The new fund offer or NFO of the scheme is open for subscription and will close on 16th September. The scheme will reopen on or before 30th September.
The investment objective of the plan is to provide returns that, before expenses, correspond to the total returns of the securities represented by the underlying index, subject to tracking errors.
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The scheme is based on the Nifty India Tourism Index (TRI) and will be managed by Devendra SinghalSatish Dondapati, and Abhishek Bisen.
The minimum amount for global investment and SIP is Rs 100 and any amount above that. The scheme will offer regular and direct plans, both with growth and IDCW options.
The scheme will allocate 95-100% in equity and equity-related securities covered by the Nifty India Tourism Index and 0-5% in debt/money market instruments.
In order to achieve the investment objective, the scheme will follow a passive investment strategy with investments in equities in equal proportion as in the Nifty India Tourism Index. The investment strategy would focus on reducing tracking error by rebalancing the portfolio, taking into account the change in weightings of equities in the index as well as incremental collections/redemptions from the scheme.
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“At Kotak Mutual Fund, our aim is to offer investment solutions that align with India’s dynamic economic sectors. The Kotak Nifty India Tourism Index Fund opens the door for investors to participate in the burgeoning tourism sector, driven by evolving travel trends and infrastructure expansion. This fund offers an opportunity to benefit from the growth potential of India’s tourism industry,” said Nilesh Shah, Managing Director, Kotak Mahindra AMC.
“India’s tourism sector is emerging as a significant economic force, with contributions from multiple industries such as airlines, hospitality and transportation. The Kotak Nifty India Tourism Index Fund is designed to offer investors exposure to this broader growth ecosystem within the tourism sector. Through this index-based approach, we offer an accessible and relatively cost-effective way for investors to participate in the long-term growth of the tourism sector,” said Devender Singhal, Executive Vice President and Fund Manager, Kotak Mahindra AMC.
The scheme is suitable for investors seeking long-term capital growth and returns in line with the performance of the Nifty India Tourism Index subject to tracking errors. The capital invested in the scheme will be at “very high” risk as per the risk meter of the scheme.
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