Kotak Mahindra Mutual Fund launches India's first Nifty Alpha 50 ETF

Kotak Mahindra Mutual Fund has launched 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 gives investors an opportunity to invest in a well-diversified portfolio of stocks with high Alphas. The NFO is open for subscription till December 15.

According to the fund house, this ETF can also be used as a tool to balance investors’ active portfolios.

Kotak’s Nifty Alpha 50 ETF will track the performance of 50 stocks listed with NSE with high Alpha 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.

“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 welldefined strategy that will benefit investors over the long term,” said Nilesh Shah, Group President and Managing Director, Kotak Mahindra Asset Management.

Here are some features of this new fund, according to the mutual fund house:

– Since it is a passive fund, it is easy to understand

– Low cost as compared to actively managed funds

– Can generate significant Alpha over Nifty 50 and Nifty 100

– No biases as it tracks an index

– Suitable for investors seeking long-term capital growth


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