The country's leading fund house Kotak Mahindra Mutual Fund has launched an Exchange Traded Fund which tracks performance of Nifty Midcap 50 index. Named as Kotak Midcap 50 ETF, is an open ended scheme that will track the Nifty Midcap 50 Index. The New Fund Offer opened today, January 6 and will close on January 20.
"The new fund offering (NFO) is benchmarked against the Nifty Midcap 50 Index (TRI), which captures the movement of the mid-cap segment of the market. Since 2004, in 11 out of 18 years, the Nifty Midcap 50 Index has performed better than both Nifty 50 and Nifty 500. Additionally, Nifty Midcap 50 has given a CAGR return of 44.9 per cent year-to-date compared to 25.6 per cent for Nifty 50 and 31.6 per cent for Nifty 500," Kotak Mutual Fund said in a press release.
The Kotak Midcap 50 ETF will replicate the Nifty Midcap 50 Index, which includes the top 50 companies based on full market capitalisation from Nifty Midcap 150 Index with preference given to those stocks on which derivative contracts are available on the National Stock Exchange. In case 50 midcap stocks do not have derivatives contract available on them then it could have less than 50 stocks in the index.
“Kotak's Midcap 50 ETF scheme is a good choice for investors looking to complement or diversify their active fund investments through passive funds. With the economy on the mend over the past one year, many midcap firms have improved their performance during this period and are expected to deliver better returns going ahead, which would augur well for investors in the medium to long term," Nilesh Shah, group president and managing director, Kotak Mahindra Asset Management said in a statement.
Shares of Future Group Surge 14% After Arbitration With Amazon Stayed 
_250_430.jpg "Sensex Falls Over 700 Points, Nifty Below 17,700 On Weak Global Cues")
