New Fund Offer: Kotak AMC launches India’s first ever Nifty Alpha 50 ETF – check details

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.

mutual funds
Mutual Funds/Representative image

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.

NFO dates

The new fund is open for subscription from December 1, 2021 to December 15, 2021.

ALSO READ | Planning to invest in a new fund offer? Check if it is a good or bad idea

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.)

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Story
Your Money: Types of mutual funds and the risks they carry
Photos