Travel and tourism in India have witnessed a significant surge in recent years, with more people prioritizing experiences over material possessions. Kotak Mahindra Asset Management has tapped into this growing trend by introducing the Kotak Nifty India Tourism Index Fund, an open-ended scheme designed to replicate or track the Nifty India Tourism Index.
Post-COVID, there has been a notable increase in travel, with 25% more people taking three or more trips annually. This growing trend is especially pronounced among Millennials and Gen Z, with 75% preferring to spend on travel rather than on material goods. Foreign tourists are also flocking to India, with 48% visiting for leisure. This surge in travel has created a robust foundation for the Nifty India Tourism Index, which comprises leading companies across various segments of the tourism industry. The index includes companies such as Ease Trip Planners Ltd., IRCTC Ltd., and Indian Hotels Co Ltd., among others, making it a diversified representation of India’s tourism sector.
The Kotak Nifty India Tourism Index Fund aims to provide returns that closely match the total returns of the underlying index, subject to tracking errors. The index is a carefully curated mix of companies involved in travel services, hospitality, and related industries. The fund is managed by seasoned professionals—Mr. Devender Singhal, Mr. Satish Dondapati, and Mr. Abhishek Bisen—who bring their expertise to ensure the fund’s alignment with the Nifty India Tourism Index (TRI). Investors can start with a minimum application amount of Rs 100 in the New Fund Offer (NFO) phase, making it accessible for those looking to capitalize on the booming tourism industry.
Conclusion: As travel continues to rebound and thrive, the Kotak Nifty India Tourism Index Fund offers a timely and potentially rewarding investment opportunity. By mirroring the Nifty India Tourism Index, the fund positions itself as a strategic choice for investors eager to participate in India’s burgeoning tourism sector.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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