Kotak S&P BSE Housing Index Fund NFO: Essential details you need to know

8 Aug 2023 , 02:04 PM

Kotak Mahindra Mutual Fund has launched NFO under its “index fund category”, named as Kotak S&P BSE Housing Index Fund. This open-ended fund aims to replicate the composition of the S& P BSE Housing Index and to generate returns that are commensurate with the performance of the S& P BSE Housing Index, subject to tracking errors.

Investment strategy: Index Scheme being a passive investment carries lesser risk as compared to active fund management. The portfolio follows the index and therefore the level of stock concentration in the portfolio and its volatility would be the same as that of the index, subject to tracking error..

Asset allocation: The net assets of the Scheme will be invested in stocks constituting the S&P BSE Housing Index and / or its exchange traded derivatives.

Who should invest?

Investors with very high risk appetite and want to invest for 5 to 7 years in a housing sector mutual fund should invest in Kotak S&P BSE Housing Index Fund. 

Risk associated: Very high level of risk.

Benchmark: S& P BSE Housing Index.

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

The NFO is available for subscription from August 7 to August 21. 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 S&P BSE Housing Index Fund.