Kotak Mahindra Asset Management Introduces Kotak BSE PSU Index Fund

Kotak Mahindra Asset Management Company Ltd., (KMAMC) has announced the launch of the Kotak BSE PSU Index Fund, an open-ended scheme that tracks the BSE PSU Index. The subscription for the scheme opens on July 10, 2024 and closes on July 24, 2024.

The BSE PSU Index now comprises 56 PSU equities chosen from the BSE 500 Index and spanning several industries. As per the company's press release, the fund provides investors with a low-cost and transparent way to engage in the Indian stock market, giving them broad exposure to public-sector companies.

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Nilesh Shah, Managing Director of Kotak Mahindra Asset Management, stated "Kotak Mutual Fund gives varied investment solutions to different risk appetites and investment goals." The Kotak BSE PSU Index Fund reflects this by providing investors with a systematic strategy to passively participate in the growth of PSU enterprises while reducing risk via diversification, the release added.

Devender Singhal, Executive Vice President and Fund Manager at Kotak Mahindra AMC emphasized the fund's strategic relevance, pointing out that public sector firms are crucial in areas such as energy, finance, military, and infrastructure. This indexing technique enables investors to profit from public sector development and reforms, giving a low-cost and well-managed investment opportunity.

Kotak Mahindra Asset Management Company Limited, a subsidiary of Kotak Mahindra Bank Ltd, manages Kotak Mahindra Mutual Fund. Established in December 1998, KMAMC oversees approximately 58.83 lakh investor folios across its different schemes as of March 31, 2024. As per the release, KMF offers programs tailored to investors with varied risk-return profiles, and it was the first in India to create a dedicated gilt program centred on government assets. As of March 31, 2024, the corporation has 94 cities and 101 branches.