March 15, 2023
mayank
Kotak Nifty Small cap 50 Index Fund NFO Guidance:
by Paresh Gordhandas, C.A., Research Analyst.
This fund aims to generate returns that are commensurate with the performance of the Nifty Small cap 50 Index, which has provided 8.23% p.a. returns since inception. At present due to multiple issues, the midcap and small cap stocks have declined sharply and such down trend in small cap stocks is expected to continue for some time. So, if you apply in this IPO, initially, the NAV is expected to decline for some time. Once the sentiment improves, such stocks are expected to bounce back and provide strong returns in the long run. So, we suggest ignoring short term result and apply only with long term angle. I suggest to study performance-trend of the fund managers given below, which can indicate, whether they can beat the benchmark index or not.
Kotak Nifty Small cap 50 Index Fund NFO
NFO opens on March 16, 2023
NFO will close on March 29, 2023
(Our detailed Guidance is given at the bottom of the Page)
Investment Strategy
The scheme seeks to replicate the composition of the Nifty Small cap 50 Index and to generate returns that are commensurate with the performance of the Nifty Small cap 50 Index, subject to tracking errors.
Basic Details
| Fund House | Kotak Mahindra Mutual Fund |
| Issue Open | 16 March 2023 |
| Issue Close | 29 March 2023 |
| Type | Open-ended |
| Category | Equity: Small Cap |
| Min. Investment(Rs) | 5,000 |
| Plans | Growth, IDCW |
| Lock-in Period | NA |
| Exit Load | 0 |
| Riskometer | Very High |
| Benchmark | NIFTY Smallcap 50 TRI |
About Benchmark Index
The primary objective of the Nifty Smallcap 50 Index is to capture the movement of the smallcap segment of the market. The index represents top 50 companies selected based on average daily turnover from the top 100 companies selected based on full market capitalisation in Nifty Smallcap 250 Index.
Nifty Smallcap 50 Index is computed using free float market capitalization method, wherein the level of the index reflects the total free float market value of all the stocks in the index relative to particular base market capitalization value.
Nifty Smallcap 50 Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs and structured products.
Index Variant: Nifty Smallcap 50 Total Returns Index
Past Performance of Benchmark Index
| Index Returns (%) | QTD | YTD | 1 Year | 5 Years | Since Inception |
| Price Return | -4.94 | -4.94 | -8.58 | -1.31 | 8.23 |
| Total Return | -4.78 | -4.78 | -7.67 | -0.29 | 9.46 |
| Statistics ## | 1 Year | 5 Years | Since Inception |
| Std. Deviation * | 19.95 | 23.64 | 25.93 |
| Beta (NIFTY 50) | 0.98 | 0.92 | 0.93 |
| Correlation (NIFTY 50) | 0.75 | 0.76 | 0.79 |
Fundamentals
| P/E | P/B | Dividend Yield |
| 19.83 | 3.42 | 2.03 |
Fund Manager
1) Abhishek Bisen
Education: Mr. Bisen is a BA and MBA in Finance.
Experience: Prior to joining Kotak AMC, he was working with Securities Trading Corporation Of India Ltd where he was looking at Sales & Trading of Fixed Income Products apart from doing Portfolio Advisory. His earlier assignments also include 2 years of merchant banking experience with a leading merchant banking firm.
Past Performance of his Schemes
| Fund | Kotak Multicap Fund – Regular Plan | It’s Benchmark | Kotak Equity Savings Fund – Regular Plan | It’s Benchmark |
| 1 Year | 11.08 | 1.41 | 6.23 | 3.74 |
| 3 Year | — | — | 11.39 | 9.63 |
| 5 Year | — | — | 8.04 | 7.87 |
| 7 Year | — | — | 8.68 | 8.57 |
| 10 Year | — | — | — | — |
2) Devender Singhal
Education: Mr. Singhal has done B.A. (Maths) from Delhi University and PGDM, Finance from Fore School of Management, Delhi.
Experience: Prior to joining Kotak Mahindra AMC , he has worked with Kotak Securities Ltd.(July 2007 — January 2009) ,Religare (February 2006 — June 2007), Karvy (July 2004 — January 2006), P N Vijay Financial Services Pvt Ltd(2001 — 2004) and Dundee Mutual Fund( Summer Trainee ) (May 2000 — June 2000 ).
Past Performance of his Schemes
| Fund | Kotak Nifty 50 ETF | It’s Benchmark | Kotak Nifty 50 Value 20 ETF | It’s Benchmark |
| 1 Year | 2.08 | 2.68 | 3.38 | 2.68 |
| 3 Year | 20.72 | 21.49 | 28.24 | 21.49 |
| 5 Year | 11.50 | 11.39 | 15.84 | 11.39 |
| 7 Year | 13.33 | 13.90 | 16.86 | 13.90 |
| 10 Year | 12.11 | 12.85 | — | — |
3) Satish Dondapati
Education: Mr. Dondapati has done MBA Finance
Experience: Prior to joining Kotak Mutual fund he has worked with Centurian Bank Of Punjab, Bajaj Capital Ltd.
Past Performance of his Schemes
| Fund | Kotak Nifty PSU Bank ETF | It’s Benchmark | Kotak Nifty Bank ETF | It’s Benchmark |
| 1 Year | 37.86 | 10.93 | 12.17 | 10.93 |
| 3 Year | 32.84 | 15.98 | 15.70 | 15.98 |
| 5 Year | 4.20 | 10.10 | 9.53 | 10.10 |
| 7 Year | 6.77 | 14.95 | 14.59 | 14.95 |
| 10 Year | 1.47 | 13.24 | — | — |
AMC:
Kotak Mahindra Asset Management Company Ltd
Address: The Capital Building, Behind ICICI Bank, G Block BKC, Bandra Kurla Complex Bandra (E) Mumbai – 400051
Website: https://www.kotakmf.com/
Registrar & Transfer Agent:
Computer Age Management Services Ltd.
Address: 7th Floor, Tower II, Rayala Towers, 158, Anna Salai, Chennai – 600002
Website: www.camsonline.com
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