‘Kotak Nifty Financial Services Ex-Bank Index Fund’, An open-ended scheme replicating/tracking Nifty Financial Services Ex-Bank Index. The fund will invest in the top 30 companies of the financial services sector, except banks; and each stock is based on a free-float market capitalization that is part of the Nifty 500 Index.
The NFO will be open for subscription from July 24th, 2023 and will end on August 7th, 2023. Within five Business Days following the date of allotment, the Schemes will reopen for continuous sale and repurchase. Subscriptions can be made starting at Rs. 5,000 and in multiples of Rs. 1/-. Both a Regular Plan and a Direct Plan are available.
About Kotak Mahindra Mutual Fund
Kotak Mahindra Asset Management Company Limited (KMAMC), an esteemed subsidiary of Kotak Mahindra Bank Limited (Kotak). As the trusted Asset Manager for Kotak Mahindra Mutual Fund (KMF), KMAMC has been driving financial excellence since its inception in December 1998. With a remarkable investor base of approximately 48.65 lakh folios across various schemes as of 31st March 2023, KMF stands as a beacon of opportunity.
Dedicated to serving investors with diverse risk-return preferences, KMF proudly offers a comprehensive range of schemes. Pioneering the financial landscape, KMF holds the distinction of being the first fund house in the country to introduce a dedicated gilt scheme, exclusively investing in government securities. Expanding its reach far and wide, KMAMC operates in 88 cities and boasts an extensive network of 95 branches as of 31st March 2023.
Kotak Nifty Financial Services Ex-Bank Index Fund – NFO Detail
| Type of Offer | NFO (New Fund Offer) |
| Fund House | Kotak Mahindra Mutual Fund |
| Name of the Fund | Kotak Nifty Financial Services Ex-Bank Index Fund |
| Type of Scheme | Open-ended |
| Category of Scheme | Index Fund |
| NFO Starts | 24-July-2023 |
| NFO Ends | 07-August-2023 |
| NFO Unit Price | Rs 10 per unit |
| Minimum Investment | Rs. 5000 |
| Plans | Regular, Direct |
| Options | Growth, IDCW |
| Entry Load | Not Applicable |
| Exit Load | Nil |
| Investment Manager | Kotak Mahindra Asset Management Company Limited |
| Fund Manager | Mr. Devender Singhal, Mr. Satish Dondapati and Mr. Abhishek Bisen |
Kotak Nifty Financial Services Ex-Bank Index Fund NFO – Scheme Objective
The Investment objective of the Scheme is to replicate the composition of the Nifty Financial Services Ex-Bank Index and to generate returns that are commensurate with the performance of the Nifty Financial Services Ex-Bank Index, subject to tracking errors.
Kotak Nifty Financial Services Ex-Bank Index Fund NFO – Who Can Invest?
This product is suitable for investors who are seeking*:
- Long term capital appreciation.
- Investment in stocks comprising the underlying index and endeavors to track the benchmark index.
How Will the Scheme Allocate Its Asset
- 95-100% in Equity and Equity related securities covered by the Nifty Financial Services Ex-Bank Index.
- 0-5% in Debt & Money Market Instruments.
Where Will the Scheme Invest?
The Scheme shall invest in the following securities as per the limits specified in the asset allocation table of Scheme, subject to SEBI (MF) Regulations.
- The net assets of the Scheme will be invested in stocks constituting the Nifty Financial Services Ex-Bank Index and / or its exchange traded derivatives. This would be done by investing in almost all the stocks comprising the Nifty Financial Services Ex-Bank Index in approximately the same weightage that they represent in the Nifty Financial Services ExBank Index and / or investing in derivatives including futures contracts and options contracts on the Index.
- The Scheme may take derivatives or index derivatives positions subject to the guidelines issued by SEBI from time to time and in line with the overall investment objective of the Scheme.
- Equity and equity related securities including convertible bonds and debentures and warrants carrying the right to obtain equity shares.
- Securities created and issued by the Central and State Governments and/or repos/reverse repos in such Government Securities as may be permitted by RBI (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills).
- Debt obligations of domestic Government agencies and statutory bodies, which may or may not carry a Central/State Government guarantee (including but not limited to Indian Government Bond, State Development Loans issued and serviced at the Public Debt Office, Bonds issued by Central & State Government PSUs which are guaranteed by Central or State Governments)
- Corporate debt (of both public and private sector undertakings) including Non-convertible debentures (including bonds) and non-convertible part of convertible securities having residual maturity of upto 91 days.
- Units of Mutual Fund Schemes;
- Reverse repos in such Government Securities as may be permitted by RBI;
- Short Term Deposits of banks (both public and private sector) and development financial institutions to the extent permissible under SEBI Regulations;
- Money market instruments permitted by SEBI/RBI, having maturities of up to one year but not limited to:
- Certificate of Deposits (CDs).
- Commercial Paper (CPs)
- Triparty repo on Government securities or treasury bills, Bills rediscounting*, as may be permitted by SEBI from time to time.
- Securities Lending as permitted by SEBI from time to time.
Kotak Nifty Financial Services Ex-Bank Index Fund NFO – SID (Scheme Information Document)
Please click here to read the SID (Scheme Information Document) of this NFO scheme.
How to Invest?
Visit this page on the AMC website for further detail and investment.
Disclaimer: This post is just information about the scheme. It does not give any advice or recommendation. Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing.
