Kotak Mutual Fund launches NIFTY Midcap 150 Momentum 50 Index Fund

Kotak Mutual Fund has launched Kotak NIFTY Midcap 150 Momentum 50 Index Fund, an open-ended scheme replicating/tracking the NIFTY Midcap 150 Momentum 50 Index.

The new fund offer or NFO of the scheme is open for subscription and will close on October 3.

Kotak NIFTY Midcap 150 Momentum 50 Index Fund offers investors an opportunity to target the potentially high-growth midcap segment, while focusing on stocks showing recent positive performance trends.

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"The launch of the Kotak NIFTY Midcap 150 Momentum 50 Index Fund aligns with our commitment to offering active and passive products that cater to different risk appetites and investment horizons. This index fund offers investors an opportunity to invest in a rule-based index that invests in midcap companies selected with the momentum strategy,” said Nilesh Shah, Managing Director, Kotak Mahindra AMC

“The Midcap plus Momentum combination can provide investors the opportunity to invest in midcap companies with potential high growth without the hassle of constantly monitoring and adjusting investments,” he added.

The minimum application amount is Rs 100 and in any amount thereafter. The scheme will be benchmarked against Nifty Midcap 150 Momentum 50 Index - TRI. The scheme will be managed by Devender Singhal, Satish Dondapati, and Abhishek Bisen.

The scheme is suitable for investors who are looking for long-term capital growth and want a return that corresponds to the performance of Nifty Midcap 150 Momentum 50 Index subject to tracking error.

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The scheme will allocate 95-100% in equity and equity related securities covered by NIFTY Midcap 150 Momentum 50 Index and 0-5% in debt/money market instruments.

“The NIFTY Midcap 150 Momentum 50 Index has historically outperformed other midcap indices. By focusing on momentum stocks, this fund offers investors a way to potentially benefit from price trends in a passive and disciplined manner. The strategy allows investors looking for growth and able to handle some level of risk to access the high-growth midcap segment while maintaining a systematic, rule based approach,” said Devender Singhal, Executive Vice President & Fund Manager, Kotak Mahindra AMC.