Kotak Mutual Fund launches 50 mid-cap exchange-traded funds: 5 things you need to know

The Kotak Midcap 50 ETF will replicate the Nifty Midcap 50 index

Leading fund company Kotak Mahindra Mutual Fund today announced the launch of an exchange-traded fund (ETF) – Kotak Midcap 50 ETF – an open program that will track the Nifty Midcap 50 Index. Here’s what investors need to know know about the Kotak Midcap ETF.

Kotak Midcap 50 ETF: 5 Things Investors Should Know

  1. The new fund offering (NFO) is benchmarked against the Nifty Midcap 50 Index (TRI), which captures movement in the mid-cap segment of the market.
  2. The program opens for subscription today, January 6, 2022 and ends on January 20, 2022. Investors can invest a minimum amount of Rs 5,000 during the offering period of the new fund.
  3. The Kotak Midcap 50 ETF will track the Nifty Midcap 50 Index, which comprises the top 50 companies based on total market capitalization of the Nifty Midcap 150 Index, with preference given to stocks on which derivative contracts are available at the National Stock Exchange.
  4. In the event that 50 mid-cap stocks do not have a derivative contract available, they could have less than 50 stocks in the index.
  5. Since 2004, in 11 out of 18 years, the Nifty Midcap 50 Index has outperformed Nifty 50 and Nifty 500. Additionally, Nifty Midcap 50 has generated a CAGR of 44.9% year-to-date, compared to 25.6 % for Nifty 50 and Nifty 50. 31.6% for Nifty 500, according to the NSE.

Nilesh Shah, Group Chairman and Managing Director, Kotak Mahindra Asset Management Company:

“Kotak’s ETF Midcap 50 program is a good choice for investors looking to complement or diversify their investments in active funds through passive funds.

With the economy on the mend over the past year, many mid-cap companies have improved their performance over this period and should generate better returns going forward, which would bode well for investors. investors. in the medium and long term.

“Furthermore, with valuations of the underlying index having declined over the past few months following recent bouts of correction in the broader market, now is the time to invest in the Kotak Midcap ETF. 50” , Mr. Shah added.

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Dolores W. Simon