Kotak Mahindra MF launches Sensex ETF

Kotak Mahindra Asset Management Company has launched an exchange traded fund focusing on investing in the stocks that comprise the BSE SENSEX. The investment objective of the scheme is to provide returns that closely correspond to the total returns of the BSE SENSEX subject to tracking errors. The scheme’s performance will be benchmarked against BSE Sensex. The fund is open for subscription from May 7, 2008 till May 16, 2008.  (View - New Fund Offers open NOW)

Speaking at the occasion, Sandesh Kirkire, Chief Executive Officer, Kotak Mahindra Asset Management Company said, “Our endeavor has been to provide diverse investment options to cater the requirement of our investors. Kotak Sensex ETF is one such product, which enables a long-term investment strategy at significantly lower costs. SENSEX is a very widely tracked index and is a representative of the Indian economic growth story. Kotak Sensex ETF offers investors to partake in the same."  

Announcing the launch, Bombay Stock Exchange Managing Director and CEO, Rajnikant Patel said, “Since its corporatisation and demutualisation, BSE has launched several initiatives for the investing community. The Kotak Sensex ETF is the latest such offering. Sensex is the flagship index of the Indian capital markets and the Kotak Sensex ETF represents an easy, liquid and effective instrument to track the index. I am sure the ETF will be well received by both retail as well as institutional investors.”

The minimum investment amount during the New Fund Offer is Rs 10,000 and in multiples of Rs 1000. The units would be listed on BSE to provide liquidity through secondary market.

Entry Load during NFO: For investments < Rs 1crore – 1% and Nil for investments = > Rs 1 Crore.