Kotak Mahindra Asset Management Company will launch India’s first ever Nifty Alpha 50 ETF, Kotak Nifty Alpha 50 ETF. It will track Nifty Alpha 50 Index.
Kotak Mahindra Asset Management Company will launch India’s first ever Nifty Alpha 50 ETF, Kotak Nifty Alpha 50 ETF.
Kotak Mahindra Asset Management Company will launch India’s first ever Nifty Alpha 50 ETF, Kotak Nifty Alpha 50 ETF. It will track Nifty Alpha 50 Index. This open ended fund offers an opportunity to invest in a well diversified portfolio of stocks with high alpha. It can also be used as a tool to balance the active portfolio of investors, said a release.
Alpha can also be used for better returns. This term measures the higher or lower return of a stock than the market demand for its risk class.
Why invest in it?
Now the question arises that why a person should invest in Kotak Mahindra Nifty. The reason for this is because first thing, it is easy to understand. Second, it is priced lower as compared to actively managed funds. Next thing is that compared to Nifty 50 and Nifty 50, it has substantial alpha.
The next good thing is that since it tracks the index, there is no discrimination. Apart from this, it is a good option for investors who want long-term capital growth.
Kotak’s Nifty Alpha 50 ETF tracks the performance of 50 stocks listed with NSE, which have higher alpha over the past one year. According to the parameters, these companies have been selected from among the top 300 companies on the basis of average free float market capitalization and average daily turnover in the last six months.
Money can be invested till December 15
This new fund is open for subscription from 1 December 2021 to 15 December 2021.
Nilesh Shah, Group President and Managing Director, Kotak Mahindra Asset Management Company Limited said that their decision to launch Kotak Nifty Alpha 50 ETF has been taken at a time when the market has cooled down and valuations have eased. The diversified stocks in the ETF will be based on Kotak’s well-defined strategy, which will benefit investors over the long term.
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