NFO Update: Kotak Mutual Fund launches Kotak Nifty Alpha 50 Index Fund

Kotak Mutual Fund has announced the launch of the Kotak Nifty Alpha 50 Index Fund, an open-ended scheme replicating/tracking the Nifty Alpha 50 Index.

The new fund offer or NFO of the fund is open for subscription and will close on August 11.

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The Nifty Alpha 50 Index comprises 50 high alpha stocks selected from the top 300 companies based on average free-float market capitalization and average daily turnover over the past six months. Stock weights are assigned based on alpha values calculated using one-year trailing prices. This fund offers investors a disciplined, rule-based approach to investing in companies that have historically demonstrated strong alpha-generation potential, according to a press release.

The investment objective of the scheme is to replicate the composition of the NIFTY Alpha 50 Index and to generate returns that are commensurate with the performance of the NIFTY Alpha 50 Index, subject to tracking errors.

The performance of the fund will be benchmarked against Nifty Alpha 50 Index (Total Return Index - TRI) and will be managed by Devender Singhal, Satish Dondapati and Abhishek Bisen.

The minimum application amount is Rs 100 and any amount thereafter.

“At Kotak Mutual Fund, we strive to offer innovative investment solutions that resonate with evolving market dynamics. Markets reward discipline and data over emotions and noise. The Kotak Nifty Alpha 50 Index Fund is designed for investors who wish to tap into a simple idea of investing in high-performing stocks through a quantitative framework,” said Nilesh Shah, Managing Director, Kotak Mahindra AMC.

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"The Nifty Alpha 50 Index has historically delivered strong performance by selecting stocks with higher alpha characteristics. Through a disciplined, rule-based selection process focused on excess returns, this fund aims to offer investors a structured approach to potential long-term capital growth,” said Devender Singhal, Executive Vice President & Fund Manager, Kotak Mahindra AMC.

The fund is suitable for investors seeking long term capital growth and return that corresponds to the performance of Nifty Alpha 50 Index, subject to tracking error.

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