Kotak Mahindra Mutual Fund Launches Nifty 200 Momentum 30 ETF on September 22, 2025

Kotak Mahindra Mutual Fund has launched a new open-ended Exchange Traded Fund (ETF) named the Kotak Nifty 200 Momentum 30 ETF. This NFO is designed to track the Nifty 200 Momentum 30 Index, which selects 30 companies from the Nifty 200 that score high on momentum factors. Investors can participate in the scheme between September 22, 2025 and 6 October 2025. Being an open-ended ETF, it will be available for continuous trading on the stock exchange after listing. The fund carries a “Very High” risk rating as per SEBI’s riskometer, requires a minimum investment of ₹5,000, and charges no exit load. The objective of the NFO is to generate returns closely aligned with the Nifty 200 Momentum 30 Index, subject to tracking error.

Key Features of Kotak Nifty 200 Momentum 30 ETF

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• Opening Date: September 22, 2025
• Closing Date: October 6, 2025
• Exit Load: Nil
• Minimum Investment Amount: ₹5,000

Objective of Kotak Nifty 200 Momentum 30 ETF

The objective of the Kotak Nifty 200 Momentum 30 ETF is to provide returns that correspond to the performance of the Nifty 200 Momentum 30 Index. This is achieved by investing in 30 companies from the Nifty 200 that rank high on momentum factors, subject to tracking error.

Investment Strategy of Kotak Nifty 200 Momentum 30 ETF

• The fund follows a passive investment style by replicating the Nifty 200 Momentum 30 Index.
• It will invest in 30 companies from the Nifty 200 universe that display high momentum scores.
• The index is rebalanced periodically, ensuring the portfolio reflects current momentum trends.
• As an open-ended ETF, it provides continuous market access for investors post-listing.

Risks Associated with Kotak Nifty 200 Momentum 30 ETF

• Market Risk: Being equity-focused, the fund is exposed to market volatility and price fluctuations.
• Concentration Risk: The portfolio is limited to 30 stocks, which may lead to higher exposure to certain sectors.
• Tracking Error Risk: Returns may deviate from the benchmark index due to transaction costs or operational factors.
• Momentum Risk: Momentum strategies may underperform in sideways or volatile markets.

Risk Mitigation Strategy by Kotak Nifty 200 Momentum 30 ETF

The Kotak Nifty 200 Momentum 30 ETF manages risk by passively replicating the Nifty 200 Momentum 30 Index, thereby ensuring transparency and a rules-based approach. Regular rebalancing of the index helps capture stocks with sustained momentum while reducing exposure to underperformers. Additionally, as an ETF, it allows investors to diversify cost-effectively while keeping expenses relatively low. Although classified as “Very High” risk, the strategy ensures discipline by strictly following index-driven stock selection, thus minimising fund manager bias.

What Type of Investor Should Invest in Kotak Nifty 200 Momentum 30 ETF?

• Investors seeking long-term capital appreciation through equity markets.
• Those comfortable with very high risk exposure.
• Investors looking for passive investing options with lower costs.
• Market participants aiming to benefit from momentum-driven strategies.

Where Will the Kotak Nifty 200 Momentum 30 ETF Invest?

• The Kotak Nifty 200 Momentum 30 ETF will invest in 30 momentum-based companies selected from the Nifty 200 Index.
• Allocation will primarily be in large and mid-cap stocks across sectors.
• Investments will replicate the Nifty 200 Momentum 30 TRI composition.
• Exposure will remain equity-focused with no debt or hybrid allocation.