Kotak BSE PSU Index Fund NFO: Review, Opening Date & NAV

Introduction

If you’re already a key player or new to the world of NFOs, you've come to the correct spot to learn about the latest trends, insights, and news influencing this dynamic market. We are today at Kotak BSE PSU Index Fund-NFO Blog committed to giving you insightful knowledge, Financial attributes, past performance if any, etc. on this NFO. 

 

Everything You Need To Know About Kotak BSE PSU Index Fund NFO

The Kotak BSE PSU Index Fund NFO under the house Kotak Mahindra Mutual Fund is an open-ended scheme replicating/tracking the BSE PSU Index. The lowest investment required to join is Rs.100 for investors. The Scheme’s investments will mostly be made in Equity and Equity related securities covered by the BSE PSU Index & Debt and Money Market Instruments. The Scheme has no Exit Load.

To learn about the Fund's asset allocation, and other financial characteristics that influence decision-making, carefully read this blog.

 

 

Kotak BSE PSU Index Fund - NFO Overview

The investment period for the Scheme is set for July 10, 2024, to July 24, 2024 with having offer for Units of Rs.10 for cash and a continuous offer for Units at NAV-based prices. The scheme will reopen on or before August 6, 2024, for continuous sales and re-purchase. The Scheme is a very high-risk Scheme. There is no assurance that the Scheme's investment goal will be met. The Scheme will allocate 95-100% of its investment capital to investing in Equity and Equity related securities covered by the BSE PSU Index and the remaining 0-5% portion will be allocated to Debt and Money Market Instruments. Since this Scheme is new hence no past performance record is available. 

 

Fund Overview

Start Date	10 July 2024
End Date	24 July 2024 (The Scheme will re-open for subscription on or before 6 August 2024).
Allotment Date / Subscription Date	Not more than 5 Business days after the closure date of the NFO.
VRO Rating	-
Expense Ratio	NA
Exit Load	NA.
Fund Size	NA
Lock-In	NA
Stamp Duty	0.005% (From July 1st 2020)
Benchmark	BSE PSU Index (Total Return Index)
Min. Investment	Rs.100
Risk	Very High
Short-Term Capital Gains (STCG)	Returns taxed at 15% if you redeem before 1 year
Long-Term Capital Gains (LTCG)	After 1 year, pay a LTCG tax of 10% on returns of Rs.1 lakh+ in a financial year

 

 

How To Invest In The NFO After The Closure Date?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then generally after 5 business days after the closure date of the NFO; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based prices by logging on to your Demat account and search for “Kotak BSE PSU Index Fund- NFO” on BSE PSU Index (Total Return Index).

To open your Demat account, Click Here.

 

The Objective Of The Fund

The Scheme intends to deliver returns that, subject to tracking mistakes, roughly match the overall returns of the securities represented by the underlying index before expenditures. Nevertheless, there can be no promise or guarantee that the Scheme's investment goal will be met.

Asset allocation (% of Net Assets) Of The Scheme's Portfolio Will Be As Follows:

Types of Instruments	Min Allocation (% of Net Assets)	Max Allocation (% of Net Assets)
Equity and Equity related securities covered by the BSE PSU Index	95	100
Debt and Money Market Instruments	0	5

 

 

Peers Of Kotak BSE PSU Index Fund

Multi Cap Funds	1Y Return	AUM (Cr)
Aditya Birla Sun Life PSU Equity Fund-Direct Plan	93.08%	4711
CPSE ETF	121.37%	42,632
ICICI Prudential PSU Equity Fund-Direct Plan	85.29%	2589
Invesco India PSU Equity Fund-Direct Plan	99.38%	1363
SBI PSU Fund-Direct Plan	98.59%	3695

 

Risk Factors In This Scheme

• The value of the equities that make up the benchmark index is strongly correlated with the NAV of the units. The value of this will fluctuate in response to changes in the stock market, which could alter the NAV of the scheme's units. The scheme's NAV may also fluctuate over extended periods during market downturns, in response to changes in interest rates, macroeconomic and political developments, and other factors.

• The scheme's performance may be impacted by tracking inaccuracy. Nonetheless, KMAMC will make an effort to reduce tracking errors by routinely rebalancing the portfolio.

• The program offers exposure to the benchmark and performance tracking. It is a passively managed scheme. A broad drop in stock market prices may impact the performance of the Schemes. Regardless of the stocks' potential for profit, the Scheme invests in the stocks that make up the index.

• As the Scheme proposes to invest not less than 95% of the net assets in securities comprising of the BSE PSU Index, any deletion of stocks from or addition to in BSE PSU Index may require sudden and immediate liquidation or acquisition of such stocks at the prevailing market prices irrespective of whether valuation of stocks is attractive enough. This may not always be in the interest of unitholders.

• The performance of the BSE PSU Index will have a direct bearing on the performance of the scheme. Hence, any composition change under weightage or stock selection will have an impact on the Scheme.

 

Past Performance Of Index Funds

Index / Debt Funds	NAV (Rs)	Annualized Return (1Y)	Return/Risk
Navi Nifty Bank Index Fund - Direct Plan-Growth	13.48	18.86%	Very High Risk
Motilal Oswal S&P 500 Index Fund - Direct Plan-Growth	20.911	27.92%	Very High Risk
Invesco India Nifty G-Sec Sep 2032 Index Fund - Direct Plan-Growth	1107.65	7.58%	Moderate Risk

 

 

Kotak BSE PSU Index Fund NFO-Who Can Invest?

This Fund is ideal for you if you are looking for long-term wealth generation and return based on the BSE PSU Index performance, subject to tracking inaccuracy.

 

Kotak BSE PSU Index Fund NFO - Growth Fund Managers

• Mr. Abhishek Bisen 

• Mr. Devender Singhal

• Mr. Satish Dondapati
  
  

Conclusion

The Scheme comes under a very high-risk category and has no previous performance track record. It plans to invest in Equities and Equity-related instruments and strategically allocate assets across different sectors and stocks at different points in the economy's business cycle. There is no guarantee that the goals of this Scheme will be achieved. Research well according to your objectives, and the time horizon of your investment. 

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.