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	Regular Direct
Options	Growth
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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