Kotak Mahindra Mutual Fund has introduced the Kotak Nifty 100 Equal Weight ETF, an open-ended exchange-traded fund (ETF) to track the Nifty 100 Equal Weight Index. Unlike traditional market-cap-weighted indices, this index will help ensure equal allocation across 100 stocks, reducing reliance on a few large companies. The fund follows a passive investment approach, adjusting holdings as per index rebalancing.
The New Fund Offer (NFO) period begins on February 3, 2025, and closes on February 17, 2025. Investors can enter with a minimum investment of ₹5,000. The fund does not require incremental investments beyond the initial amount.
Feature | Details |
NFO Dates | February 3, 2025 – February 17, 2025 |
Exit Load | Nil |
Risk Level | Very High |
Fund Manager | Devender Singhal |
Benchmark | Nifty 100 Equal Weight Index (Total Return Index – TRI) |
NAV Calculation | Daily |
Repurchase/Redemption | Through stock exchanges at market prices |
The scheme aims to replicate the Nifty 100 Equal Weight Index, seeking returns in line with its performance. However, tracking errors may cause deviations, and there is no guarantee of returns.
The fund is managed by Devender Singhal, who oversees multiple equity strategies at Kotak Mutual Fund. Since this ETF is fully invested in equities, it carries a very high-risk classification, making it suitable for investors with a long-term horizon.
The ETF is benchmarked against the Nifty 100 Equal Weight Index (Total Return Index – TRI). Units will be listed on stock exchanges and traded at market prices. Investors can buy and sell units during trading hours, similar to regular stocks. The Net Asset Value (NAV) will be calculated daily and published on the fund’s website.
Traditional index funds allocate a higher weight to large-cap stocks, leading to concentration in a few companies. This ETF distributes weight equally among 100 stocks, ensuring broader diversification. However, returns will still be subject to overall market movements.
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.
Published on: Feb 3, 2025, 3:08 PM IST
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