Kotak NASDAQ 100 FOF NFO
Kotak Mutual Fund has announced the launch of Kotak NASDAQ 100 FOF (Fund of Funds). The scheme would be investing in units of overseas ETFs and/or index funds based on the NASDAQ 100 Index.
The New Fund Offer (NFO) starts from 11th January 2021 and will end on 25th January 2021.
Investment Objective
The investment objective of the scheme is to provide long-term capital growth by investing in units of overseas ETFs and/or Index funds based on the NASDAQ 100 Index.
What is the NASDAQ 100 Index?
NASDAQ 100 is one of the world’s prominent large-cap growth indices. NASDAQ 100 consists of 100 stocks of large domestic and international companies listed on the NASDAQ stock exchange. NASDAQ 100 is well known for its technology stocks like Apple, Alphabet, Microsoft, and many more. It has a very long track record of performance since its inception in January 1985.
Exposures of NASDAQ 100 Index compared with NIFTY 50:
| Sector | NASDAQ 100 | NIFTY 50 |
| Financials | - | 38.8% |
| Information Technology | 47.9% | 16.3% |
| Energy | - | 12.6% |
| Consumer Staples | 5.2% | 8.4% |
| Materials | - | 6.7% |
| Consumer Discretionary | 19.2% | 6.5% |
| Health Care | 6.4% | 3.6% |
| Industrials | 1.9% | 3.2% |
| Communication Services | 18.4% | 2.0% |
| Utilities | 1.0% | 2.0% |
Top Constituents of NASDAQ 100 Index
| Name of Company | Weightage | Sector |
| Apple | 12.3% | IT (Information Technology) |
| Microsoft | 9.1% | IT (Information Technology) |
| Amazon | 8.9% | Consumer Discretionary |
| Tesla | 4.5% | Consumer Discretionary |
| Facebook Inc. | 3.6% | Communication services |
| Alphabet Inc. | 3.1% | Communication services |
| Alphabet Inc. A | 2.9% | Communication services |
| Nvidia Corp. | 2.7% | IT (Information Technology) |
| Paypal Holdings | 2.3% | IT (Information Technology) |
| Adobe Inc. | 2.0% | IT (Information Technology) |
Features
- The Fund will be investing at least 95% of its assets in units of overseas ETFs and/or index funds based on the NASDAQ 100 Index.
- Fund offers exposure to the companies which are listed on the US stock exchange.
- The index reflects the companies from sectors like computer hardware & software, retail or wholesale trade, biotechnology, and telecommunications.
Why invest in Kotak NASDAQ 100 Fund of Fund?
- It gives exposure to the world’s most innovative & largest companies not listed in India.
- It gives diversification benefits to investors because of the low correlation between the domestic & US markets.
- The Fund also provides a hedge against the depreciating Indian Rupee.
- The NASDAQ 100 Index is well known for its underlying technology stocks like Apple, Microsoft, Netflix, and many more which have been able to generate high returns for investors in the past.
- The NASDAQ 100 Index has shown outperformance relative to the Indian markets many times in the last 10 years.
- The NASDAQ 100 Index has a proven long track record of good performance.
Who Should Invest?
This scheme is suitable for investors who are -
- Interested in long-term capital growth.
- Interested in capital growth and income by making investments in units of overseas ETFs and/or Index funds based on NASDAQ 100 Index.
- Interested in earning returns that closely correspond to the returns generated by the NASDAQ 100 Index, subject to tracking errors.
- Recommended for investors with an investment horizon of 5 years & above.
Asset Allocation Pattern-
| Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) | Risk Profile |
| Units of overseas ETFs and/or Index fund based on NASDAQ 100 Index | 95% | 100% | High |
| Debt and money market instruments and units of other domestic debt & liquid schemes | 0% | 5% | Low to Moderate |
About the scheme-
| Name of the fund | Kotak NASDAQ 100 FOF |
| Fund launched by | Kotak Mahindra Mutual Fund |
| Asset Management Company | Kotak Mahindra Asset Management Limited |
| Type of scheme | An open-ended FoF scheme investing in units of foreign ETFs and index funds based on the NASDAQ 100 Index. |
| Investment Objective | The investment objective of the scheme is to generate long-term capital growth through investments in units of overseas ETFs and index funds based on the NASDAQ 100 Index. |
| Benchmark | NASDAQ 100 TRI |
| Entry Load | Not Applicable |
| Exit Load | Not Applicable |
| Minimum Application Amount | ₹ 5,000 & in multiple of ₹ 1 thereafter |
| Minimum Additional Amount | ₹ 1,000 & in multiple of ₹ 1 thereafter |
| SIP Top-up, STP,DTP & SWP | Available |
| Plans Available |
|
| Options |
|
| Fund Managers | Mr. Arjun Khanna and Mr. Abhishek Bisen (Debt Securities) |
SIP Details
| Type | Minimum Installments | Minimum Amount |
| Monthly SIP | 6 | ₹ 1,000 & in multiples of ₹ 1 thereafter |
| Quarterly SIP | 6 | ₹ 1,000 & in multiples of ₹ 1 thereafter |
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