Kotak Nifty Smallcap 250 Index Fund: Key Highlights from the SEBI Draft Filing

Introduction

The Kotak Nifty Smallcap 250 Index Fund is an open-ended index fund that replicates the Nifty Smallcap 250 Index. This fund is suitable for long-term investors seeking growth aligned with the performance of small-cap companies in India. The goal is to provide returns corresponding to the Nifty Smallcap 250 Index, subject to tracking errors.

Key Features of Kotak Nifty Smallcap 250 Index Fund

1. Scheme Name:

Kotak Nifty Smallcap 250 Index Fund

2. Category:

Index Fund under the small-cap category.

3. Type of Scheme:

Open-ended scheme replicating/tracking the Nifty Smallcap 250 Index.

4. Investment Objective:

The scheme aims to replicate the performance of the Nifty Smallcap 250 Index before expenses, offering long-term capital growth. However, the returns are subject to tracking errors.

5. Fund Manager:

The fund is managed by experienced professionals including Mr. Devender Singhal and Mr. Satish Dondapati for equity and Mr. Abhishek Bisen for debt instruments.

6. Benchmark Index:

Nifty Smallcap 250 Index (Total Return Index or TRI). This index tracks the performance of small-cap companies ranked 251-500 based on full market capitalization within the Nifty 500 Index.

Asset Allocation

The fund follows a clear asset allocation strategy:

• Equity & Equity-related Securities: 95-100% of total assets in companies forming part of the Nifty Smallcap 250 Index.
• Debt & Money Market Instruments: Up to 5% for liquidity purposes, allowing flexibility and reducing the overall risk profile.

Additional Information

• Minimum Investment: Rs 100 during the NFO and for subsequent purchases.
• Exit Load: NIL, making it an attractive option for those looking for cost-effective investments.

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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.