NFO Alert: Kotak Mutual Fund Unveils Nifty Alpha Low-Volatility 30 Index Fund

Kotak Mutual Fund has rolled out its new open-ended scheme, the Kotak Nifty Alpha Low-Volatility 30 Index Fund.  

This fund seeks to offer investors structured equity exposure by tracking the Nifty Alpha Low-Volatility 30 Index. 

Core Features of Kotak's Latest Fund 

The Kotak Nifty Alpha Low-Volatility 30 Index Fund is designed to replicate or track the Nifty Alpha Low-Volatility 30 Index.  

The fund will remain open for subscription until June 12, upon which it will reopen for ongoing sale and repurchase on June 22.  

It aims for long-term capital growth by integrating Alpha, signifying potential market outperformance, and Low-Volatility, and denoting stable price movements. 

Index Composition and Strategy 

The Nifty Alpha Low-Volatility 30 Index consists of 30 selected companies, chosen based on their potential to strike a balance between return prospects and risk management.  

This rule-based index is periodically rebalanced to ensure optimal composition aligned with the desired investment strategy. 

Nilesh Shah on Investment Solutions 

Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, emphasised the fund's potential to serve investors with a long-term perspective, offering equity exposure through a transparent framework.  

The strategy identifies low-volatility stocks with high alpha potential, creating a balanced portfolio. 

Investment Parameters 

The fund allocates 95-100% of its assets to equities and related securities within the Nifty Alpha Low-Volatility 30 Index, with up to 5% in debt/money market instruments.  

The minimum investment required is ₹1,000, with a minimum SIP investment set at ₹500. 

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Fund Benchmark and Management 

The performance of this new fund will be benchmarked against the Nifty Alpha Low-Volatility 30 Index (Total Return Index (TRI)).  

A qualified team of fund managers, including Devender Singhal, Satish Dondapati, and Abhishek Bisen, will oversee it. 

Conclusion 

Kotak Mutual Fund's launch of the Nifty Alpha Low-Volatility 30 Index Fund highlights a structured investment offering tailored for stability and growth. The fund's unique combination of Alpha and Low-Volatility characteristics aims to provide an attractive avenue for investors seeking long-term return potential with moderated risk. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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 scheme-related documents carefully.