scorecardresearchNFO Alert: Kotak Nifty SDL Jul 2028 Index Fund launched; all you need to

NFO Alert: Kotak Nifty SDL Jul 2028 Index Fund launched; all you need to know

Updated: 16 Mar 2023, 12:26 PM IST
TL;DR.

Kotak Mahindra Mutual Fund announced the launch of Kotak Nifty SDL Jul 2028 Index Fund. The scheme opened for public subscription on March 15, 2023, and will close on March 21, 2023.

Kotak Mahindra Mutual Fund announced the launch of Kotak Nifty SDL Jul 2028 Index Fund.

Kotak Mahindra Mutual Fund announced the launch of Kotak Nifty SDL Jul 2028 Index Fund.

Kotak Mahindra Mutual Fund announced the launch of Kotak Nifty SDL Jul 2028 Index Fund, an open-ended index fund scheme tracking the Nifty SDL Jul 2028 Index constituents.

The scheme opened for public subscription on March 15, 2023, and will close on March 21, 2023, and will re-open for continuous sale and repurchase on or before: March 31, 2023.

Q. What kind of mutual fund schemes is this?

This open-ended Target Maturity Index Fund scheme aims to generate returns commensurate with the performance of the Nifty SDL Jul 2028 Index. The fund is best for investors seeking income for the target maturity period.

This fund involves a relatively high interest rate risk and relatively low credit risk. However, there is no assurance that the scheme’s investment objective will be realized.

Q. What is the main objective of investing in this fund?

The scheme’s investment objective is to track the Nifty SDL Jul 2028 Index by investing in SDLs, maturing on or before July 2028, subject to tracking differences.

However, there is no assurance that the objective of the scheme will be realised and the scheme does not assure or guarantee any returns.

Q. How may one invest in this fund?

Investors can invest under the scheme with a minimum investment of 5000 per plan/option and in multiples of any amount thereafter. There is no upper limit for investment.

The options available under each plan include:

Under normal circumstances, the asset allocation of the scheme will be as follows:

InvestmentsIndicative AllocationRisk Profile
Replication of securities covered by Nifty SDL Jul 2028 Index95 - 100%Low – Medium
Cash and debt/money market instruments0 - 5%Low

Q. Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such index funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:

Name of the index fundYield to Date (YTD) (in %)
ICICI Prudential Nifty SDL Sep 2026 Index Fund0.66
Axis Nifty SDL September 2026 Debt Index Fund0.70
Aditya Birla Sun Life Crisil IBX AAA Jun 2023 Index Fund1.27
Kotak Nifty SDL Jul 2026 Index Fund0.68
IDFC CRISIL IBX 90:10 SDL Plus Gilt0.70
Source: MoneyControl

Q. How will the scheme benchmark its performance?

The performance of Kotak Nifty SDL Jul 2028 Index Fund is benchmarked against the Nifty SDL Jul 2028 Index.

Q. Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” will also be “Nil”.

Q. Who will manage this scheme?

Abhishek Bisen will be the fund manager for the scheme.

Q. Does the fund contain any inherent risk?

The scheme involves “Moderate Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to moderate risk. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

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First Published: 16 Mar 2023, 12:26 PM IST