Kotak Mahindra Mutual Fund has introduced the country’s first fund that tracks the MSCI India Index.
This index reflects the performance of large-cap and mid-cap companies in the Indian stock market.
It includes 156 companies, representing about 85 percent of the total Indian equity market.
Some of the biggest Indian companies are part of this index, which represents at least 85 percent of the equity market offered by these companies.
Why Kotak MSCI India ETF is a Good Choice
According to Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, the Kotak MSCI India ETF is an excellent option for both domestic
and foreign investors. This ETF is ideal for those who believe in India’s long-term growth potential and want to be part of India’s market journey.
Subscription Details for Kotak MSCI India ETF
Kotak Mahindra International Limited, a Kotak Group company, launched the Kotak MSCI India ETF to cater to global investors.
The New Fund Offer (NFO) opened for subscription on January 29, 2025, and will remain open until February 12, 2025.
The MSCI India Index is similar to the Sensex or Nifty, with each stock assigned a weight based on factors like dividend returns, company turnover,
and market capitalization. As of December 2024, some of the top stocks in the index include HDFC Bank (7.85%), Reliance Industries (5.80%), ICICI Bank (5.24%), Infosys (4.90%), and Bharti Airtel (3.19%).
The major sectors represented in the index include financials (27.21%), consumer discretionary (13.12%), information technology (12.08%), industrials (9.12%), and energy (8.28%).
Investor Considerations
For Indian investors, the MSCI India Index aligns their portfolio with global investors, which can expose it to foreign institutional selling.
In 2025, foreign institutional investors (FIIs) have sold equities worth Rs 91,760 crore, affecting these stocks.
The value of the fund can fluctuate depending on foreign investors’ confidence in India.
However, Kotak Mahindra Asset Management Company remains optimistic that foreign selling will ease,
and global investors will return to the Indian stock market, boosting stock performance.
Deepak Chhabria, CEO of Axiom Financial Services, explained that the index includes stocks with a large market float, strong corporate governance,
and strong foreign investment. Many of these stocks also have American Depository Receipts (ADRs), making them globally recognized.
For investors keen on India’s growth and market potential, the Kotak MSCI India ETF offers a convenient way to access opportunities in the Indian market without investing directly in individual stocks.
