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Kotak Mahindra Asset Management Company has launched India’s first-ever Nifty Alpha 50 Exchange Traded Fund, an open-ended scheme that will track Nifty Alpha 50 index and allow investors to invest in a well-diversified portfolio of stocks with high Alphas.
The NFO will be open for subscription till December 15.
Alpha, also referred to as ‘excess return’, is a term that measures the return earned by a stock above or below demanded by the market for its risk class.
Kotak's Nifty Alpha 50 ETF will track the performance of 50 stocks listed with NSE with high Alpha’s in the last one year.
As per the criteria, these companies are selected from the top 300 companies by average free-float market capitalisation and average daily turnover for the last six months.
Nilesh Shah, Managing Director, Kotak Mahindra AMC, said the new ETF has been launched when the market had cooled down and valuations had eased.
The diversified stocks in the ETF will be based on Kotak's well-defined strategy that will benefit investors over the long term, he said.
It can also be used as a tool to balance investors’ active portfolios.
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