Mumbai: Kotak Mahindra Asset Management Company Ltd (“KMAMC” / “Kotak Mutual Fund”) has announced the launch of Kotak Nifty Midcap 50 Index Fund, an open-ended scheme replicating or tracking the Nifty Midcap 50 Index. The scheme opens for public subscription on July 25th, 2024, and closes on August 8th, 2024.
The Nifty Midcap 50 Index comprises the top 50 midcap stocks selected from the Nifty Midcap 150 Index based on their full market capitalization, with preference given to companies that are tradable in NSE’s Future & Options segment. By including a mix of top midcap stocks from various sectors under the Nifty Midcap 150 Index, this index provides focused representation of the midcap segment. It offers a relatively cost-effective and transparent way for investors to participate in the Indian stock market, providing exposure to well-known midcap companies.
Nilesh Shah, Managing Director of Kotak Mahindra AMC, said, "At Kotak Mutual Fund, we continually strive to provide our investors with diverse investment solutions. The launch of the Kotak Nifty Midcap 50 Index Fund aligns with our commitment to offering active and passive products that cater to different risk appetites and investment horizons. While Midcap 50 Index presents a mixed landscape with varying opportunities across sectors, this index fund allows investors to gain focused exposure to a select group of top midcap companies within Nifty Midcap 150 Index. This index fund facilitates investors to capitalize on the potential of the midcap segment. However, it is important to be cognizant of proper asset allocation of your investments before investing.”
Devender Singhal, Executive Vice President & Fund Manager, Kotak Mahindra AMC said, "The Kotak Nifty Midcap 50 Index Fund is an addition to our passive product line-up, catering to investors’ interest in India's Midcap space. Midcaps play a crucial role in key sectors of our economy, from Capital Goods and finance to Healthcare and Information Technology. While individual Midcap stocks may exhibit varying performance, this index-based approach allows investors to potentially benefit from the overall growth and innovation potential of the mid-sized companies.”