Kotak Mutual Fund is launching a new open-ended scheme Kotak Nifty ETF. The scheme is like any another Nifty ETF, floating in the market. The investment objective of the fund is to provide returns that closely correspond to the total returns of the S&P CNX Nifty.
The Indicative allocation is 90 to 100% in the stocks comprising S&P CNX Nifty and 0 to 10% in Debt and Money market instruments. The units of the scheme will be listed on NSE and Investors can buy or sell units on the stock exchange.
The minimum investment amount during new fund offer is Rs.10,000 and in multiples of further purchases can be made once the units are listed on the exchange.The nav of the units is closely related to value stocks that form a part nifty.
We already have similar schemes like Nifty Bees and couple of other similar schemes listed. You can read more about at What is Nifty Bees and the Update.
What should investors do?
ETF being a passive investment carries lesser risk as compared to active fund management. The portfolio follows the index and therefore the returns depend on the performance of the index. Hence investors can invest in this scheme and also in a systematic manner once the units are listed on the NSE.
Well written article. Kotak Nifty ETF is a good fund to invest.
This is similar like Nifty Bees, so one can invest.
It is better to invest, when markets correct atleast 10-15%.
It actually looks like a good fund to invest. there are a lot of similar investment schemes nowadays. it's good that there is less risk.