Kotak Mahindra Mutual Fund Launches BSE PSU Index Fund

Kotak Mahindra AMC has introduced the Kotak BSE PSU Index Fund, a passive equity scheme mirroring the BSE PSU Index comprising 56 PSU stocks. This fund aims to capitalize on the strong momentum in public sector undertaking (PSU) stocks, which have shown significant growth recently. Investors can participate in India’s economic trajectory through a cost-effective investment vehicle managed systematically by the fund.

Fund Details and Objectives

The Kotak BSE PSU Index Fund seeks to replicate the total returns of the BSE PSU Index, subject to tracking errors. It allocates 100-95% to equity and equity-related securities covered by the index, with the remainder in debt and money market instruments. The fund is benchmarked against the BSE PSU Index (Total Return Index) and targets long-term capital appreciation.

Fund Managers

The fund managers include Mr. Abhishek Bisen and Mr. Devender Singhal, who bring extensive experience in fund management and equity research to Kotak AMC. They aim to optimize returns while managing risks effectively in line with the fund’s objectives.

Peer Scheme Comparison

In comparison with peer schemes like Aditya Birla Sun Life PSU Equity Fund and ICICI Prudential PSU Equity Fund, the Kotak BSE PSU Index Fund offers a distinct passive investment approach focused on PSU stocks’ performance.

Investment Opportunity

Investors looking for exposure to PSU stocks and seeking to benefit from India’s economic growth can consider the Kotak BSE PSU Index Fund, with a minimum investment amount of Rs 100 during the NFO period until July 24th, 2024.