Kotak Mahindra Mutual Fund (MF) has launched Kotak Nifty 100 Low Volume 30 ETF, an open-ended scheme that mimics/tracks the Nifty 100 Low Volatility 30 Index. Open for NFO subscription on March 15, 2022 and close on March 22, 2022.
About the Index As per the information on NSE Indices, the objective of the Nifty 100 Low Volatility 30 Index is to measure the performance of less volatile securities in the larger market capitalization segment. The securities are handpicked from the Nifty 100 Index and should be available for trading in the Derivatives segment (F&O). The selection and weighting of securities in Nifty 100 Low Volatility 30 is based on volatility. The volatility of securities is calculated as the standard deviation of the daily price return for the past one year.
In order to make the index repeatable for passive products, the weightage of stocks with lowest turnover in Nifty 50 has been capped at 3%, according to NSE.
The top constituents of the index as on February 28, 2022 are Dabur India, Britannia Industries, Nestle India, Hindustan Unilever, Tata Consultancy Services, Bajaj Auto, Hero MotoCorp, Marico, Infosys and Cipla.
The entry load and exit load for the scheme is zero. Minimum investment amount is 5,000 and in multiples of 1 after that.
The scheme’s performance is benchmarked against Nifty 100 Low Volatility 30 Index (Total Return Index) and its fund managers are Devendra Singhal, Satish Dondapati and Abhishek Bisen.
The investment objective of the scheme is to replicate the structure of Nifty 100 Low Volatility 30 Index and generate returns commensurate with the performance of Nifty 100 Low Volatility 30 Index subject to tracking errors.
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