NFO launch! This Kotak fund has exposure to low volatile companies across sectors | Should you invest?

financialexpress.com:

Kotak Mahindra AMC will launch its new fund offer (NFO) – Kotak Nifty 100 Low Volatility 30 Index Fund – on May 22. The offer will remain open till May 3, 2024.

Investment objective of the scheme

The investment objective of the scheme is to provide returns that, before expenses, correspond to the total returns of the securities as represented by the underlying index, subject to tracking errors.

Kotak Nifty 100 Low Volatility 30 Index Fund benchmark index

The Nifty 100 Low Volatility 30 Index is a strategic investment index comprising stocks of large market capitalisation, selected from the Nifty 100 Index. Focus on low-volatility stocks within the Nifty 100 Index ensures an investment portfolio. The selection of securities and their weights are based on volatility for the last year. It offers a cost-effective and transparent approach to investing in the Indian stock market within the large-cap space.

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Nilesh Shah, Managing Director of Kotak Mahindra AMC, said during the launch of the NFO, “At Kotak Mutual Fund, we continually strive to provide our investors with diverse investment solutions.”

“The launch of the Kotak Nifty 100 Low Volatility 30 Index Fund is aligned with our commitment to offer products that cater to different risk appetites and investment horizons. Currently, large caps are at reasonable valuations as compared to Midcaps and Small caps. This index fund offers investors an opportunity to invest in a rule-based index that invests in low volatile large-cap companies across different sectors.”

Key Highlights of the Kotak Nifty 100 Low Volatility 30 Index Fund:

Volatility mitigation: Aims to limit