Kotak Nifty Next 50 Index Fund - NFO Opens: 17th February 2021 NFO Closes: 24th February 2021 - Kotak Mutual Fund
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Kotak Nifty Next 50 Index Fund
An open ended scheme replicating/tracking Nifty Next 50 Index
NFO Opens: 17th February 2021 NFO Closes: 24th February 2021
1
FROM GULLY CRICKET TEAM INDIA NIFTY 50 FROM MICROCAP
TO TEAM INDIA Leaders with STOCKS TO NIFTY 50
steady growth
U-19 + BENCH On fast track to success NIFTY NEXT 50
– potential superstars
RANJI TROPHY First step to success – many compete, MIDCAP STOCKS
few would leave a mark
A lot of competition- few survivors MICRO AND SMALL
GULLY CRICKET
CAP STOCKS
The cricket analogy is used as a paradigm for selection process.
Nifty Next 50: Captures potential blue chips of tomorrow
Stocks in the current NIFTY 50 that moved from NIFTY Next 50 in the last decade
Name Moved in Name Moved in
Kotak Mahindra Bank Ltd. 2010 Indian Oil Corporation Ltd. 2017
Bajaj Auto Ltd. 2010 Bajaj Finance Ltd. 2017
Dr. Reddy's Laboratories Ltd. 2010 UPL Ltd. 2017
Grasim Industries Ltd. 2010 Titan Company Ltd. 2018
Grasim Industries Ltd. 2011 Bajaj Finserv Ltd. 2018
Coal India Ltd. 2011 JSW Steel Ltd. 2018
Asian Paints Ltd. 2012 Britannia Industries Ltd. 2019
UltraTech Cement Ltd. 2012 Shree Cement Ltd. 2020
IndusInd Bank Ltd. 2013 HDFC Life Insurance Company Ltd. 2020
Tech Mahindra Ltd. 2014 Divi's Laboratories Ltd. 2020
Adani Ports and Special Economic Zone Ltd. 2015 SBI Life Insurance Company Ltd. 2020
Eicher Motors Ltd. 2016
Source: NSE, as on Jan 31, 2021 3Nifty Next 50 portfolio is more diversified as compared to Nifty 50
Sector Distribution – Financial Services
38.1
Nifty 50 Nifty Next 50
Nifty 50
29.14
2%
2%2%2% HDFC Bank Ltd.
5%
27%
19.55
6% Housing Development
17.13
Finance Corporation Ltd.
7% ICICI Bank Ltd.
12.46
11.05
12
Kotak Mahindra Bank
5.91
5.86
5.85
6.6
11% Ltd.
3.54
3.47
3.43
3.36
3.26
3.01
2.87
2.46
2.39
2.26
2.26
1.87
1.54
Axis Bank Ltd.
0.63
19%
0
17% Bajaj Finance Ltd.
FINANCIAL
C H EM I C A L S
IT
C ON S U M ER
A U TOMOB I L E
S ER V I C ES
PHARMA
P R OD U C TS
M ETA L S
OI L & G A S
TEL EC OM
P OW ER
OTH ER S
C EM EN T &
S ER V I C ES
C EM EN T
G OOD S
Nifty Next 50
5%2% ICICI Lombard General
5% 16%
Insurance Company Ltd.
7% Bandhan Bank Ltd.
7% 12% ICICI Prudential Life
Nifty Next 50 sector distribution is more diversified than Nifty 50. Insurance Company Ltd.
Within financial services sector as well, Nifty Next 50 portfolio is 8% Bajaj Holdings &
11% Investment Ltd.
more diversified than that of Nifty 50. 9% Piramal Enterprises Ltd.
9% 9%
HDFC Asset Management
Company Ltd.
Source: NSE, as on Jan 31, 2021 4Nifty Next 50 Index has shown return potential similar
or better to Nifty Midcap 150 index with lesser risk
60000
Maximum
Nifty Next Nifty Midcap
50000 drawdown in a Difference
50 150
calendar year
40000
2010 -23.31% -31.99% 8.68%
2011 -38.11% -41.62% 3.51%
30000
2012 -37.99% -41.24% 3.25%
20000 2013 -22.20% -32.48% 10.28%
2014 -10.34% -20.87% 10.53%
10000 2015 -12.13% -11.92% -0.21%
2016 -20.97% -18.45% -2.53%
0
2017 -8.98% -10.01% 1.03%
01-Oct-08
01-Oct-15
01-Jan-07
01-Jan-14
01-Mar-08
01-Feb-11
01-Sep-11
01-Mar-15
01-Feb-18
01-Sep-18
01-Jan-21
01-Nov-05
01-Nov-12
01-Nov-19
01-May-16
01-Jun-06
01-May-09
01-Jun-13
01-Jun-20
01-Apr-05
01-Jul-10
01-Apr-12
01-Jul-17
01-Apr-19
01-Aug-07
01-Dec-09
01-Aug-14
01-Dec-16 2018 -19.78% -23.50% 3.72%
2019 -19.68% -24.42% 4.74%
Nifty Next 50 - TRI Nifty Midcap 150 - TRI (Normalized) 2020 -40.36% -43.06% 2.70%
Source: NSE, as on Jan 31, 2021 5Nifty Next 50: 3 year rolling returns
3 YEAR ROLLING RETURNS
Period Average returns Standard deviation
Nifty 50 Nifty Next 50 Nifty Midcap 150 Nifty 50 Nifty Next 50 Nifty Midcap 150
12 year 10.42% 13.84% 13.21% 5.77% 9.99% 11.07%
10 year 10.96% 14.79% 14.64% 5.71% 9.95% 10.96%
7 year 12.02% 16.05% 17.05% 4.67% 8.88% 9.82%
5 year 10.74% 14.12% 15.49% 3.87% 8.70% 10.10%
3 year 10.26% 8.80% 9.08% 4.49% 6.76% 7.18%
1 year 6.03% 0.48% 0.76% 4.06% 3.01% 4.15%
In last 12 years, Nifty Next 50 has outperformed Nifty 50 on 71% of trading days and
Nifty Midcap 150 on 57% of the trading days with lesser risk*
* On the basis of 3-year rolling return. 12 years include time period from 1st February 2009 to 31st January 2021. Source: NSE, as on Jan 31, 2021.
This is just the index performance and has got nothing to do with futuristic performance of the scheme. Also past performance may or may not be
sustained in future 6Why Nifty Next 50 Index Fund?
Low cost as
Easy to Convenient compared to
understand to invest actively Well diversified large cap index
managed funds with the potential to give
superior returns with relatively
No biases as lesser risk
Low risk it is tracking Transparency
an index
Though it has underperformed
Nifty 50 in the last 2-3 years, it
A strategy to has displayed long term
Performance
balance investor’s outperformance
potential
active portfolio
7Nifty Next 50 Universe
Stock Sector Stock Sector
ACC Ltd. Cement & Cement Products ICICI Lombard General Insurance Company Ltd. Financial Services
Abbott India Ltd. Pharmaceuticals ICICI Prudential Life Insurance Company Ltd. Financial Services
Adani Green Energy Ltd. Power Indraprastha Gas Ltd. Oil & Gas
Adani Transmission Ltd. Power Indus Towers Ltd. Telecom
Alkem Laboratories Ltd. Pharmaceuticals Info Edge (India) Ltd. IT
Ambuja Cements Ltd. Cement & Cement Products InterGlobe Aviation Ltd. Services
Aurobindo Pharma Ltd. Pharmaceuticals Larsen & Toubro Infotech Ltd. IT
Avenue Supermarts Ltd. Consumer Goods Lupin Ltd. Pharmaceuticals
Bajaj Holdings & Investment Ltd. Financial Services Marico Ltd. Consumer Goods
Bandhan Bank Ltd. Financial Services Motherson Sumi Systems Ltd. Automobile
Bank of Baroda Financial Services Muthoot Finance Ltd. Financial Services
Berger Paints India Ltd. Consumer Goods NMDC Ltd. Metals
Biocon Ltd. Pharmaceuticals Oracle Financial Services Software Ltd. IT
Bosch Ltd. Automobile Petronet LNG Ltd. Oil & Gas
Cadila Healthcare Ltd. Pharmaceuticals Pidilite Industries Ltd. Chemicals
Colgate Palmolive (India) Ltd. Consumer Goods Piramal Enterprises Ltd. Financial Services
Container Corporation of India Ltd. Services Power Finance Corporation Ltd. Financial Services
DLF Ltd. Construction Procter & Gamble Hygiene & Health Care Ltd. Consumer Goods
Dabur India Ltd. Consumer Goods Punjab National Bank Financial Services
General Insurance Corporation of India Financial Services SBI Cards and Payment Services Ltd. Financial Services
Godrej Consumer Products Ltd. Consumer Goods Siemens Ltd. Industrial Manufacturing
HDFC Asset Management Company Ltd. Financial Services Tata Consumer Products Ltd. Consumer Goods
Havells India Ltd. Consumer Goods Torrent Pharmaceuticals Ltd. Pharmaceuticals
Hindustan Petroleum Corporation Ltd. Oil & Gas United Breweries Ltd. Consumer Goods
Hindustan Zinc Ltd. Metals United Spirits Ltd. Consumer Goods
8
Source: NSE, as on Jan 31, 2021Kotak Nifty Next 50 Index Fund–
Scheme Features
23Scheme Features
Name of the Scheme Kotak Nifty Next 50 Index Fund
Type of scheme An open ended scheme replicating/tracking the NIFTY Next 50 Index
The investment objective of the scheme is to replicate the composition of the Nifty Next 50 and
to generate returns that are commensurate with the performance of the NIFTY Next 50 Index,
Investment Objective subject to tracking errors.
However, there is no assurance that the objective of the scheme will be realized.
Benchmark Nifty Next 50 Index TRI (Total Return Index)
Fund Manager Mr. Devender Singhal and Mr. Satish Dondapati
24Scheme Features
Minimum Investment Size:
Initial Purchase (Non- SIP) Rs. 5000/- and in multiples of Rs. 1 for purchases, and Re 0.01 for
switches
Minimum amount for Additional Purchase (Non- SIP) Rs. 1000/- and in multiples of Rs. 1 for purchases, and Re 0.01 for
purchase/redemption/switches switches.
(Direct Plan & Regular Plan)
Minimum Redemption Size:
In Rupees Rs. 1000/-
In Units 100 units
Entry Load: NIL
In terms of SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no entry load
will be charged on purchase / additional purchase / switch-in. The commission as specified in
Load Structure (During NFO and
the aforesaid circular, if any, on investment made by the investor shall be paid by the investor
continuous offer)
directly to the Distributor, based on his assessment of various factors including the service
rendered by the Distributor.
Exit load: NIL
A) Regular Plan B) Direct Plan
Available Plans/Options
Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans)
SIP Rs. 1000/- (Subject to a minimum of 6 SIP installments of Rs. 1000/- each)
11Riskometer
Kotak Nifty Next 50 Index Fund
This product is suitable for investors who
are seeking*
Long term capital growth
Returns that are commensurate with the
performance of NIFTY Next 50 Index,
subject to tracking error.
*Investors should consult their financial advisors if in doubt
about whether the product is suitable for them
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related
documents carefully.
28Thank You
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