The Kotak Nifty Alpha 50 ETF is the first Nifty Alpha 50 ETF in India, according to Kotak Mahindra Mutual Fund. It's an open-ended scheme that tracks the Nifty Alpha 50 index and allows investors to participate in a well-diversified portfolio of high-alpha firms. Subscriptions for the NFO are available until December 15th.
This ETF, according to the fund firm, may also be used to help investors balance their active portfolios.
The Nifty Alpha 50 ETF from Kotak will follow the performance of 50 NSE-listed equities with a high Alpha over the previous year. These firms were chosen among the top 300 companies based on their average free-float market capitalization and average daily turnover over the previous six months, according to the criteria.
What exactly is Alpha?
Alpha, sometimes known as 'excess return,' is a phrase that refers to a stock's return that is more or lower than the market's demand for its risk class.
According to the mutual fund firm, this new fund has the following characteristics:
It is simple to comprehend because it is a passive fund.
It is less expensive than actively managed funds.
It can provide considerable Alpha above Nifty 50 & Nifty 100.
It has no biases because it is based on an index
It is appropriate for investors seeking long-term capital growth.
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