Kotak Mutual Fund has launched a new scheme called the Kotak Nifty200 Value 30 Index Fund, which is good news for investors looking for long-term capital growth.
It is an open-ended index fund. The New Fund Offer (NFO) opened on January 15 and will close on January 29.
About Kotak Nifty200 Value 30 Index Fund
This is a passively managed fund that follows the Nifty 200 Value 30 Index. The index includes 30 companies selected from the Nifty 200 universe based on their value score.
The value score is calculated using key financial ratios such as Earnings-to-Price (E/P), Book Value-to-Price (B/P), Sales-to-Price (S/P), and Dividend Yield.
Through this method, the fund gives investors exposure to value-based equity stocks, making it suitable for overall asset allocation.
Investment Amount and Fund Management
Investors can start investing with a minimum amount of ₹100, and additional investments can be made with any amount. SIP investments are also allowed starting from ₹100.
The fund’s performance will be compared with the Nifty200 Value 30 Index (TRI).
The scheme will be managed by Devendra Singhal and Satish Dondapati.
Who Should Invest in This Fund?
This fund is suitable for investors who are looking for long-term capital growth and want returns that closely match the Nifty200 Value 30 Index, subject to tracking error.
There is no exit load on this fund.
Sector Allocation of the Fund
As per the fund house, the sector-wise allocation 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%
What Kotak AMC’s MD Said
Nilesh Shah, Managing Director of Kotak Mahindra AMC, said that the Kotak Nifty200 Value 30 Index Fund is designed for investors who want value-oriented equity exposure by investing in strong companies available at reasonable valuations.
He added that this index fund allows investors to be part of this journey while also strengthening Kotak’s passive investment offerings.
