Kotak Mahindra Mutual Fund has submitted a draft for the Kotak Nifty Alpha 50 Index Fund. This is an open-ended index fund that will replicate the Nifty Alpha 50 Index. The scheme aims to generate returns corresponding to the index’s performance, subject to tracking errors​.

Investment Allocation

The fund’s portfolio will consist of 95-100% equity investments in stocks that form part of the Nifty Alpha 50 Index. The remaining 0-5% can be allocated to debt or money market instruments. The fund may also use derivatives for short durations if needed​.

Nifty Alpha 50 Index 

The Nifty Alpha 50 Index consists of 50 stocks, selected based on their alpha values, which measure excess returns over the market. The index is reviewed quarterly using stock data from February, May, August, and November. The stocks with the highest alpha values are given greater weight​.

The fund will benchmark its performance against the Nifty Alpha 50 Index (Total Return Index – TRI). Since it follows a passive investment strategy, it is subject to tracking errors, which may arise due to cash holdings, redemption pressures, and transaction costs​.

Fund Managers

The scheme will be managed by Devender Singhal and Satish Dondapati, while Abhishek Bisen will handle debt investments. Singhal has over 22 years of experience in equity research and fund management, while Dondapati specializes in ETFs and index funds​.

Minimum Investment and Redemption

• Minimum purchase: ₹100 and in multiples thereafter.
• Minimum additional investment: ₹100.
• Minimum redemption: ₹100 or account balance, whichever is lower​.

The scheme allows daily buying and selling of units based on Net Asset Value (NAV). NAV will be published daily on the Kotak Mahindra Mutual Fund and AMFI websites​.

Fund Expenses and Exit Load

The total expense ratio (TER) will be capped at 1% of daily net assets, covering management fees, marketing expenses, and other costs. The fund has no exit load, meaning investors can redeem units without incurring additional charges​.

The Kotak Nifty Alpha 50 Index Fund is designed for investors looking to track a high-alpha index without active management. It provides exposure to stocks with good historical performance while maintaining a rule-based approach.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

Kotak Mahindra Mutual Fund has filed a draft scheme document with the Securities and Exchange Board of India (SEBI) for the Kotak Nifty 200 Quality 30 Index Fund, an open-ended index fund that will track the Nifty 200 Quality 30 Index. 

The fund aims to replicate the index’s composition and generate returns corresponding to its performance, subject to tracking errors.

Fund Structure and Objective

The Kotak Nifty 200 Quality 30 Index Fund is an index-based scheme that will passively invest in the stocks included in the Nifty 200 Quality 30 Index, maintaining their respective weights. The objective is to provide investors exposure to companies selected based on return on equity (ROE), earnings growth stability, and financial leverage.

The fund does not actively manage stock selection but rather mirrors the benchmark index. There is no guarantee of returns, and the fund’s performance will depend on the movement of the underlying index.

Asset Allocation

• 95-100% of the fund’s assets will be invested in equities that are part of the Nifty 200 Quality 30 Index.
• Up to 5% may be allocated to debt or money market instruments to manage liquidity.
• No investments in foreign securities, REITs, InvITs, or structured obligations.

New Fund Offer (NFO) Details

• Issue Price: ₹10 per unit
• Minimum Investment: ₹100 and in multiples of ₹1 thereafter
• Liquidity: Open for subscription and redemption on all business days post-NFO
• Benchmark: Nifty 200 Quality 30 Index (Total Return Index)

These details are outlined in the fund’s offer document, providing essential information for investors considering participation in the New Fund Offering (NFO).

Fund Management 

The fund will be managed by Devender Singhal and Satish Dondapati, with Abhishek Bisen handling the debt portion. Since it’s an index fund, returns will depend on how the underlying stocks perform. Investors may want to go through the offer document before deciding to invest.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

Bajaj Finserv Mutual Fund has launched a New Fund Offering (NFO) with its Multi Cap Fund – Regular (G), opening doors for investors looking to diversify across large, mid, and small-cap stocks. The open-ended equity scheme aims for long-term capital appreciation by investing in companies of varying market capitalisations.

Investment Details

Subscription Window and Exit Load

The NFO opens on February 6, 2025, and will be available for subscription until February 20, 2025. Investors can enter with a minimum investment of ₹500, with additional investments in increments of ₹100. Since it is an open-ended scheme, investors can continue investing even after the NFO period ends. 

However, an exit load may apply if units are redeemed within a specific timeframe, details of which will be disclosed in the scheme documents.

Why Multi Cap Investing?

A multi-cap fund offers exposure to a mix of large, mid, and small-cap stocks, balancing stability with growth potential. Large-cap companies provide reliability, mid-cap stocks offer growth opportunities, and small-cap investments introduce high-risk, high-reward possibilities. This approach helps spread risk while capturing potential across market segments.

Fund Objective 

The Bajaj Finserv Multi Cap Fund is for investors seeking long-term capital appreciation. While the scheme aims to deliver returns by investing in equity and equity-related instruments across market capitalizations, there is no guarantee of achieving its stated objective. Given its very high risk level, investors should align their financial goals and risk appetite before committing funds.

With daily NAV calculations, transparent pricing, and fund management by Nimesh Chandan, the scheme presents an option for those looking to diversify their equity investments across market caps. Investors should evaluate the fund’s strategy in alignment with their portfolio goals before subscribing.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

HSBC Mutual Fund has launched the HSBC Financial Services Fund, an open-ended equity scheme focused on the financial sector. The New Fund Offer (NFO) will be open for subscription from February 6, 2025, to February 20, 2025.

Investment Objective

The scheme aims to achieve long-term capital appreciation by investing mainly in equity and equity-related securities of companies in the financial services sector. This includes banks, NBFCs, insurance companies, and other financial institutions.

Basic Details

• Fund House: HSBC Mutual Fund
• Category: Equity – Sectoral (Banking & Financial Services)
• Fund Type: Open-ended
• Minimum Investment: ₹5,000
• Investment Plans: Growth, IDCW (Income Distribution cum Capital Withdrawal)
• Lock-in Period: None
• Exit Load: 1% on redemption exceeding 10% of investment within one year
• Risk Level: Very High (as per the riskometer)
• Benchmark Index: BSE Financial Services TRI

Fund Management

The fund will be managed by Gautam Bhupal. Computer Age Management Services Ltd. (CAMS) is the Registrar & Transfer Agent for this scheme.

Being a sectoral fund, it invests only in the financial services sector. Its performance is directly tied to how the financial sector performs. Investors with a high-risk appetite and a long-term investment outlook may consider it.

Liquidity and Redemption

Since it is an open-ended fund, investors can buy or sell units at any time. However, an exit load of 1% applies if more than 10% of the investment is redeemed within one year.

In conclusion, sectoral funds concentrate on a specific industry, which can lead to higher risk and potential rewards. Investors should assess whether a financial services-focused fund aligns with their portfolio and risk tolerance before investing.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

DSP Mutual Fund has announced changes to the fundamental attributes of DSP Global Allocation Fund of Fund. These changes, which include a shift in investment focus, a new name, a revised benchmark, and a change in risk classification, will be effective from March 11, 2025.

Change in Scheme Name

The fund will now be called DSP Income Plus Arbitrage Fund of Fund, replacing its earlier name. This renaming aligns with the shift in its investment objective.

The scheme will now be managed by Kaivalya Nadkarni (Arbitrage) and Shantanu Godambe (Debt).

Updated Objective and Asset Allocation

The revised objective focuses on generating income by investing in units of debt-oriented mutual fund schemes and arbitrage schemes. The updated asset allocation states that 95%-100% of the fund’s assets will now be invested in these categories. The earlier strategy, which involved exposure to global markets, has been removed.

Change in Benchmark

The benchmark has been changed from the MSCI All Country World Total Return Index to a combination of:

• CRISIL Dynamic Bond A-III Index (60%)
• NIFTY 50 Arbitrage Index (40%)

The risk classification has been adjusted from “Very High” to “Moderate” due to the shift from international equity exposure to debt and arbitrage investments.

Exit Option for Investors

Investors who do not agree with these changes can exit the scheme without any exit load during a 32-day exit window from February 7, 2025, to March 10, 2025. Investors who are fine with the changes are not required to take any action.

These changes alter the structure and strategy of the fund, shifting its focus from global exposure to a domestic income-based approach.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

DSP Mutual Fund has declared income distribution under the Income Distribution cum Capital Withdrawal (IDCW) option for some of its schemes. The record date for this distribution is February 6, 2025.

Distribution Details

Investors holding units in the specified schemes on the record date will be eligible to receive the income distribution. The per-unit payout for each scheme is as follows:

Understanding IDCW

IDCW, formerly referred to as dividends in mutual funds, involves periodic payouts from a scheme’s distributable surplus. These payouts depend on the availability of funds and are not fixed. Investors should note that IDCW is subject to taxation, with tax deducted at source (TDS) applicable in some cases.

Record Date and Eligibility

The record date determines eligibility for the income distribution. Only unit holders whose names appear in the fund records by the end of February 6, 2025, will receive the announced payouts. Investors who purchase units after this date will not be eligible for the current distribution.

Other Considerations

These IDCW distributions provide existing investors with an income payout. Those considering mutual fund investments should assess their financial goals and tax implications before selecting between IDCW and growth options.

Want to plan regular withdrawals? Our SWP Calculator helps you calculate how much you can withdraw while keeping your investments intact. Try it now!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.