Kotak Mahindra Mutual Fund launches Kotak Nifty Midcap 50 Index Fund; details inside
28 Aug, 02:45 AM (GMT+5:30)
2 Min
Summary
Kotak Mahindra Mutual Fund introduced the Kotak Nifty Midcap 50 Index Fund on July 25, 2024. This open-ended index fund seeks to mirror the performance of the Nifty Midcap 50 Index, providing returns aligned with the index. The minimum investment is ₹100, with the NFO closing on August 8, 2024.
Kotak Mahindra Mutual Fund has launched an open-ended index fund, Kotak Nifty Midcap 50 Index Fund, on July 25, 2024. The fund aims to replicate the Nifty Midcap 50 Index, providing returns matching the index, excluding expenses. It is categorised as an Other Scheme - Index Fund with a minimum investment of ₹100. The New Fund Offer (NFO) closes on August 8, 2024.
Source - Management Commentary on Index Fund Launch
Nilesh Shah, Managing Director of Kotak Mahindra AMC, said, “At Kotak Mutual Fund, we continually strive to provide our investors with diverse investment solutions. The launch of the Kotak Nifty Midcap 50 Index Fund aligns with our commitment to offering active and passive products that cater to different risk appetites and investment horizons. While Midcap 50 Index presents a mixed landscape with varying opportunities across sectors, this index fund allows investors to gain focused exposure to a select group of top midcap companies within Nifty Midcap 150 Index. This index fund facilitates investors to capitalise on the potential of the midcap segment. However, it is important to be cognizant of proper asset allocation of your investments before investing.” Devender Singhal, Executive Vice President & Fund Manager, Kotak Mahindra AMC was of the view that, “The Kotak Nifty Midcap 50 Index Fund is an addition to our passive product line-up, catering to investors’ interest in India’s Midcap space. Midcaps play a crucial role in key sectors of our economy, from Capital Goods and finance to healthcare and information technology. While individual Midcap stocks may exhibit varying performance, this index-based approach allows investors to potentially benefit from the overall growth and innovation potential of the mid-sized companies.”Kotak Nifty Midcap 50 Index Fund
The investment objective of the Kotak Nifty Midcap 50 Index Fund is to provide returns that, before expenses, correspond to the total returns of the securities as represented by the underlying index, subject to tracking errors.Who should invest in this fund?
This NFO of Kotak Nifty Midcap 50 Index Fund is suitable for investors who are seeking long-term capital appreciation and return that corresponds to the performance of NIFTY Midcap 50 Index, subject to tracking error.Benchmark
The performance of the Kotak Nifty Midcap 50 Index will be benchmarked to the performance of the Nifty Midcap 50 Index (Total Return Index).
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SEBI permits passive funds to invest in listed securities of sponsor's group companies beyond 25 pc
- 28 Aug, 02:46 AM (GMT+5:30)
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Summary
Securities and Exchange Board of India (Sebi) has amended mutual fund rules, whereby equity-oriented ETFs and index funds can now invest in the listed securities of group companies of the sponsor beyond 25% of the net assets.
Markets regulator Sebi has streamlined norms for passive funds – index funds and Exchange Traded Funds (ETFs) – on exposure to securities of group companies of the sponsor to facilitate a level playing field for mutual funds.
In a notification on Tuesday, the Securities and Exchange Board of India (Sebi) has amended mutual fund rules, whereby equity-oriented ETFs and index funds can now invest in the listed securities of group companies of the sponsor beyond 25% of the net assets.
Earlier, mutual fund schemes were not allowed to invest more than 25% of their net asset value (NAV) in group companies of the sponsor.
This has restricted passive funds from effectively replicating the underlying index, in cases where group companies of sponsors comprise more than 25% of the index.
This has put such asset management companies (AMCs) at a relative disadvantage compared to other AMCs who may not have a sponsor group company comprising over 25% in the underlying index.
To streamline the norm and create a level playing field for all AMCs, Sebi's board in April approved the amendment to mutual fund rules to allow equity passive schemes to take exposure up to the weightage of the constituents in the underlying index.
This exposure would, however, be subject to an overall cap of 35% investment in the group companies of the sponsor, Sebi had stated.
Source - Take your investment to next level
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HDFC Asset Management puts restrictions on lumpsum and systematic transactions for HDFC defence fund
- 28 Aug, 02:45 AM (GMT+5:30)
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Effective July 22, 2024, HDFC Asset Management has announced the ceasing of lumpsum subscriptions and restriction on systematic transactions for HDFC Defence Fund. But other things will continue as usual for all ongoing systematic transactions (SIPs).
HDFC Asset Management said that referring to the addendum dated June 6, 2023, on discontinuation of lumpsum subscriptions and restrictions on Systematic Transactions in HDFC Defence Fund. Regarding the same, the following has been decided in the Scheme with effect from July 22, 2024, i.e. the effective date:
Source - - New SIP Registrations: Requests for new Systematic Investment Plan (SIP) registrations in the HDFC Defence Fund will not be accepted from July 22, 2024.
- Lumpsum Investments and Switch-ins: Fresh lumpsum investments, including switch-ins, and new systematic transfer registrations into the HDFC Defence Fund will remain restricted.
- Existing SIPs: SIPs registered before July 22, 2024, will continue to be processed without any changes.
- Ongoing Systematic Transactions: All systematic transactions already registered will continue to be processed as usual.
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ICICI Prudential Mutual Fund launches India’s first ever Oil & Gas ETF
- 28 Aug, 02:44 AM (GMT+5:30)
- 2 Min
Summary
The ICICI Prudential Mutual Fund unveiled the first Nifty Oil & Gas ETF in India on July 8, 2024. It tracks the Nifty Oil & Gas TRI index that gives diversified oil and gas sector exposure to investors with a minimum investment of ₹100 and its New fund offer (NFO) will close on July 18, 2024.
ICICI Prudential Nifty Oil & Gas ETF is an open-ended exchange-traded fund (ETF) launched by ICICI Prudential Mutual Fund on July 8, 2024. The objective of the scheme is to track the performance of the Nifty Oil & Gas TRI, an index that reflects the performance of companies in the oil and gas sector.
The minimum investment amount is ₹100 and there is no exit load for units sold on the secondary market. However, investors will be responsible for any brokerage charges incurred during the sale. The new fund offer (NFO) closes on July 18, 2024.
The Nifty Oil & Gas Index features 15 companies from the oil, gas and petroleum industry. These companies are chosen from the Nifty 500 based on their market value which is freely available for trading. The selection ensures that no single company has more than 33% weight, and the top three companies together do not exceed 62% of the index. This approach ensures a well-balanced and diversified exposure to the sector.
Speaking on the launch of the product, Chintan Haria, Principal - Investment Strategy at ICICI Prudential AMC, said, "ICICI Prudential Nifty Oil & Gas ETF is designed to provide investors with access to a sector that is pivotal to the economy and is currently undervalued. The oil and gas sector is the driving force of modern economic growth, and with growing demand and consumption, it presents a significant investment opportunity. Our ETF aims to allow investors to capitalise on the resurgence in global interest in this sector."
Source - Performance of the Index: Calendar Year Returns (%)
Nifty Oil & Gas TRI has Outperformed the Nifty 500 TRI six times in the last 10 years. On a YTD basis (as of June 20, 2024) also the index has been outperforming the Nifty 500 TRI. The Nifty Oil & Gas Index is updated twice a year to reflect the sector's performance accurately and has outperformed broader market indices in many years, as shown in the above graph, demonstrating its potential for delivering superior returns.ICICI Prudential Nifty Oil & Gas ETF
The performance of the scheme will be benchmarked against Nifty Oil & Gas TRI. Since the scheme is an ETF scheme, the composition of the benchmark is such that it is most suited for comparing the performance of the scheme.Take your investment to next level
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