Home > General > Kotak Mahindra Mutual Fund launches Kotak Nifty ETF

Kotak Mahindra Mutual Fund launches Kotak Nifty ETF

Kotak Mahindra Asset Management Company, one of India’s leading mutual fund houses, today announced the launch of Kotak Nifty ETF – an exchange traded fund focusing on investing in stocks that comprise the S&P CNX Nifty. The open ended ETF aims to provide returns before expenses that closely correspond to the total returns of the S&P CNX Nifty, subject to tracking errors. The New Fund Offer (NFO) will be open for subscription from January 11, 2010 to January 19, 2010.

Kotak Mahindra Asset Management Company currently operates a Gold ETF, a PSU Bank ETF and a SENSEX ETF. Kotak Nifty ETF will be listed and can be traded on The National Stock Exchange (NSE). The fund manager would invest predominantly in stocks forming part of the underlying in the same ratio and any investor eligible to invest in equity shares can invest in the scheme. Each unit of the Kotak Nifty ETF will be approximately equal to 1/10th of the value of the S&P CNX Nifty.

Speaking on the new fund, Sandesh Kirkire, Chief Executive Officer, Kotak Mahindra Asset Management Company said, “The addition of Kotak Nifty ETF further strengthens our ETF product suite and reinforces our commitment to provide diverse investment options to cater to the requirement of our investors. Kotak Nifty ETF caters to each and every class of investor- from long term investors to arbitrageurs, institution and FIIs while offering the advantages of portfolio diversification, low cost, trading flexibility and minimal tracking error”.

The Kotak Nifty ETF offers investors exposure to Nifty with a single order. It is like any other listed share enabling intra day buying and selling. Also with the underlying being similar to Nifty futures, the fund provides hedging and arbitrage possibilities. The minimum investment amount during the New Fund Offer is Rs 10, 000 and in multiples of Rs 1, 000 thereafter. In case of investors opting to switch into the scheme from existing schemes/plan/options of the fund during the NFO period, the minimum amount is Rs 10,000 and in multiples of Re 0.01 thereof.

Source: Indiaprwire

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