NFO Alert: Kotak Mahindra Mutual Fund Launches Nifty Chemicals ETF

Kotak Mahindra Mutual Fund has filed an offer document with SEBI to launch a new open-ended exchange-traded fund (ETF) called the Kotak Nifty Chemicals ETF. The New Fund Offer (NFO) price is fixed at ₹10 per unit. The fund will not charge any entry or exit load. It aims to collect a minimum target amount of ₹5 crore during the offer period.

Offer Details

The NFO will open for subscription on October 23, 2025, and close on November 6, 2025. The minimum application amount is ₹5,000, and investors can invest in multiples thereafter. The scheme does not offer different plans or options under the same fund.

Investment Objective

The main objective of the Kotak Nifty Chemicals ETF is to replicate the composition of the Nifty Chemicals Index and generate returns similar to the index’s performance, subject to tracking errors. The fund document states that there is no assurance of achieving this objective.

Benchmark and Management

The performance of the scheme will be measured against the Nifty Chemicals Index – Total Return Index (TRI). The fund will be managed by Mr Devender Singhal, Mr Satish Dondapati, and Mr Abhishek Bisen. These fund managers are responsible for maintaining the portfolio in line with the benchmark index.

About the Nifty Chemicals Index

The Nifty Chemicals Index includes listed companies from the chemical sector across categories such as speciality chemicals, industrial chemicals, and fertilisers. The index represents the overall performance of India’s chemical industry, which has seen increased focus due to its role in manufacturing and exports.

Other Information

The ETF will be traded on the stock exchange after listing, allowing investors to buy and sell units in real time. The scheme’s expenses, risks, and tracking methodology will follow SEBI’s guidelines for ETFs.

Read More: NFO Alert: Zerodha Mutual Fund Launches BSE SENSEX Index Fund

Conclusion

Kotak Nifty Chemicals ETF is designed as a passive investment vehicle linked to the Nifty Chemicals Index. The fund’s structure, benchmark, and offer details are outlined in its SEBI filing.

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.