The scheme aims to replicate the composition of the MSCI India Index and generate returns in line with the performance of the index, subject to tracking errors.
It will be benchmarked against the MSCI India Index (Total Return Index). The minimum investment amount is Rs 5,000, with subsequent investments in multiples of Re 1. The scheme will be managed by Devender Singhal, Satish Dondapati, and Abhishek Bisen. There is no exit load applicable.
For international investors, Kotak International, the global business arm of the Kotak Group, has set up a separate fund named Kotak MSCI India ETF Fund to invest in the same. This fund will be open for subscription to a varied set of global investors.
The MSCI India Index is a widely recognised index used by global investors to track India’s growth story. Kotak Mutual Fund is bringing this index to India for the first time, currently comprising 156 companies from the large and midcap segments of the Indian market. Covering approximately 85% of the Indian equity universe, this index offers diversification across a wide range of sectors, providing a cost-effective and transparent investment option for exposure to a broad set of companies in the large and midcap space, according to a release by the fund house.“Kotak Mutual Fund is making history as the first company in India to partner with MSCI, to launch the Kotak MSCI India ETF. This isn’t just another fund – it’s your gateway to capturing India’s economic growth through a carefully curated selection of Large and Midcap companies shaping the nation’s future. The launch of this ETF reflects our dedication to provide products that suit varying risk appetites and investment horizons,” said Nilesh Shah, Managing Director, Kotak Mutual Fund.The Kotak MSCI India ETF could be an ideal choice for investors both global and domestic, who believe in India’s enduring potential and are ready to be part of its remarkable journey. This Fund is suitable for investors with a long-term view,” he added.
“The Kotak MSCI India ETF Fund is a gateway for global investors to tap into India’s dynamic growth story. This innovative fund feeds into the underlying Kotak MSCI India ETF that offers diversified exposure to Indian equities by replicating the MSCI India Index. With India’s robust economic trajectory, the Kotak MSCI India ETF Fund is poised to be a valuable addition to any global portfolio. At Kotak International, we are dedicated to providing cutting-edge investment solutions that cater to the evolving needs of our investors worldwide,” said Shyam Kumar, President and Head, of Kotak International.
Kotak MSCI India ETF is an addition to the company’s product line-up in the passive category, catering to investors’ interest in India’s Large and Midcap space. This ETF-based approach allows investors to potentially benefit from the overall growth and potential of Indian companies in these segments, said the release.
The scheme will allocate 95-100% in equity and equity-related securities covered by the MSCI India Index and 0-5% in debt and money market instruments.
The scheme is suitable for investors who are seeking long term capital appreciation and want investment in stocks comprising the MSCI India index and endeavours to track the benchmark index, subject to tracking errors. The principal invested in the fund will be at “very high” risk according to the riskometer of the scheme.