NFO alert! Kotak Mahindra AMC floats Kotak Nifty 100 Low Volatility 30 Index Fund. Check details before investing

Kotak Mahindra Asset Management Company has announced the launch of the Kotak Nifty 100 Low Volatility 30 Index Fund, which is an open-ended scheme that will track the Nifty 100 Low Volatility 30 Index. The scheme opens for public subscription on May 22, 2024, and will close on May 31, 2024. 

The Nifty 100 Low Volatility 30 Index is a strategic investment index comprising stocks of large market capitalisation, selected from the Nifty 100 Index. The investment objective of the scheme 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 net assets of the scheme will be invested in stocks constituting the NIFTY 100 Low Volatility 30 Index and / or its exchange- traded derivatives maintaining similar weightage as the Index. 

Equity and equity-related securities, including convertible bonds, debentures, and warrants for equity shares, will be considered for investment. This scheme is suitable for investors who are seeking a long-term capital growth, return that corresponds to the performance of NIFTY 100 Low Volatility 30 Index subject to tracking error. 

"Focus on low-volatility stocks within the Nifty 100 Index ensures an investment portfolio. The selection of securities and their weights are based on volatility for the last year. It offers a cost-effective and transparent approach to investing in the Indian stock market within the large-cap space," the company said in a statement.

Key Highlights of the Kotak Nifty 100 Low Volatility 30 Index Fund:

Volatility Mitigation: Aims to limit the impact of volatility by investing in large market capitalisation and low volatile companies across various sectors.

Disciplined Investing: Follows a systematic investment approach, ensuring consistency in investment decisions.

Rule-based Strategy: Adheres to a rule-based, investment strategy, enhancing transparency and reducing subjectivity.

Cost-effectiveness: Offers low-cost investment compared to actively managed funds

“The launch of the Kotak Nifty 100 Low Volatility 30 Index Fund is aligned with our commitment to offer products that cater to different risk appetites and investment horizons. Currently, large caps are at reasonable valuations as compared to Midcaps and Small caps. This index fund offers investors an opportunity to invest in a rule-based index that invests in low volatile large-cap companies across different sectors,” said Nilesh Shah, Managing Director of Kotak Mahindra AMC.

“Investors looking to invest in large companies and wanting further lower volatility can now opt for Nifty 100 low volatility 30 index as an investment option. A bouquet of 30 large-cap companies from the Nifty 100 index that constitutes this fund can help investors diversify their portfolio for the long-term capital appreciation. We are excited to launch the Kotak Nifty 100 Low Volatility 30 Index Fund NFO,” said Devender Singhal, Executive Vice President & Fund Manager, Kotak Mahindra AMC.