Kotak Mahindra launches exchange trade fund

Chennai, May 7 (UNI) Kotak Mahindra Asset Management Company today announced the launch of an exchange traded fund focusing on investment in the stocks that comprise the BSE Sensex.

The Investment objective of the scheme was to provide returns that closely correspond to the total returns of the BSE Sensex, subject to tracking errors, a company release here said.

The scheme's performance would be benchmarked against BSE Sensex. The fund was open for subscription from May seven to May 16.

According to the details of the scheme purchased during NFO, the minimum investment amount during the new fund offer was Rs 10,000 and in multiples of Rs 1,000 and in case of investors opting to switch over to the schme from the existing schemes/plan/ options of the fund during the NFO period, the minimum amount was Rs 10,000 and in multiples of Re 0.01 thereof.

Ongoing purchases directly from the Mutual Fund would be rstricted to authorised participants, provided the value of units to be purchased was in creation unit size.

Authorised participants may buy the units on any business day of the scheme directly from the mutual fund by paying applicable transaction handling charges and cash component in cash and by depositing basket of securities comprising BSE Sensex.

Units may be allotted only after realisation of cheque where full consideration of creation unit was paid by cheque and at the value at which the underlying stocks for the creation unit was purchased against the purchase request.

The units would be listed on BSE to provide liquidity through secondary market. All categories of investors may purchase the units through secondary market on any trading day.

The AMC would appoint authorised participants to provide liquidity in secondary market on an ongoing basis. The authorised participants would offer daily two-way quote in the market, the release added.

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