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Kotak CRISIL-IBX AAA Financial Services Index-Sep 2027 Fund-NFO

Kotak CRISIL-IBX AAA Financial Services Index-Sep 2027 Fund: Complete Overview
Kotak CRISIL-IBX AAA Financial Services Index-Sep 2027 Fund NFO Details
Fund Overview
How To Invest In The NFO After The Closure Date?
The Objective of The Fund
Peers of Kotak CRISIL-IBX AAA Financial Services Index-Sep 2027 Fund
Risk Factors In Such Funds
Past Performance of Index Funds
Kotak CRISIL-IBX AAA Financial Services Index-Sep 2027 Fund NFO-Who Can Invest?
Kotak CRISIL-IBX AAA Financial Services Index-Sep 2027 Fund-Growth Fund Managers:
Conclusion

Kotak CRISIL-IBX AAA Financial Services Index-Sep 2027 Fund: Complete Overview

Kotak Mahindra Mutual Fund launched the Kotak CRISIL-IBX AAA Financial Services Index-Sep 2027 Fund under its AMC ‘Kotak Mahindra Asset Management Company Ltd’. A sectoral target maturity debt index fund that is open-ended and invests in CRISIL-IBX AAA Financial Services Index-Sep 2027 components.

The NFO date is from August 30 to September 11, 2024, with an NFO price of Rs.100 and in multiples of Rs.1 thereafter. Kotak Mahindra Mutual Fund AUM is Rs.465624 crore. The exit load of the Scheme is 0.25% if units get redeemed within 180 days.

Today at the Kotak CRISIL-IBX AAA Financial Services Index-Sep 2027 Fund NFO blog, we're dedicated to providing you with useful information on this new NFO, including financial characteristics and prior performance if any.

Kotak CRISIL-IBX AAA Financial Services Index-Sep 2027 Fund NFO Details

The scheme is suitable for investors who are seeking income over the Target Maturity Period and an open-ended Target Maturity Index Fund that tracks the CRISIL-IBX AAA Financial Services Index-Sep 2027. There is no assurance that the scheme's investment goal will be met. The scheme will invest 95-100% of its units in the replication of Securities featured in the CRISIL-IBX AAA Financial Services Index Sep 2027, 0-5% in Cash & debt or money market instruments.

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Fund Overview

The Kotak CRISIL-IBX AAA Financial Services Index-Sep 2027 NFO minimum subscription amount is Rs.100 and in multiples of Rs.1 thereof.

Start Date	30 August 2024
End Date	11 September 2024
Allotment Date/Subscription Date/Re-open Date	The allotment is within 5 business days from the closure of the NFO and re-opens on or before 23 Sep 2024.
VRO Rating	-
Expense Ratio	Nil
Exit Load	- 0.25%, if units are redeemed within 180 days. - Nil after 180 days.
AUM	Rs.465624 crore.
Lock-in	NA
Stamp Duty	0.005% (From July 1st 2020)
Benchmark(s)	CRISIL-IBX AAA Financial Services Index-Sep 2027
Min. Investment	Rs.100 and in multiples of Rs.1.
Risk	Moderate
Short-Term Capital Gains (STCG)	For less than 2 years, as per Tax Slab.
Long-Term Capital Gains (LTCG)	For more than 2 years, a 12.50% Tax is applicable.

How To Invest In The NFO After The Closure Date?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then on 23 September 2024, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Kotak CRISIL-IBX AAA Financial Services Index-Sep 2027 Fund” or directly with the AMC or simply click the ‘Banner’ below.

The Objective of The Fund

The Scheme aims to produce returns by investing mostly in equity market arbitrage opportunities in the cash and derivatives areas, with the remaining portion going into debt and money market instruments. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset Allocation (% of Total Assets) of the Scheme's Portfolio will be as follows:

Types of Instruments	Minimum Allocation (% of Total Assets)	Maximum Allocation (% of Total Assets)
Units in the replication of Securities featured in the CRISIL-IBX AAA Financial Services Index-Sep 2027	95	100
Cash & debt or money market instruments	0	5

Peers of Kotak CRISIL-IBX AAA Financial Services Index-Sep 2027 Fund

Scheme	1Y Return	AUM (Rs.) / Fund Size (Rs.)
DSP Nifty Next 50 Index Fund	68.7%	720.45 Cr.
UTI Nifty Next 50 Index Fund	68.68%	4662.72 Cr.
DSP Nifty 50 Equal Weight Index Fund	42.78%	1683.73 Cr.

Since this scheme is a new scheme, hence no comparable data on its past performance against its peers is available. Over the last 3 and 5 years, the Kotak Mahindra Mutual Fund's annualized returns have been roughly 14.24% and 13.48% respectively.

Risk Factors In Such Funds

The Scheme is passively managed.
Inflows will be allocated to securities that yield at rates or with yields that are then common before the target maturity, thus overall performance may differ from what was anticipated when the portfolio was constructed.
Any index fund has tracking flaws or differences, which could lead to returns from the scheme that are inconsistent with the CRISIL-IBX AAA Financial Services Index's performance as of September 2027.
The scheme's success will be directly impacted by the NIFTY 50 Arbitrage TRI's performance. Therefore, any modification in composition due to weighting or stock selection will affect the scheme.
Due to variables affecting the underlying assets, investments in REITs and InvITs are prone to daily price changes and are therefore considered volatile.

Past Performance of Index Funds

Arbitrage Funds	NAV (Rs.)	Annualised Return	Return / Risk
DSP Nifty 50 Equal Weight Index Fund	26.86	42.78%	Very High
UTI Nifty Next 50 Index Fund	27.63	68.68%	Very High
DSP Nifty Next 50 Index Fund	29.56	68.7%	Very High

Kotak CRISIL-IBX AAA Financial Services Index-Sep 2027 Fund NFO-Who Can Invest?

This Fund is ideal for those who seek income over the Target Maturity Period and an open-ended Target Maturity Index Fund that tracks the CRISIL-IBX AAA Financial Services Index-Sep 2027.

Kotak CRISIL-IBX AAA Financial Services Index-Sep 2027 Fund-Growth Fund Managers:

Mr. Abhishek Bisen

Conclusion

The Kotak CRISIL-IBX AAA Financial Services Index-Sep 2027 Fund is appropriate for investors who are moderately risk-tolerant and aiming for income over the Target Maturity Period and an open-ended Target Maturity Index Fund that tracks the CRISIL-IBX AAA Financial Services Index-Sep 2027.

Always assess your Financial Goals, Risk tolerance, time horizons, etc. before making an investment decision.

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.