Kotak Mutual Fund has launched a new investment option for investors looking for long-term capital growth.
The fund house has introduced the Kotak Nifty200 Value 30 Index Fund, which is an open-ended index fund. This fund follows a passive investment strategy.
The New Fund Offer (NFO) for this scheme opened on January 15 and will remain open for subscription until January 29. Investors can subscribe to the fund during this period at the NFO price.
Fund Objective and Index Tracking
The Kotak Nifty200 Value 30 Index Fund is a passively managed fund that aims to track the performance of the Nifty 200 Value 30 Index. This index includes 30 companies selected from the Nifty 200 universe.
These companies are chosen based on their ‘Value’ score, which is calculated using several important financial indicators. These include:
Earnings to Price (E/P)
Book Value to Price (B/P)
Sales to Price (S/P)
Dividend Yield
By using these parameters, the index focuses on companies that are considered strong but reasonably valued. This allows investors to gain exposure to a value-oriented equity portfolio, making it suitable as part of a long-term asset allocation strategy.
Minimum Investment and Fund Management Details
One of the key highlights of this fund is its low entry point. Investors can start investing with a minimum amount of ₹100, and any additional investment can also be made in multiples of ₹100.
Systematic Investment Plans (SIPs) are also available and can be started with just ₹100, making the fund accessible to small and first-time investors.
The performance of the fund will be measured against the Nifty200 Value 30 Index (TRI).
The fund will be managed by Devendra Singhal and Satish Dondapati, who will ensure that the fund closely tracks the index, within permissible tracking error limits.
Who Should Consider Investing in This Fund?
This scheme is suitable for investors who are looking for long-term capital growth and are comfortable with market-linked returns.
The fund is ideal for those who want returns that closely match the performance of the Nifty200 Value 30 Index.
Since the fund follows a passive strategy, it may be suitable for investors who prefer low-cost, rule-based investing. Importantly, there is no exit load, which means investors can redeem their units without paying any penalty.
Sector Allocation of the Fund
According to information shared by the fund house, the sector-wise allocation of the Kotak Nifty200 Value 30 Index Fund is as follows:
Financial Services: 35.5%
Oil, Gas & Consumable Fuels: 27.5%
Metals & Mining: 17.3%
Power: 9.5%
Automobiles & Auto Components: 5%
Construction Materials: 4%
Chemicals: 1.2%
This allocation shows a strong focus on core sectors of the economy, offering diversification across multiple industries.
Fund House’s View on the New Launch
Commenting on the launch, Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, said that the Kotak Nifty200 Value 30 Index Fund is designed for investors who are seeking value-oriented equity exposure through companies that are financially strong and trading at reasonable valuations.
He added that this fund allows investors to participate in the value investing journey while also helping Kotak Mutual Fund expand its passive investment offerings.
