Kotak Mutual Fund launches Kotak S&P BSE Housing Index Fund

economictimes.indiatimes.com:

Kotak Mutual Fund has launched Kotak S&P BSE Housing Index Fund, an open-ended scheme replicating/tracking S&P BSE Housing Index. The new fund offer of the scheme is open for subscription and will close on August 21. The scheme will re-open for continuous sale and repurchase within five business days from the date of allotment units on or before. The scheme will be benchmarked against S&P BSE Housing Index (Total Return Index). The scheme will be managed by Devender Singhal, Satish Dondapati, and Abhishek Bisen.

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The investment objective of the scheme is to replicate the composition of the S&P BSE Housing Index and to generate returns that are commensurate with the performance of the S&P BSE Housing Index, subject to tracking errors. The scheme will follow a passive investment strategy with investments in stocks in the same proportion as in S&P BSE Housing Index. The scheme will invest 95-100% in equity and equity-related securities covered by the S&P BSE Housing Index and 0-5% in debt and money market instruments. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 for purchases and of Re 0.01 for switches. The minimum amount for SIP is Rs 500 (subject to a minimum of 10 SIP instalments of Rs 500 each). The scheme will offer a regular plan and direct plan – with growth and IDCW options. The scheme is suitable for investors who are seeking long term capital growth. At present, there is one more scheme in the market which tracks S&P BSE Housing Index (Total Return Index). UTI Mutual Fund launched UTI S&P BSE Housing Index Fund in June 2023 only. The scheme has offered 5.96% since inception.