Kotak Mahindra Mutual Fund launches Nifty ETF
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Last Updated: Monday, January 11, 2010, 18:45
  
New Delhi: Kotak Mahindra Asset Management Company, on Monday launched Nifty ETF - an exchange traded fund that focuses on investing in 50 stocks comprising the S&P CNX Nifty.

The open-ended Exchange Traded Fund (ETF) aims to provide returns before expenses that closely correspond to the returns derived out of the S&P CNX Nifty, subject to tracking errors, said Kotak Mahindra Asset Management Company CEO Sandesh Kirkire.

The ETF will be listed and can be traded on the National Stock Exchange.

Each unit of the scheme will be approximately equal to 1/10th of the value of the S&P CNX Nifty.

The Kotak Nifty ETF offers investors exposure to Nifty with a single order, he said, adding, it is like any other listed share enabling intra day buying and selling.

Also with the underlying value being similar to Nifty futures, the fund provides hedging and arbitrage possibilities, he said.

The minimum investment amount during the New Fund Offer, that closes on January, 19 is Rs 10,000 and in multiples of Rs 1, 000 thereafter.

Kotak Mahindra Asset Management Company currently operates a Gold ETF, a PSU Bank ETF and a SENSEX ETF.

PTI


First Published: Monday, January 11, 2010, 18:45


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