Kotak Nifty Midcap 50 Index Fund NFO: Review, Date & NAV

Kotak Nifty Midcap 50 Index Fund - NFO Complete Overview

The Kotak Nifty Midcap 50 Index Fund by Kotak Mahindra Mutual Fund (Fund House) under its AMC Kotak Mahindra Asset Management Company Ltd having an AUM of Rs.444,792.28 crore as of 30 June 2024 is an open-ended scheme that tracks and replicates the NIFTY Midcap 50 Index that was introduced on July 25, 2024. The Scheme seeks to give returns that, subject to tracking mistakes, correspond to the total returns of the securities as represented by the underlying index before expenditures. The investment window is open from July 25 to August 08, 2024, with a starting price of Rs.100 and any amount thereafter.

The scheme will invest 95-100% of its units in equity and equity-related securities covered by the NIFTY Midcap 50 Index and 0-5% in debt and money market instruments. The scheme is suitable for investors who want to achieve capital appreciation over time and Return that, subject to tracking error, reflects the NIFTY Midcap 50 Index's performance. The scheme is a very high-risk scheme. There is no assurance that the scheme's investment goal will be met. 

Click Here To Stay Updated With The Latest NFOs.

 

 

Fund Overview

The Kotak Nifty Midcap 50 Index Fund-NFO has set the minimum subscription amount at Rs.100 and any amount thereafter with the stamp duty of 0.005% (From July 1st, 2020).

Start Date	25 July 2024
End Date	08 August 2024
Allotment Date / Subscription Date	Within 5 business days after the end date of the NFO.
VRO Rating	-
Expense Ratio	Nil
Exit Load	NA
AUM	Rs.444,792.28 crore
Lock-In	No Lockin
Stamp Duty	0.005% (From July 1st 2020)
Benchmark	Nifty Midcap 50 Index (Total Return Index)
Min. Investment	Rs.100
Risk	Very High
Short-Term Capital Gains (STCG)	For less than 2 years, as per the TAX Slab
Long-Term Capital Gains (LTCG)	For more than 2 years, 12.50% is applicable.

 

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 within 5 business days after the closure date of the NFO; you can participate directly in the Mutual Fund by spending at NAV based price; by logging on to your Demat Account or directly with the AMC and search for “Kotak Nifty Midcap 50 Index Fund” or simply touch the “Click Here” button below.

 

 

The Objective of The Fund

The Scheme seeks to provide returns that, subject to tracking mistakes, correspond to the total returns of the securities as represented by the underlying index before expenditures. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

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

Types of Instruments	Minimum Allocation (% of Net Assets)	Maximum Allocation (% of Net Assets)
Equity and equity-related securities covered by the NIFTY Midcap 50 Index	95	100
Debt And Money Market Instruments	0	5

Peers of Kotak Nifty Midcap 50 Index Fund 

Scheme	1Y Return (%)	AUM (Cr)
Tata Nifty Midcap 150 Momentum 50 Index Fund	65.78	406.14
SBI Nifty Midcap 150 Index Fund	52.93	516.42
Nippon India Nifty Midcap 150 Index	53.14	1,425.03
Navi Nifty Midcap 150 Index Fund	52.25	174.84

Since this scheme is a new scheme, hence no comparable data of its past performance with its peers is available.

 

Risk Factors In Such Funds

• An intrinsic feature of index funds is tracking mistakes, which can lead to schemes producing returns that deviate from the performance of the NIFTY Midcap 50 Index or any of the assets it includes. These errors can stem from a number of different sources.

• The scheme's performance may be impacted by tracking inaccuracy.

• The scheme aims to allocate a minimum of 95% of net assets to securities that comprise the NIFTY Midcap 50 Index. Therefore, any removal or addition of stocks to or from the index may necessitate an abrupt and prompt sale of those stocks at the going rate, regardless of whether the stock valuation is sufficiently attractive. Unitholders' interests might not always be served by this.

• The scheme's success will be directly impacted by the NIFTY Midcap 50 Index's performance. Therefore, the scheme will be affected by any changes in composition caused by changes in weightage or stock selection.

 

Past Performance of Index Funds

Index Funds	NAV (Rs.)	Annualised Returns (%)	Return / Risk
Bandhan Nifty 50 Index Fund Direct Plan-Growth	54.48	27.57	Very High
UTI Nifty 50 Index Fund Direct-Growth	171.20	27.51	Very High
SBI Nifty Index Direct Plan-Growth	227.82	27.52	Very High Risk

Kotak Nifty Midcap 50 Index Fund NFO-Who Can Invest?

This Fund is ideal for those who want to tolerate a high risk in their investment to achieve capital appreciation over a long time and Return that, subject to tracking error, reflects the NIFTY Midcap 50 Index's performance.

 

Kotak Nifty Midcap 50 Index Fund NFO-Growth Fund Managers

• Mr. Devender Singhal

• Mr. Satish Dondapati

• Mr. Abhishek Bisen
  
  

Conclusion

Investors looking to diversify their portfolios through investments to attain capital appreciation over and Return that, subject to tracking error, reflects the NIFTY Midcap 50 Index's performance. The scheme is a new one and no past performance data is available. Always assess your Financial Goals, Risk tolerance, time horizon, etc. before making an investment decision. 

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