NFO Alert: Kotak Mutual Fund Launches Nifty Midcap 150 Index Fund

Kotak Mahindra Mutual Fund has introduced the Kotak Nifty Midcap 150 Index Fund, an open-ended index fund that will track the Nifty Midcap 150 Index. This fund aims to replicate the performance of midcap stocks ranked 101-250 based on market capitalization.

Fund Details

The New Fund Offer (NFO) details are as follows:

• Fund Name: Kotak Nifty Midcap 150 Index Fund
• Category: Index Fund
• Benchmark: Nifty Midcap 150 Total Return Index (TRI)
• Fund Type: Open-ended
• Risk Level: Very High
• Fund Managers: Devender Singhal, Satish Dondapati (Equity), Abhishek Bisen (Debt)

NFO Timeline

• NFO Open Date: March 3, 2025
• NFO Close Date: March 17, 2025
• Minimum Investment: ₹100 and any amount thereafter
• Exit Load: NIL

Investment Objective

The fund’s objective is to generate returns in line with the Nifty Midcap 150 Index, subject to tracking error. The scheme does not guarantee or assure any returns.

• 95-100% in Equities (stocks forming part of the Nifty Midcap 150 Index)
• 0-5% in Debt & Money Market Instruments

The fund may use derivatives for short-term adjustments when necessary.

How It Works

This is a passively managed fund, meaning it will not involve stock selection but will instead hold stocks in the same proportion as the index. The portfolio will be rebalanced as per changes in the index.

As per the filing, this fund may be relevant for investors looking for:

• Long-term exposure to midcap stocks
• A passive investment option with lower management costs
• Diversification within the midcap segment

Conclusion

The Kotak Nifty Midcap 150 Index Fund will be available for subscription from March 3 to March 17, 2025. This fund is specifically focused on midcap stocks. Investors should consider the risk factors and market conditions before investing. The fund is available in both Regular and Direct with Growth and IDCW plans.

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 in the securities market are subject to market risks, read all the related documents carefully before investing.