The new fund offer or NFO of the scheme is open for subscription and will close on July 24. The fund will reopen for continuous sale and repurchase on August 6.
The Fund provides a relatively cost-effective and transparent way to invest in the Indian stock market, offering investors diversified exposure to public sector enterprises.
The investment objective of the scheme is to provide returns that, before expenses, correspond to the total returns of the securities as represented by the underlying index, subject to tracking errors.
The scheme will be benchmarked against BSE PSU Index (Total Return Index). The scheme will be managed by Devender Singhal, Satish Dondapati, and Abhishek Bisen.
The minimum application amount for SIP and lumpsum is Rs 100 and any amount thereafter. The scheme will allocate 95-100% in equity and equity related securities covered by BSE PSU Index and 0-5% in debt and money market instruments.To achieve the investment objective, the scheme will follow a passive investment strategy with investments in stocks in the same proportion as in the BSE PSU Index. The investment strategy would revolve around reducing the tracking error through rebalancing of the portfolio, taking into account the change in weights of stocks in the index as well as the incremental collections/redemptions from the scheme.”At Kotak Mutual Fund, we continually strive to provide our investors with diverse investment solutions. The launch of the Kotak BSE PSU Index Fund is aligned with our commitment to offer products that cater to different risk appetites and investment horizons. While PSU stocks present a mixed landscape with varying opportunities across sectors, this index fund allows investors to gain broad exposure to the PSU segment. This fund provides a structured approach to PSU investing, allowing investors to participate in the potential of this segment passively while managing risks through diversification,” said Nilesh Shah, Managing Director of Kotak Mutual Fund.
“The Kotak BSE PSU Index Fund represents an important addition to our product lineup, catering to investors interested in India’s public sector enterprises. PSUs play a crucial role in key sectors of our economy, from energy and finance to defense and infrastructure2
. While individual PSU stocks may exhibit varying performance, this index-based approach allows investors to potentially benefit from the overall growth and reforms in the public sector. As India continues its economic trajectory, this fund offers investors a chance to be part of that journey through a comparative cost-effective and systematically managed investment vehicle,” said Devender Singhal, Executive Vice President and Fund Manager, Kotak Mutual Fund.
