New Fund offer of Kotak Midcap 50 ETF opens

Kotak Mahindra Mutual Fund has launched the new fund offer of an Exchange Traded Fund – Kotak Midcap 50 ETF. The fund will track the Nifty Midcap 50 Index. Over last one year the fund house has launched index funds and ETF tracking indices such as Nifty Alpha 50, Nifty 50, Nifty Next50, Nifty IT and Nasdaq 100.

As per the fund house since 2004, in 11 out of 18 years, the Nifty Midcap 50 Index has performed better than both Nifty 50 and Nifty 500. The index offers exposure to mid cap stocks. The Kotak Midcap 50 ETF will replicate the Nifty Midcap 50 Index, which includes the top 50 companies based on full market capitalisation from Nifty Midcap 150 Index with preference given to those stocks on which derivative contracts are available on the National Stock Exchange. In case 50 midcap stocks do not have derivatives contract available on them then it could have less than 50 stocks in the index.

Nilesh Shah, Group President and Managing Director, Kotak Mahindra Asset Management said, “The scheme is a good choice for investors looking to complement or diversify their active fund investments through passive funds. With the economy on the mend over the past one year, many midcap firms have improved their performance during this period and are expected to deliver better returns going ahead, which would augur well for investors in the medium to long term. Further, with valuations of the underlying index having eased over the last few months following the recent bouts of correction in the broader market, this is an opportune time to invest in the Kotak Midcap 50 ETF.”

The NFO closes on January 20, 2022. Investors can invest a minimum amount of Rs 5,000 during the NFO.