Speaking at the occasion, Mr. Sandesh Kirkire, Chief Executive Officer, Kotak Mahindra Asset Management Company said, "Our endeavor has been to provide diverse investment options to cater the requirement of our investors. Kotak Sensex ETF is one such product, which enables a long-term investment strategy at significantly lower costs. SENSEX is a very widely tracked index and is a representative of the Indian economic growth story. Kotak Sensex ETF offers investors to partake in the same."
Announcing the launch, Bombay Stock Exchange Managing Director and CEO, Mr. Rajnikant Patel commented: "Since its corporatisation and demutualisation, BSE has launched several initiatives for the investing community. The Kotak Sensex ETF is the latest such offering. Sensex is the flagship index of the Indian capital markets and the Kotak Sensex ETF represents an easy, liquid and effective instrument to track the index. We are happy to have Kotak Mutual Fund as partners in this endeavor. I am sure the ETF will be well received by both retail as well as institutional investors."
Fund Snapshot:
NFO Opens: 7th May 2008
NFO Closes: 16th May 2008
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Details of the Scheme Purchases During NFO: The minimum investment amount during the New Fund Offer is Rs.10,000 and in multiples of RS. 1000. In case of investors opting to switch into the Scheme from existing Schemes/Plan/Options of the Fund during the NFO period, the minimum amount is Rs. 10000 and in multiples of Re. 0.01 thereof.
On going purchases directly from the Mutual Fund would be restricted to Authorized Participants provided the value of units to be purchased is 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 realization of cheque where the full consideration for creation unit is paid by cheque and at the value at which the underlying stocks for the creation unit is purchased against that 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 will appoint Authorised Participant(s) to provide liquidity in secondary market on an ongoing basis. The Authorised Participant(s) would offer daily two-way quote in the market. Each unit of the Kotak Sensex ETF will be approximately equal to 1/100th of the value of BSE SENSEX
Entry Load during NFO: For investments < Rs 1crore