Kotak Nifty Smallcap 50 Index Fund NFO: Everything you need to know

Kotak Mahindra Mutual Fund is launching NFO under its “index fund category”, named as Kotak Nifty Smallcap 50 Index Fund. This open-ended fund will invest in stocks comprising the underlying index and endeavours to track the benchmark index, subject to tracking errors.

Investment strategy: To achieve the investment objective, the scheme will follow passive investment strategy with investments in stocks in the same proportion as in Nifty Smallcap 50 Index. The investment strategy would revolve around reducing the tracking error to the least possible through rebalancing of the portfolio. 

Asset allocation: The net assets of the Scheme will be invested in stocks constituting the Nifty Smallcap 50 Index and / or its exchange traded derivatives.

Who should invest?

Investors with very high risk appetite and want to invest for 7 to 10 years in a mutual fund should invest in Kotak Nifty Smallcap 50 Index Fund. Those who want to diversify their investments across companies of different market caps should invest in the fund.

Risk associated: Very high level of risk.

Benchmark: Nifty Smallcap 50 Index.

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

The NFO is available for subscription from March 16 to March 29. 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 Income options. Click here to invest in Kotak Nifty Smallcap 50 Index Fund.