Kotak Mahindra Asset Management Company Ltd. (Kotak Mutual Fund) has launched the Kotak Nifty Midcap 50 Index Fund. This open-ended investment program seeks to follow the Nifty Midcap 50 Index.
NFO Details
The Kotak Nifty Midcap 50 Index Fund provides investors with exposure to the top 50 midcap stocks from the Nifty Midcap 150 Index. The new fund offer (NFO) will be available for subscription from July 25, 2024, to August 8, 2024. Investors can subscribe with a minimum investment of Rs 100 with subsequent investments in multiples of Re 1.
Scheme Allocation
The fund is designed to offer focused exposure to leading midcap companies, selected based on their market capitalization and tradability in NSE's Future & Options segment. The Nifty Midcap 50 Index is a diverse representation of the midcap market providing a low-cost and transparent approach to gain access to well-known midcap stocks.
Nilesh Shah, Managing Director of Kotak Mahindra AMC, stated, that At Kotak Mutual Fund, we continually strive to provide our investors with a range of diverse investment solutions. The launch of the Kotak Nifty Midcap 50 Index Fund is consistent with our commitment to providing both active and passive solutions to suit a variety of risk appetites and investment horizons. This index fund offers investors targeted exposure to a chosen set of top midcap businesses from the Nifty Midcap 150 Index. Its goal is to assist investors profit from the midcap segment's growth potential. As it is important to be cognizant of proper asset allocation of your investments before investing.
Devender Singhal, Executive Vice President & Fund Manager at Kotak Mahindra AMC, said that The Kotak Nifty Midcap 50 Index Fund enhances our range of passive investment products responding to the growing interest in midcap stocks. Midcaps are vital across various sectors, including Capital Goods, Finance, Healthcare and Information Technology. Although individual midcap stocks can vary in performance, this index-based fund provides a way to gain from the overall growth and innovation potential of mid-sized companies.
Who Should Invest?
Kotak Mutual Fund offers this scheme for investors looking for exposure to midcap companies with growth potential as well as to diversify their midcap assets. It is appropriate for investors seeking capital appreciation using an index-based strategy that reflects the performance of the Nifty Midcap 50 Index.
