Kotak Mahindra AMC launches Kotak S&P BSE Housing Index Fund; here is what you should know

Kotak Mahindra Asset Management Company Ltd announced the launch of the Kotak S&P BSE Housing Index Fund, an open-ended scheme replicating/tracking the S&P BSE Housing Index.

S&P BSE Housing Index invests in companies related to the housing theme. This index diligently measures the performance of common stocks within the S&P BSE 250 Large Midcap Index, categorized as part of the eligible common India Industry Classification.

Constituents are weighted by float-adjusted market capitalization, subject to a single % constituent weight cap of 5 per cent. By closely replicating this index, the Kotak S&P BSE Housing Index Fund extends diverse investment opportunities to its investors linked to the housing sector. The fund presents a cost-effective and transparent approach to capitalize on the housing theme within the Indian stock market, as per the Kotak Mahindra AMC press release.

Nilesh Shah, Managing Director of KMAMC, said, “At Kotak Mutual Fund, our relentless pursuit is to offer our investors a wide array of investment solutions. The introduction of the Kotak S&P BSE Housing Index Fund exemplifies our dedication to providing products that cater to diverse risk appetites and investment horizons. This fund presents a unique opportunity for investors looking to capitalize on the potential growth in the housing sector and businesses that can benefit from the real estate boom. By launching this thematic index fund, we bolster our range of passive fund offerings, enhancing our overall portfolio of investment options.”

The scheme opens for public subscription on August 07, 2023, and closes on August 21, 2023. Investors may consult their financial experts before making any investment decision.

Devender Singhal, EVP & Fund Manager, Kotak Mahindra Asset Management Company Ltd., said, “The launch of the Kotak S&P BSE Housing Index Fund is in harmony with our steadfast dedication to providing a range of products tailored to suit various risk appetites and investment timeframes. This fund presents a compelling prospect for investors seeking to capitalize on the housing sector and enterprises that benefit from the expansion in the real estate domain. By introducing this thematic index fund, we intend to fortify our comprehensive array of passive fund offerings, thus bestowing upon investors many empowering opportunities.”