Kotak Nifty Next 50 Index Fund NFO
Kotak Mahindra Mutual Fund has announced the launch of Kotak Nifty Next 50 Index Fund. The scheme would be investing its assets in the securities constituting the Nifty Next 50 Index. This fund aims to replicate the performance of its underlying Index.
The New Fund Offer (NFO) starts from 17th February 2021 and will end on 24th February 2021. The fund will reopen on 10th March 2021.
Investment Objective
The investment objective of the scheme is to provide long-term capital growth by investing in the same equity securities & in the same proportion as the Nifty Next 50 Index. This index aims to track the performance of the Nifty Next 50 index, subject to any tracking errors and expenses.
What is the Nifty Next 50 Index?
Nifty Next 50 index consists of the companies which rank from 51th to 100th rank in terms of market capitalization. These companies are large-cap companies. The index captures the potential bluechips of tomorrow. The Nifty Next 50 index is more diversified as compared to the Nifty 50 Index. Also, the index has shown better or similar returns to the Nifty Midcap 150 index in the past years with lesser risk.
Nifty Next 50 Index Sector Allocation:
| Sector | Weightage |
| Consumer Goods | 29.14% |
| Financial Services | 19.55% |
| Pharma | 12.46% |
| IT | 6.60% |
| Oil & Gas | 5.86% |
| Power | 5.85% |
| Cement & Cement Products | 3.54% |
| Automobile | 3.43% |
| Services | 3.01% |
| Chemicals | 2.87% |
| Telecom | 2.46% |
| Metals | 1.87% |
| Others | 3.36% |
*As of 31st January 2021
Features
- The Fund will be investing its assets in the equity securities constituting the Nifty Next 50 Index.
- The investments will be made in the same securities & in the same proportions as per the weightage in the underlying index.
- As it aims to track the performance of the Nifty Next 50 Index, investors can expect similar returns to that of the underlying index from this fund, less any tracking errors & expenses.
Why invest in the Nifty Next 50 Index Fund?
- Nifty Next 50 index is a well-diversified large-cap index. It has the potential to give good returns relatively with lesser risks.
- Though Nifty Next 50 index has underperformed the Nifty 50 Index in the past years, the index has shown long-term outperformance.
- This index fund presents a strategy to balance the portfolio of an active investor.
- As the Kotak Nifty Next 50 is an index fund, it has low costs compared to active funds.
Who Should Invest?
This scheme is suitable for investors who are -
- Interested in long-term capital growth.
- Interested in passive investment in equity securities of the Nifty Next 50 Index.
- Interested in earning returns that closely correspond to the returns generated by the Nifty Next 50 Index, subject to tracking errors and expenses.
- 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 |
| Equity & equity related securities representing the Nifty Next 50 Index | 95% | 100% | Moderate to High |
| Money market instruments and Debt securities | 0% | 5% | Low to Moderate |
About the scheme-
| Name of the fund | Kotak Nifty Next 50 Index Fund |
| Fund launched by | Kotak Mahindra Mutual Fund |
| Asset Management Company | Kotak Mahindra Asset Management Limited |
| Type of scheme | An open-ended scheme that will replicate the Nifty Next 50 Index. |
| Investment Objective | The investment objective of the scheme is to generate long-term capital growth by replicating the Nifty Next 50 Index and to generate similar performance as of the Nifty Next 50 Index, less any tracking errors & expenses. |
| Benchmark | Nifty Next 50 Index 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 |
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| Fund Managers | Mr. Devender Singhal and Mr. Satish Dondapati |
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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