Kotak Nifty Midcap 150 ETF Files Papers with SEBI

Introduction

Kotak Mahindra Asset Management Company has filed papers with SEBI for the launch of Kotak Nifty Midcap 150 ETF, a new fund that aims to replicate the Nifty Midcap 150 Index. This exchange-traded fund (ETF) seeks to generate returns by tracking the performance of mid-market capitalization companies. Below, we cover the fund’s key details, objectives, and structure.

Fund Name

The fund is named Kotak Nifty Midcap 150 ETF and will track the Nifty Midcap 150 Index.

Objective of the Fund

The primary objective of the Kotak Nifty Midcap 150 ETF is to replicate the composition of the Nifty Midcap 150 Index and generate returns that are in line with the performance of the index, subject to tracking errors. The fund will focus on investing in midcap companies ranked between 101-250 in terms of market capitalization, offering long-term capital appreciation.

Category

This ETF falls under the Other – ETFs category and is open-ended, meaning investors can purchase and redeem units on an ongoing basis.

Fund Manager

The fund will be managed by Mr. Devender Singhal and Mr. Satish Dondapati, who both have significant experience managing equity and ETF portfolios. Additionally, Mr. Abhishek Bisen will manage the debt portion of the fund.

Asset Allocation

The Kotak Nifty Midcap 150 ETF will allocate between 95% to 100% of its assets to equity and equity-related securities covered by the Nifty Midcap 150 Index. A smaller portion (up to 5%) may be invested in debt and money market instruments for liquidity purposes.

Benchmark Index

The fund’s performance will be measured against the Nifty Midcap 150 Index (Total Return Index or TRI). This index tracks mid-market capitalization companies and provides a comprehensive overview of the midcap sector’s performance.

Liquidity and Listing

The fund will offer liquidity on the stock exchange, where units can be traded like any other publicly listed security. It will also have a provision for large investors and market makers to buy directly from the mutual fund in creation unit sizes.

Key Details

• NAV Disclosure: The NAV will be disclosed on the AMC’s website by 11 PM on every business day.
• Exit Load: The fund will not charge an exit load on redemptions.
• Minimum Purchase: Ongoing purchases are limited to market makers and large investors (above Rs 25 crores), while smaller transactions can occur via the secondary market.

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.