 2021.
It can also be used as a tool to balance investors' active portfolios, the fund house said in a statement.
Kotak's Nifty Alpha 50 ETF will track 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 last six months.
Nilesh Shah, Group President and Managing Director, Kotak Mahindra Asset Management Co. Ltd. said, "Our decision to launch Kotak Nifty Alpha 50 ETF comes at a time when the market has cooled down and valuations have eased. The diversified stocks in the ETF will be based on Kotak's well-defined strategy that will benefit investors over the long term."
Some key features of this new fund, according to Kotak Mahindra MF:
- Easy to understand
- Low cost as compared to actively managed funds
- Significant Alpha over Nifty 50 and Nifty 100
- No biases as it tracks an index
- Suitable for investors seeking long-term capital growth
