Kotak Nifty 200 Momentum 30 Index Fund NFO: Everything you need to know

Kotak Mahindra Mutual Fund is launching NFO under its “Index fund category”, named as Kotak Nifty 200 Momentum 30 Index Fund. This open-ended fund aims to provide returns that, before expenses, corresponding to the total returns of the securities as represented by the underlying index, subject to tracking error.

Investment strategy: To achieve the investment objective, the scheme will follow passive investment strategy with investments in stocks in the same proportion as in Nifty200 Momentum 30 Index. The investment strategy would revolve around reducing the tracking error to the least possible 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.

Asset allocation: The net assets of the Scheme will be invested in stocks constituting the Nifty 200 Momentum 30 Index and / or its exchange traded derivatives. It may also invest in units of mutual fund, debt and money market instruments to achieve liquidity. 

Who should invest?

Investors with very high risk appetite and want to invest for 5 to 7 years in a mutual fund should invest in Kotak Nifty 200 Momentum 30 Index Fund. 

Risk associated: Very high level of risk.

Benchmark: Nifty200 Momentum 30 Index.

Fund Managers: Mr. Devender Singhal, Mr. Satish Dondapati and Mr. Abhishek Bisen.

The NFO is available for subscription from May 25 to June 08. The schemes will reopen for continuous sale and repurchase within five Business Days from the date of allotment. The fund offers systematic investment solutions like SIP and SWP to create a flexible investment plan. The minimum subscription amount is Rs 5000/- and in multiples of any amount thereafter. 

It offers Regular Plan and Direct Plan. Each plan offers Growth and IDCW options. Click here to invest in Kotak Nifty200 Momentum 30 Index Fund.