NFO Period from 11 January to 19 January 2010
Kotak Mutual Fund has launched a new fund named as Kotak Nifty ETF, an
open ended exchange traded fund. The New Fund Offer (NFO) price for the
scheme is Rs 10 per unit. The new issue will be open for subscription
from 11 January 2010 and closes on 19 January 2010.
The investment objective of the scheme is to provide returns before
expenses that closely correspond to the total returns of the S&P
CNX Nifty subject, to tracking errors.
The scheme will invest in the stocks that comprise the S&P CNX Nifty and in the same proportion as in the index.
The scheme will allocate 90% to 100% of assets in stocks
comprising S&P CNX Nifty with medium to high risk profile. It will
allocate up-to 10% of assets in debt and money market instruments with
low risk profile.
The minimum investment amount during the New Fund Offer is Rs
10,000 and in multiples of Rs 1000. In case of investors opting to
switch into the Scheme from existing Schemes/Plan/Options of the Fund
during the NFO period, the minimum amount is Rs 10000 and in multiples
of Re. 0.01 thereof.
The fund seeks to collect a minimum subscription (minimum target) amount of Rs 50 lakhs under the scheme during the NFO period.
The entry and exit load charge will be nil for the scheme.
The scheme's performance will be benchmarked against S&P CNX Nifty index
The units of the scheme will initially be listed on NSE on allotment.
Mr. Sajit Pisharodi will be the fund manager for the scheme.