All You Need to Know About Kotak Nifty India Tourism Index Fund

Kotak Mahindra Mutual Fund has recently launched an open-ended scheme replicating/tracking the Nifty India Tourism Index, named Kotak Nifty India Tourism Index Fund. The new fund offer (NFO) opened on September 02, 2024, and will close on September 16, 2024. The performance of Kotak Nifty India Tourism Index Fund is measured against Nifty India Tourism Index (Total Return Index)

What are the Investment Strategies?

To achieve the investment objective, the scheme will follow a passive investment strategy with investments in stocks in the same proportion as in the Nifty India Tourism Index. The investment strategy would revolve around reducing the tracking error through rebalancing the portfolio, taking into account the change in weights of stocks in the index as well as the incremental collections/redemptions from the Scheme.

Index Scheme, a passive investment, carries less risk than active fund management. The portfolio follows the index, and therefore, the level of stock concentration in the portfolio and its volatility would be the same as that of the index, subject to tracking error. Thus, there is no additional element of volatility or stock concentration on account of fund manager decisions.

Scheme Suitable For Investors

Kotak Nifty India Tourism Index Fund scheme is suitable for investors who are seeking

• Long-term capital growth
• Return that corresponds to the performance of the Nifty India Tourism Index subject to tracking error

Ready to watch your savings grow? Try our SIP Plan Calculator today and unlock the potential of disciplined investing. Perfect for planning your financial future. Start now!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.