by Suman Gupta
- Kotak NIFTY 100 Low Volatility 30 Index Fund is the only Index Fund offered by Kotak Mahindra Mutual Fund that is replicating or tracking the NIFTY 100 Low Volatility 30 Index
- The Nifty 100 Low Volatility 30 Index is a strategic investment index comprising stocks of large market capitalisation, selected from the Nifty 100 Index
- Offers low-cost investment option.
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NFO opens on 22/05/2024; closes on 31/05/2024 |
Mumbai, May , 2024: Kotak Mahindra Asset Management Company Ltd (“KMAMC” / “Kotak Mutual Fund”) has announced the launch of the Kotak Nifty 100 Low Volatility 30 Index Fund, an open-ended scheme replicating or tracking the Nifty 100 Low Volatility 30 Index. The scheme opens for public subscription on May 22nd, 2024, and closes on May 31st, 2024.
The Nifty 100 Low Volatility 30 Index is a strategic investment index comprising stocks of large market capitalisation, selected from the Nifty 100 Index. Focus on low volatility stocks within the Nifty 100 Index ensures a investment portfolio. The selection of securities and its weights are based on volatility for the last one year. It offers a cost-effective and transparent approach to investing in the Indian stock market within the large- cap space.
Nilesh Shah, Managing Director of Kotak Mahindra AMC said during the launch of the NFO, “At Kotak Mutual Fund, we continually strive to provide our investors with diverse investment solutions. The launch of the Kotak Nifty 100 Low Volatility 30 Index Fund is aligned with our commitment to offer products that cater to different risk appetites and investment horizons. Currently, large caps are at reasonable valuations as compared to Midcaps and Small caps. This index fund offers investors an opportunity to invest in a rule-based index that invests in low volatile large-cap companies across different sectors.”
The investment objective of the scheme is to provide returns that, before expenses, correspond to the total returns of the securities as represented by the underlying index, subject to tracking errors.
Key Highlights of the Kotak Nifty 100 Low Volatility 30 Index Fund:
- Volatility Mitigation: Aims to limit the impact of volatility by investing in large market capitalisation and low volatile companies across various sectors.
- Disciplined Investing: Follows a systematic investment approach, ensuring consistency in investment decisions.
- Rule–based Strategy: Adheres to a rule-based, investment strategy, enhancing transparency and reducing subjectivity.
Cost-effectiveness: Offers low-cost investment compared to actively managed funds,
Devender Singhal, Executive Vice President & Fund Manager, Kotak Mahindra AMC added; “Investors looking to invest in large companies and also wanting further lower volatility can now opt for Nifty 100 low volatility 30 index as an investment option. A bouquet of 30 large-cap companies from the Nifty 100 index that constitutes this fund can help investors diversify their portfolio for the long term capital appreciation. We are excited to launch the Kotak Nifty 100 Low Volatility 30 Index Fund NFO.”
The net assets of the scheme will be invested in stocks constituting the NIFTY 100 Low Volatility 30 Index and / or its exchange- traded derivatives maintaining similar weightage as the Index. Equity and equity-related securities, including convertible bonds, debentures, and warrants for equity shares, will be considered for investment. This scheme is suitable for investors who are seeking a long-term capital growth, return that corresponds to the performance of NIFTY 100 Low Volatility 30 Index subject to tracking error.
Past performance may or may not be sustained in future. For more details on the Kotak Nifty 100 Low Volatility 30 Index Fund please visit:https://www.kotakmf.com. For detailed index methodology kindly visithttp://www.niftyindices.com.
Investors may consult their financial expert before making any investment decision.
About Kotak Mahindra Asset Management Co. Ltd.:Kotak Mahindra Asset Management Company Limited (KMAMC) – a wholly owned subsidiary of Kotak Mahindra Bank Limited (Kotak), is the Asset Manager for Kotak Mahindra Mutual Fund (KMF). KMAMC started operations in December 1998 and as of 31st March 2024, has over 58.83 lakh investor folios in various schemes. KMF offers schemes catering to investors with varying risk – return profiles and was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities. The company is present in 94 cities and has 101 branches as of 31st March 2024.
