Select an indexed mutual fund of your choice (www.morningstar.com)or/and go on t

Question

Select an indexed mutual fund of your choice (www.morningstar.com)or/and go on the website of the company that manages the fund, or any other source.

Precisely describe the fund’s strategy and performance (Check the fund’s summary prospectus)

-What stock index is the fund indexed again?

-Which sectors or markets is the fund mostly invested in? (show % invested)

-What fees does the fund charge? (indicate numbers)

-What is the fund’s return rate compared to either its benchmark or other funds with similar strategies? Year-to-date and over the last 5 years?

-In your opinion, is the manager of the mutual fund successfully indexing his fund against the selected stock index? Why or why not?

Explanation / Answer

Fund name: Kotak Nifty ETF

Index benchmark: CNX Nifty

This fund is mostly invested in banking sector. 27.32% of the fund is invested in banking sector as of 30th June 2018 . The next higher pecenperce was invested in software sector (12%).

Expense of the fund is 0.10%

Funds return rate: 14.4%

Category return rate: 11.1%

Benchmark return: 12.9%

Return over last five years: 44.4% (rates are annualised)

The investment objective of this fund is to give returns which is closely corresponding to S&P CNX Nifty. As this fund is giving returns corresponding to the index, it is successfully indexing against the selected stock index.

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