Kotak AMC Launches India's First Nifty Alpha 50 ETF, Know Everything

Kotak's Nifty Alpha 50 ETF will track the performance of 50 stocks listed with high alpha on NSE over the past one year. The new fund is open for subscription from December 1, 2021 to December 15, 2021.

Kotak AMC Launches India's First Nifty Alpha 50 ETF, Know Everything

Kotak Mahindra Asset Management Company Limited on Friday announced the launch of India's first Nifty Alpha 50 ETF, Kotak Nifty Alpha 50 ETF. In a statement, Kotak AMC said, it is an open-ended scheme that will track the Nifty Alpha 50 Index and gives investors an opportunity to invest in a diversified portfolio of stocks with high alpha. It can also be used as a tool to balance the active portfolio of investors.

According to the statement, Kotak's Nifty Alpha 50 ETF will track the performance of 50 stocks listed on NSE with high alpha over the past one year. These companies have been selected from among the top 300 companies on the basis of average free-float market capitalization and daily average turnover for the past six months.

What is alpha?

Alpha, also known as 'access return', is a term that measures the return earned by a stock above or below demand by the market for its risk class.

The new fund is open for subscription from December 1, 2021 to December 15, 2021. The diversified stocks in the ETF will be based on Kotak's well-defined strategy, which will benefit investors in the long run.

The AMC further said that Kotak Nifty Alpha 50 ETF would be suitable for investors who want to build long-term capital.

Increasing number of SIP investors in mutual funds

Investment in the mutual fund industry through Systematic Investment Plan or SIP has touched Rs 67,000 crore in the first seven months (April-October) of the current financial year. This reflects the growing popularity of SIPs among retail investors. This information has been received from the data of Association of Mutual Funds in India (AMFI). In the financial year 2020-21, an investment of Rs 96,080 crore came through this investment channel.

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23.83 lakh new registrations in October

A total of 23.83 lakh new registrations for SIP investments took place in October. During the first seven months of the current financial year, April-October, the total registration reached 1.5 crore. This is more than the 1.41 crore new SIP registrations done in the last financial year. At present, mutual fund companies have 4.64 crore SIP accounts through which investors continuously invest in mutual fund schemes.

Easy way to invest in SIP Mutual Fund

Systematic Investment Plan (SIP) is a convenient and easy way to invest in mutual funds. Through this, it helps to invest regularly without mistake. It also reduces the risk in investment. Systematic Investment Plan or just a fixed amount every month to invest in your favorite subject. Usually SIP is started in Equity Mutual Funds. Discipline is very important in mutual fund investment and SIP maintains your discipline. SIPs continue to invest in mutual funds regularly regardless of whether the stock market is bullish or bearish.

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