Kotak Mahindra Asset Management Company will launch India’s first Nifty Alpha 50 ETF, Kotak Nifty Alpha 50 ETF, which will track the Nifty Alpha 50 index. This open-ended fund will provide an opportunity to invest in a diversified portfolio of stocks with high alpha.
It can also be used as a tool to balance an active portfolio of investors. Alpha, also known as ‘excess return’, is a term that measures the return earned by a stock above or below demand by the market for its risk class, a release said.
Here are 5 things to know about the fund:
- Kotak’s Nifty Alpha 50 ETF will track the performance of 50 stocks listed on NSE with high alpha over the past one year.
- As per the criteria, these companies have been selected from among the top 300 companies on the basis of average free-float market capitalization and average daily turnover for the past six months.
- Why invest in Kotak Nifty Alpha 50 ETF? easy to understand; Lower cost than actively managed funds; Significant Alpha on Nifty 50 and Nifty 100; There is no bias as it tracks an index; Suitable for investors seeking long term capital growth.
- The new fund is open for subscription from December 1, 2021 to December 15, 2021.
Nilesh Shah, Group Chairman and Managing Director, Kotak Mahindra Asset Management Company Ltd., said, “Our decision to launch Kotak Nifty Alpha 50 ETF comes at a time when the market has cooled down and valuations have dipped. The diversified stocks in the ETF Kotak’s well-defined strategy, which will benefit investors in the long run.
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