Kotak's Nifty Top 10 Equal Weight Index Fund: Here's all you need to know

Kotak Nifty Top 10 Equal Weight Index Fund opened for subscription on April 7, 2025, and will close on April 21, 2025

Kotak Nifty Top 10 Equal Weight Index Fund: Kotak Mahindra Asset Management Company (KMAMC) has launched its Kotak Nifty Top 10 Equal Weight Index Fund, an open-ended scheme tracking the Nifty Top 10 Equal Weight Index. The scheme opened for subscription on April 7, 2025, and will close on April 21, 2025.  

The scheme's performance is measured against the Nifty Top 10 Equal Weight Index (Total Return Index).Tracking errors are inherent in any index fund. According to the riskometer, the principal invested in the scheme will be at very high risk.   The Index aims to track the performance of the top 10 stocks selected based on the six-month average free-float market capitalisation of the Nifty50. The scheme follows a passive investment strategy to achieve the investment objective. 

Investors can invest a minimum amount of ₹100 and any amount thereafter. According to the SID, no exit load will be charged on redemption or switch out from the scheme. The minimum redemption amount for all plans will be ₹100 or account balance, whichever is lower. 

 

The investment objective of the Kotak Nifty Top 10 Equal Weight Index Fund is to provide returns that, before expenses, correspond to the total returns of the securities as represented by the underlying index, subject to tracking errors, according to the Scheme Information Document (SID). "However, there is no guarantee or assurance that the investment objective of the scheme will be achieved."

 

  Devender Singhal and Satish Dondapati serve as the designated fund managers for the scheme. Abhishek Bisen acts as the fund manager for debt securities of the scheme.  

 "Historically, the Nifty Top 10 Equal Weight Index has seen lower drawdowns compared to broad-based indices, making it a potentially resilient investment choice. By reducing over-reliance on a single stock and maintaining equal allocation, this fund offers a structured, rule-based approach to long-term capital growth,” Devender Singhal, executive vice president and fund manager at KMAMC, said.  

Kotak Nifty Top 10 Equal Weight Index Fund: Who should invest?

As per the SID, Kotak Nifty Top 10 Equal Weight Index Fund is suitable for investors tracking long-term capital growth and return that corresponds to the performance of the Nifty Top 10 Equal Weight Index, subject to tracking error. "However, investors should consult their financial advisers if in doubt about whether the product is suitable for them."