The Kotak Nifty Alpha 50 ETF is an open-ended exchange-traded fund (ETF) managed by Kotak Mahindra Mutual Fund. Its primary objective is to replicate the composition of the NIFTY Alpha 50 Index, aiming to generate returns that correspond with the performance of this index, subject to tracking errors.
What Is The Share Price Of The Kotak Nifty Alpha 50 ETF?
As of December 24, 2024, the Kotak Nifty Alpha 50 ETF has a Net Asset Value (NAV) of ₹54.1929 per unit.
On December 13, 2024, the ETF closed at ₹56.53, with a day’s trading range between ₹55.62 and ₹56.99.
Key Details:
- Launch Date: December 22, 2021
- Assets Under Management (AUM): ₹439.189 crore (as of September 30, 2024)
Performance:
- 1-Year Return: 33.90%
- Since Inception (Annualized): 16.75%
Top Holdings:
- Cochin Shipyard: 3.62%
- Rail Vikas Nigam: 3.50%
- Trent: 3.45%
- Oil India: 3.39%
- BSE: 3.38%
Market Capitalization Exposure:
- Giant Cap: 19.41%
- Large Cap: 46.22%
- Mid Cap: 34.36%
Investment Strategy:
The fund seeks to mirror the NIFTY Alpha 50 Index, which comprises 50 stocks with high alpha, indicating strong performance potential. This strategy aims for higher risk-adjusted returns by focusing on companies that have demonstrated superior performance relative to the broader market.
Suitability:
This ETF is suitable for investors with a high-risk tolerance seeking exposure to a diversified portfolio of high-alpha stocks. Given its very high-risk classification, it is recommended for those with a long-term investment horizon who are prepared for potential market volatility.
Taxation:
- Long-Term Capital Gains (LTCG): Gains over ₹1.25 lakh in a financial year are taxed at 12.5%.
- Short-Term Capital Gains (STCG): Taxed at 20% if units are sold within one year.
- Dividends: Added to the investor’s income and taxed as per their respective tax slabs.
Best Nifty Alpha 50 ETF
As of December 2024, the Kotak Nifty Alpha 50 ETF is the primary exchange-traded fund (ETF) in India that tracks the NIFTY Alpha 50 Index. This index comprises 50 stocks with high alpha, indicating strong performance potential relative to the broader market.
Key Features of Kotak Nifty Alpha 50 ETF:
- Fund House: Kotak Mahindra Mutual Fund
- Launch Date: December 22, 2021
- Assets Under Management (AUM): ₹439.19 crore (as of September 30, 2024)
- Net Asset Value (NAV): ₹54.19 (as of December 24, 2024)
- Expense Ratio: 0.30% (as of November 30, 2024)
- 1-Year Return: 33.90%
- Since Inception Return: 16.75% annualized
- Risk Level: Very High
Investment Considerations:
- High Risk: The ETF focuses on high-alpha stocks, which can exhibit significant volatility.
- Long-Term Horizon: Suitable for investors with a long-term investment horizon, typically five years or more.
- Diversification: Provides exposure to a diversified portfolio of 50 high-alpha stocks.
Kotak Nifty Alpha 50 ETF direct Growth
The Kotak Nifty Alpha 50 ETF – Direct Growth is a variant of the Kotak Nifty Alpha 50 ETF designed for investors seeking long-term capital appreciation through exposure to high-alpha stocks in the NIFTY Alpha 50 Index.
Key Features of Kotak Nifty Alpha 50 ETF – Direct Growth:
Fund Type:
- Open-ended Exchange Traded Fund (ETF).
Objective:
- The primary objective is to replicate the performance of the NIFTY Alpha 50 Index and deliver returns aligned with it, subject to tracking error.
Growth Plan:
- Under the Growth Plan, the fund reinvests earnings and dividends into the fund instead of distributing them to unitholders. This allows the investment to grow over time through compounding.
Performance Details:
- Net Asset Value (NAV): The NAV changes daily based on market movements.
- Returns: Similar to the broader ETF, returns depend on the performance of the NIFTY Alpha 50 Index.
Investment Details:
- Minimum Investment: Generally, the ETF requires investments to be in multiples of units, with a minimum of one unit on stock exchanges.
- Expense Ratio: Approximately 0.30%, among the lowest compared to actively managed funds.
Kotak Nifty Alpha 50 ETF Returns
Here is the return data for Kotak Nifty Alpha 50 ETF as of the latest available information:
| Period | Returns (%) | Benchmark (NIFTY Alpha 50) |
| 1 Month | 2.47 | 2.50 |
| 3 Months | 11.65 | 11.80 |
| 6 Months | 18.90 | 19.05 |
| 1 Year | 33.90 | 34.10 |
| Since Inception | 16.75 (Annualized) | N/A |
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