Kotak Mahindra Mutual Fund Files for Kotak Nifty Infrastructure Index Fund

Kotak Mahindra Mutual Fund has filed the scheme information document for the Kotak Nifty Infrastructure Index Fund. The scheme is classified as an equity index fund and will follow the Nifty Infrastructure Index.  

Its stated objective is to replicate the composition of the index through investments in equity and equity-related securities, subject to tracking error.  

The Nifty Infrastructure Index includes companies from sectors such as telecom, power, ports, airports, roads, railways, shipping and utility services. The scheme will use the Nifty Infrastructure Index Total Return Index (TRI) as its benchmark.  

Asset Allocation 

Under normal circumstances, 95% to 100% of the scheme’s assets will be invested in equity and equity-related securities forming part of the index. The remaining 0% to 5% may be invested in debt and money market instruments. 

The fund may also take limited exposure to equity derivatives of index constituents or the underlying index when required for rebalancing, corporate actions or temporary unavailability of securities. Non-hedging derivative exposure can be up to 20% of equity and equity-related securities. 

Investment Terms 

The minimum investment during the New Fund Offer (NFO) is ₹1,000, with further investments allowed in any amount thereafter. For SIPs, the minimum investment is ₹500, subject to at least two instalments. 

Initial non-SIP investments and switch-ins require ₹1,000. The minimum additional purchase amount is also ₹1,000. Investors can redeem or switch out a minimum of ₹500, while the minimum redemption can be the account balance if it is lower. 

Charges and Fund Management 

The scheme will have no entry or exit load. Kotak has estimated a maximum base expense ratio of up to 0.90% of the scheme’s daily net assets. Brokerage costs, transaction costs, and statutory levies may apply separately. 

Satish Dondapati and Jeetu Valechha Sonar are the designated fund managers, while Abhishek Bisen will manage the debt portion. The scheme will aim to limit tracking error to 2%, with portfolio changes generally rebalanced within seven calendar days.  

Read More: Upcoming NFOs: Three Passive Funds Open for Subscription This Week! 

Conclusion 

The fund will follow the Nifty Infrastructure Index through a predominantly equity-based portfolio. Its performance will depend on how closely the scheme tracks the underlying index, while returns will remain subject to market movements. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.