Investment Objective
Kotak Nifty 50 Index Fund seeks to replicate the composition of the Nifty 50 and generate returns similar to the performance of the NIFTY 50 Index, subject to tracking errors.
Investment Strategy
- The fund follows a passive investment approach to replicate the composition of the Nifty 50 Index.
- It seeks to minimise tracking error to the lowest possible level by regularly rebalancing the portfolio after taking into account the changes in the weights of stocks within its benchmark index and its incremental collections and redemptions requests.
- The fund may invest a small portion of its net assets in debt and money market instruments including TREPS to meet the liquidity requirements.
Who Should Invest
- Investors having investment horizons of 5 years and above and seeking long term capital appreciation.
- Those seeking a portfolio of stocks constituting the Nifty 50 index with similar returns.