NFO Update: Kotak Mahindra AMC Launches Kotak MSCI India ETF

Kotak Mahindra Asset Management Company (KMAMC) has launched the Kotak MSCI India ETF, an open-ended exchange-traded fund that tracks the MSCI India Index. The fund is open for subscription from today until 12th February 2025.

NFO Details

This fund is an open-end exchange-traded fund that seeks to replicate or track the MSCI India Index. With a minimum investment of Rs 5,000 to the fund, subsequent contributions can be made in multiples of Re 1. It will allocate 95-100 per cent of its assets in equity and equity-related securities that are part of the MSCI India Index, with a small portion of 0-5 per cent in debt and money market instruments. The scheme carries a nil exit load. The fund managers overseeing this scheme are Devender Singhal, Satish Dondapati, and Abhishek Bisen.

According to Kotak Mahindra, this fund seeks to give investors a low-cost and diverse approach to acquire exposure to the performance of Indian big and mid-cap companies. The fund is structured to track or replicate the MSCI India Index, which represents nearly 85 per cent of the Indian equity market. Along with the launch of the Kotak MSCI India ETF, Kotak International, the international division of the Kotak Group, has unveiled the Kotak MSCI India ETF Fund, catering to global investors.

Follow Outlook Money's Complete Coverage of Union Budget 2025 Here.

Nilesh Shah, Managing Director, KMAMC, said: “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. The ETF reflects our dedication to providing products that suit varying risk appetites and investment horizons. It’s an ideal choice for both global and domestic investors who believe in India’s enduring potential and have a long-term view.”

Shyam Kumar, President & Head, Kotak International mentioned, “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.”

Who Should Invest?

As per the press release, the Kotak MSCI India ETF is designed for long-term investors interested in gaining diversified exposure to India’s large and midcap companies. It is suited for those with a higher risk tolerance seeking potential capital appreciation. The scheme is appropriate for both domestic and international investors with a focus on India’s economic growth.