NFO Alert: Kotak Mutual Fund to Launch Kotak BSE Sensex Index Fund

The Kotak BSE Sensex Index Fund is an open-ended scheme that replicates or tracks the performance of the BSE Sensex Index. It falls under the category of index funds and is benchmarked against the BSE Sensex Total Return Index (TRI). 

The fund’s goal is to generate returns matching the index’s performance before accounting for expenses, though there is no guarantee this objective will be achieved.

Key Details

• • NFO Period: 27th January 2025 to 10th February 2025
  • Minimum Investment: ₹100, with any amount thereafter for additional investments
  • Fund Managers: Devender Singhal, Satish Dondapati, and Abhishek Bisen
  • Type of Scheme: Open-ended, index-based
  • Benchmark: BSE Sensex Total Return Index (TRI)

• Risk-o-Meter: The Risk of the Scheme and Benchmark is very high

Investment Objective

The scheme is structured to provide returns corresponding to the total returns of the securities in the BSE Sensex Index. These returns are subject to tracking errors, which can occur due to costs, timing differences, and other factors.

Historical Context and Returns

Over the past 24 years, the BSE Sensex Index has delivered an average annual return of 16%. An investment of ₹1 lakh in the index in 2000 would have grown to ₹21 lakh by 2024. The index has shown positive returns in 19 out of the last 24 calendar years.

Why This Fund?

The fund provides exposure to the 30 largest companies across various sectors in India, offering diversification. Additionally, it operates with lower expense ratios, making it a cost-effective choice for investors seeking to track the index’s performance.

Suitability

This fund may be appropriate for:

• Investors new to equity mutual funds who prefer passive strategies.
• Those looking for exposure to large-cap companies through the BSE Sensex Index.
• Investors with long-term financial goals.

While the fund aims to mirror the performance of the BSE Sensex Index, investors should consider their financial situation and consult with advisors before investing. Past performance does not guarantee future results.

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.