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Kotak Mahindra Asset Management Company will launch India’s first ever Nifty Alpha 50 ETF, Kotak Nifty Alpha 50 ETF, which will track Nifty Alpha 50 index. This open-ended fund will provide the opportunity to invest in a well-diversified portfolio of stocks with high Alphas. 

It can also be used as a tool to balance investors’ active portfolios. Alpha, also referred to as ‘excess return’, is a term that measures the return earned by a stock above or below demanded by the market for its risk class, a release said.

Here are the 5 things to know about the fund: 

  • Kotak's Nifty Alpha 50 ETF will track the performance of 50 stocks listed with NSE with high Alpha’s in the last one year. 
  • As per the criteria, these companies are selected from top 300 companies by average free-float market capitalization and average daily turnover for the last six months.
  • Why invest in Kotak Nifty Alpha 50 ETF? Easy to understand; Low cost as compared to actively managed funds; Significant Alpha over Nifty 50 and Nifty 100; No biases as it tracks an index; Suitable for investors seeking long-term capital growth. 
  • The new fund is open for subscription from December 1, 2021 to December 15, 2021.

Nilesh Shah, Group President and Managing Director, Kotak Mahindra Asset Management Co. Ltd. said, “Our decision to launch Kotak Nifty Alpha 50 ETF comes at a time when the market has cooled down and valuations have eased. The diversified stocks in the ETF will be based on Kotak's well-defined strategy that will benefit investors over the long term".

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