Kotak Mutual Fund has announced the launch of the Kotak Nifty Alpha Low-Volatility 30 Index Fund, an open-ended scheme replicating/tracking the Nifty Alpha Low-Volatility 30 Index. The new fund offer or NFO of the scheme is open for subscription and will close on June 12. The fund will reopen for continuous sale and repurchase on June 22.Also Read | MF Tracker: Parag Parikh Flexi Cap Fund turns Rs 10,000 SIP to over Rs 51 lakh in 13 years. Too late to invest? The Nifty Alpha Low-Volatility 30 Index tracks the performance of 30 companies selected on the basis of a combination of Alpha and Low-Volatility factors. Alpha reflects the potential of stocks to outperform the broader market, while Low-Volatility focuses on stocks that exhibit relatively stable price movements, according to a press release by the fund house.By combining these factors, the index seeks to deliver a balance between return potential and risk management. The index follows a rule-based approach and is rebalanced periodically, the release said.“At Kotak Mutual Fund, we remain focused on offering solutions that address evolving investor needs. The Kotak Nifty Alpha Low-Volatility 30 Index Fund follows a factor-based approach that combines Alpha and Low-Volatility characteristics, providing investors exposure to equities through a structured and transparent framework. The fund can be considered by investors with a long-term investment horizon,” said Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company.The fund is suitable for investors who are seeking long-term capital growth and want a return that corresponds to the performance of Nifty Alpha Low-Volatility 30 Index subject to tracking error."The strategy combines Alpha and Low-Volatility to identify stocks that have the potential to outperform, while remaining relatively stable across market movements. Over time, this helps create a portfolio that can participate in opportunities while keeping volatility in check. It offers investors a simple way to access a diversified, factor-led equity portfolio,” said Devender Singhal, Executive Vice President & Fund Manager, Kotak Mahindra Asset Management Company.The minimum application amount is Rs 1,000 and any amount thereafter and for SIP the minimum amount is Rs 500 and any amount thereafter. The performance will be benchmarked against Nifty Alpha Low-Volatility 30 Index (Total Return Index (TRI)) and will be managed by Devender Singhal, Satish Dondapati and Abhishek Bisen.Also Read | How to rebalance mutual funds, FDs & PF investments before retirement? Expert shares roadmap The fund will allocate 95-100% in equity and equity-related securities covered by the Nifty Alpha Low-Volatility 30 Index and 0-5% in debt/money market instruments. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in along with your age, risk profile, and Twitter handle.
NFO Alert: Kotak Mutual Fund launches Kotak Nifty Alpha Low-Volatility 30 Index Fund
Kotak Mutual Fund has launched the Kotak Nifty Alpha Low-Volatility 30 Index Fund, an open-ended scheme tracking the Nifty Alpha Low-Volatility 30 Index. The fund, open for subscription until June 12, aims to provide investors with exposure to equities through a structured, factor-based approach combining Alpha and Low-Volatility characteristics for long-term capital growth.
Kotak Mutual Fund launches the Kotak Nifty Alpha Low-Volatility 30 Index Fund (NFO open until June 12), tracking a 30-stock index that blends Alpha and Low-Volatility factors with 95-100% equity allocation and minimum SIP of Rs 500. The factor-based, rule-based rebalancing approach positions it as a structured alternative to active funds for long-horizon portfolios seeking outperformance with controlled drawdown risk.
