NFO Update: Kotak Mutual Fund launches BSE Sensex Index Fund

Kotak Mutual Fund has announced the launch of Kotak BSE Sensex Index Fund, an open-ended scheme replicating/tracking the BSE Sensex Index.

The new fund offer or NFO of the scheme will open for subscription on January 27 and close on February 10. The scheme will reopen for continuous sale and repurchase on February 17.

Also Read | MF Tracker: Will 2024 topper Motilal Oswal Midcap Fund retain investor interest in 2025?


The investment objective 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.

The scheme will be benchmarked against the BSE Sensex Index (Total Return Index (TRI)) and managed by Devender Singhal, Satish Dondapati, and Abhishek Bisen. It will offer regular and direct plans both with growth and IDCW options.

The minimum amount for application in the NFO of scheme is Rs 100 and any amount thereafter. For SIP purchase, the minimum amount is Rs 100 and any amount thereafter. The scheme will allocate 95-100% in equity and equity related securities covered by BSE Sensex 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 the BSE Sensex Index. The investment strategy would revolve around reducing the tracking error through rebalancing the portfolio, taking into account the change in weights of stocks in the index as well as the incremental collections/redemptions from the scheme.

Also Read | 23 midcap MFs outperformed their benchmarks in the past year. Have you invested in any?

The maximum total expenses ratio (TER) permissible under Regulation 52(6)(b) is up to 1%. The exit load will be nil. The principal invested in the scheme will be at “very high risk” according to the riskometer of the scheme.

The scheme will be suitable for investors seeking long-term capital growth and want a return that corresponds to the performance of the BSE Sensex Index, subject to tracking error.