Kotak Mahindra Asset Management Company Limited (Kotak Mahindra Mutual Fund) today announced the launch of India’s first ever Nifty Alpha 50 ETF, Kotak Nifty Alpha 50 ETF. It is an open-ended scheme that will track Nifty Alpha 50 index and gives investors an opportunity to invest in a well-diversified portfolio of stocks with high Alphas.
It can also be used as a tool to balance investors’ active portfolios. 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 top 300 companies by average free-float market capitalization and average daily turnover for the last six months.
Nilesh Shah, Group President and Managing Director, Kotak Mahindra Asset Management Co. Ltd. said, “Our decision to launch Kotak Nifty Alpha 50 ETF comes at a time when the market has cooled down and valuations have eased. The diversified stocks in the ETF will be based on Kotak's well-defined strategy that will benefit investors over the long term”.