Kotak MF filed draft documents with the securities market regulator, SEBI on June 27 to launch Nifty Smallcap 50 Index Fund.
According to the Draft Scheme Information Document or SID, this scheme is labeled ‘Very High Risk’ on the riskometer. The scheme will be the benchmark for the Nifty Smallcap 50 Total Return Index and will allocate 95-100% of its assets to the constituents of the Nifty Smallcap 50 Index and up to 5% to debt and money market instruments.
Nifty Smallcap 50 Index reflects the movement of the small cap segment of the market and was launched on 1st April 2016. It represents the top 50 companies selected based on the average daily turnover of the top 100 companies selected by absolute market capitalization. Nifty Smallcap 250 Index. The index represents approximately 2% of the free float market capitalization of the stocks listed on NSE as on March 29, 2019.
As of May 31, 2022, the top five sectors represented in the index were financial services (34% weight), information technology (17%), chemicals (9%), telecommunications (6%) and consumer durables (5%). By stock weighting, the top holdings were Central Depository Services India (5%), KPIT Technologies (4%), PVR (3.9%), Computer Age Management Services (3.7%) and Multi Commodity Exchange of India (3.4%). Nifty Smallcap 50 TRI has given 9.9% return since its inception. The index has given a return of -8.3% in the last one year.
Currently, Kotak MF is offering the following open-ended equity and debt index funds – Nifty 50 Index Fund, Nifty Next 50 Index Fund, Nifty SDL Plus PSU Bond Apr 2032 60:40 Index Fund and Nifty SDL Plus PSU Bond Apr 2027 60:40 Index Fund.
Other mutual fund AMCs like Aditya Birla Sun Life Mutual Fund and Axis Mutual Fund currently offer Nifty Smallcap 50 Index Fund.