NFO Alert: Kotak Mutual Fund launches Nifty India Tourism Index Fund

Kotak Mutual Fund has launched Kotak Nifty India Tourism Index Fund, an open-ended scheme replicating/tracking the Nifty India Tourism Index.

The new fund offer or NFO of the scheme is open for subscription and will close on September 16. The scheme will re-open on or before September 30.

The investment objective of the scheme is to provide returns that, before expenses, correspond to the total returns of the securities as represented by the underlying index, subject to tracking errors.


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The scheme is benchmarked against Nifty India Tourism Index (TRI). The scheme will be managed by Devender Singhal, Satish Dondapati, and Abhishek Bisen.

The minimum amount for lumpsum and SIP investment is Rs 100 and any amount thereafter. The scheme will offer regular and direct plans both with growth and IDCW options.

The scheme will allocate 95-100% in equity and equity related securities covered by Nifty India Tourism Index and 0-5% in debt/ money market instruments.

To achieve the investment objective, the scheme will follow a passive investment strategy with investments in stocks in the same proportion as in Nifty India Tourism Index. The investment strategy would revolve around reducing the tracking error through rebalancing of the portfolio, taking into account the change in weights of stocks in the index as well as the incremental collections/redemptions from the scheme.

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"At Kotak Mutual Fund, our aim is to offer investment solutions that align with India's dynamic economic sectors. The Kotak Nifty India Tourism Index Fund opens the door for investors to participate in the booming tourism sector, driven by evolving travel trends and expanding infrastructure. This fund provides an opportunity to benefit from the potential growth of India's tourism industry,” said Nilesh Shah, Managing Director of Kotak Mahindra AMC.

“India’s tourism sector is emerging as a major economic force, with contributions from multiple industries like airlines, hospitality and transport. The Kotak Nifty India Tourism Index Fund is designed to offer investors exposure to this broad ecosystem of growth within the tourism sector. Through this index-based approach, we provide an accessible, relatively cost effective way for investors to participate in the long-term growth of the tourism sector,” said Devender Singhal, Executive Vice President and Fund Manager, Kotak Mahindra AMC.

The scheme is suitable for investors who are seeking long term capital growth and return that corresponds to the performance of Nifty India Tourism Index subject to tracking error. The principal invested in the scheme will be at “very high” risk according to the riskometer of the scheme.