Kotak Mahindra Mutual Fund has introduced the Kotak Nifty Commodities Index Fund which is an open-ended index fund that tracks the Nifty Commodities index.
NFO Details
The New Fund Offer (NFO) opens today, February 17, 2025, and closes on March 3, 2025. The fund reopens on or before March 18, 2025, and the exit load is nil. The scheme is classified as index funds and uses the Nifty Commodities Index (TRI) as its benchmark. The risk level of the scheme, as well as its benchmark, is classified as very high.
The minimum investment for the NFO, continuous investment, and SIP purchase is Rs 100, with any amount thereafter.
According to Kotak Mutual Funds, the objective of this scheme is to provide returns that correspond to the total returns of the Nifty Commodities Index, before expenses, subject to tracking error. However, there is no assurance that the investment objective will be achieved.
The fund will invest 95–100 per cent of its total assets in equity and securities linked to equity that are included in the Nifty Commodities Index. It may invest 0-5 per cent in debt and money market instruments, including government securities, treasury bills, commercial papers, and triparty repo, as per regulatory guidelines.
Who Should Invest?
Kotak Mutual funds suggest that the fund is suitable for investors looking for long-term capital growth and returns that correspond to the Nifty Commodities Index, subject to tracking error. Since the fund tracks a sector-specific index, it is classified as high risk due to the inherent volatility of the commodities sector.
