Kotak Mahindra MF Launches Nifty Alpha 50 Index Fund at ₹10/unit; NFO Opens July 28

Mumbai, July 25, 2025 – Kotak Mahindra Mutual Fund has announced the launch of its latest passive investment product, the Kotak Nifty Alpha 50 Index Fund, an open-ended scheme designed to replicate and track the Nifty Alpha 50 Index. Just like other index funds, this one will also mimic the composition and performance of the underlying index (Nifty Alpha 50).

The Nifty Alpha 50 Index is a thematic equity index introduced by the National Stock Exchange (NSE) to track the performance of high-alpha generating stocks within the broader Nifty 500 universe. The New Fund Offer (NFO) opens on July 28, 2025 and will close on August 11, 2025, with units priced at ₹10 each.

Scheme Highlights and Objectives

The fund aims to generate long-term capital growth by replicating the Nifty Alpha 50 Index, which comprises 50 stocks listed on the NSE with the highest alpha scores – a measure of excess return relative to a benchmark. The composition of the index is optimized for investability and replicability by applying turnover and market capitalization filters. Constituents are weighted by their alpha values, with the highest alpha stock receiving the highest weight.

Asset Allocation Strategy

The scheme will allocate:

• 95-100% to equity and equity-related instruments comprising the Nifty Alpha 50 Index
• 0-5% to debt and money market instruments

Additionally, the scheme may temporarily invest in equity derivatives for short durations during index changes, rebalancing, or corporate actions. Up to 20% of the equity portion may be exposed to derivatives, and securities lending is permitted up to 20% of net assets.

Regulatory Compliance & Disclosures

• The fund complies with SEBI Master Circular SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024.
• Tracking error is capped at 2%, and tracking difference disclosures will be made monthly.
• NAVs will be disclosed daily on the AMC and AMFI websites by 11 p.m., and redemption proceeds will be dispatched within 3 working days, in line with SEBI timelines.

Risk and Suitability

The scheme is rated “Very High Risk” on the SEBI-mandated Risk-o-Meter, aligning with the risk profile of the Nifty Alpha 50 Index (TRI). It is suited for investors seeking long-term capital appreciation through passive investing in alpha-driven stocks.

About the Fund House

Kotak Mahindra Mutual Fund, managed by Kotak Mahindra Asset Management Company Ltd, is one of India’s leading fund houses. It manages a wide range of schemes, including active, passive, sectoral, hybrid, and debt funds. The AMC is a part of the Kotak Mahindra Group, a prominent financial conglomerate listed on Indian stock exchanges.

Investors can subscribe to the fund via ASBA applications, mutual fund distributors, the Kotak MF website, or official points of acceptance. SIPs, STPs, and SWPs are available both during and after the NFO period.

Note: Mutual Fund investments are subject to market risks. Please read all scheme-related documents carefully.

REF: https://portal.amfiindia.com/spages/14276.pdf

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