Kotak Mahindra Asset Management Company Limited today (December 3, 2021) announced the launch of India’s first-ever Nifty Alpha 50 ETF, Kotak Nifty Alpha 50 ETF.
In a statement, Kotak AMC said, it is an open-ended scheme that will track Nifty Alpha 50 index and gives investors an opportunity to invest in a well-diversified portfolio of stocks with high Alphas. It can also be used as a tool to balance investors’ active portfolios.
As per the statement, Kotak’s Nifty Alpha 50 ETF will track the performance of 50 stocks listed with NSE with high Alpha’s in the last one year. These companies are selected from top 300 companies by average free-float market capitalization and average daily turnover for the last six months.
What is Alpha?
Alpha, also referred to as ‘excess return’, is a term that measures the return earned by a stock above or below demanded by the market for its risk class.
The new fund is open for subscription from December 1, 2021 to December 15, 2021.
Commenting on the NFO, Nilesh Shah, Group President and Managing Director, Kotak Mahindra Asset Management Co. Ltd. said, “Our decision to launch Kotak Nifty Alpha 50 ETF comes at a time when the market has cooled down and valuations have eased. The diversified stocks in the ETF will be based on Kotak’s well defined strategy that will benefit investors over the long term”.
The AMC further said that Kotak Nifty Alpha 50 ETF will be suitable for iinvestors seeking long-term capital growth.
(Investment in mutual funds is subject to market risks. Please consult your financial advisor before investing in an NFO.)