Kotak Sensex ETF MF

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Kotak Sensex ETF

  • Open Ended Exchange Traded Fund

  • Mirrors the BSE Sensex closely

  • Highly liquid investment

Want to invest in Kotak Sensex ETF?

What is Kotak Sensex ETF?

An ETF means an Exchange Traded Fund. The Kotak Sensex ETF is an exchange traded fund that explores a passive investment strategy by providing returns in proportion to the index. The investment objective of the scheme is to provide returns that closely correspond to the total returns of the BSE SENSEX subject to tracking errors. Listed on the BSE itself, these funds are also highly liquid and can be traded on the secondary market.

Allotment Date: Dec 29, 2009 Fund Corpus: Rs 660.27 Crores

Advantages of Kotak Sensex ETF


See Kotak Sensex ETF Features

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What is the objective of Kotak Sensex ETF?

The investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of the BSE SENSEX subject to tracking errors.
To whom this scheme is suitable for?
    Investors who:
  1. Believe that the market as a whole is more efficient than the individuals who are a part of it and hence, it is difficult to outperform the market.
  2. Believe in investing in mutual fund schemes that follow a passive investment strategy.
In which companies the Fund Manager will invest the money?

The scheme will invest in the stocks that comprise the BSE Sensex and in the same proportion as in the index.
What is the face value of one unit?

The face value of each unit will be Rs. 10 per unit. On allotment value of each unit will be approximately equal to 1/100th of the value of BSE Sensex.
How to Buy & Sell the units of Kotak Sensex ETF ?

From Secondary Market: Units of Kotak Sensex ETF are traded in the Bombay Stock Exchange. The ISIN corresponding to these units is INF373I01031. Trading shall be in the Normal Market Segment - Compulsory Demat (Rolling Settlement) for all investors. You can buy & sell units through your broker or online trading platform provided by the brokers (E Broking facility) registered with the Bombay Stock Exchange Ltd.

From Kotak Mutual fund :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 at applicable NAV, and transaction charges by depositing basket of securities comprising BSE Sensex.

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.

Creation Unit is fixed number of units of the Scheme, which is exchanged for a basket of securities underlying the index called the Portfolio Deposit and a Cash Component equal to the value of 10,000 units of the Scheme.

For redemption of units it is vice versa i.e. fixed number of units of Scheme are exchanged for Portfolio Deposit and Cash Component. The Portfolio Deposit and Cash Component will change from time to time.

The creation unit size may be changed by the AMC at their discretion and the notice of the same shall be published on AMC’s internet site.
How will I know the appropriate price to transact in the secondary market ?

KMAMC endeavours to provide an indicative NAV in our website. The investors may use the same to transact in the market.
What are the loads applicable for this scheme ?

The Entry and Exit load is NIL
What are the other charges applicable during the buy or sell in the continuous offer?

Investor will have to bear the cost of brokerage and other applicable statutory the stock exchange levies eg, Securities Transaction Tax, etc when the units are bought or sold on the stock exchange.
What are the tax implications in this scheme?

No TDS on redemption irrespective of amount redeemed, for unitholders resident in India. Investments in the Scheme are exempt from Wealth tax.

If the unit is held for 12 months or less, the resultant gain if any, is treated as short term capital gains, currently taxed at the rate of 10%.

Long Term capital gain arising from the sale of a unit of an equity oriented fund is exempt from tax. However, at the time of redemption, the unitholder will have to pay Securities Transaction Tax (STT) of 0.25% of the value of redemption

Dividends received under the scheme are exempt from Income Tax in the hands of investors.


Fund Managers

Steps to buy Kotak Sensex ETF with BSE Broker

  1. Open a trading & demat account with a affiliated with Bombay Stock Exchange broker (in case you don’t have an existing one)
  2. To purchase Kotak Sensex ETF units place an order with your broker. BSE symbol for Kotak Sensex ETF is “KTKSENSEX” & ISIN Code of BSE for KTKSENSEX is INF373I01031
  3. Broker executes the order on the BSE terminal.
  4. Broker confirms the order to the client and issues Contract Note for the trade.
  5. Client issues the Demat instructions and the Cheques for the purchase consideration. (in case of DP & Broker are different)
  6. Units Credited to the demat account of the client on Trade date + 2nd day

    7. Similar process applies for sale transactions.

Steps to buy Kotak Sensex ETF with Online trading

  1. Open a online trading & demat account with BSE broker (in case you don’t have an existing one)
  2. Log on to the web site of online trading account by using the login ID & password. Some of the brokers which provide online trading are kotaksec.com, icicidirect.com, hdfcsec.com etc.
  3. Place the buy order for the purchase of specified number of Kotak Sensex ETF Units (The code for inputting the purchase/sale of Kotak Sensex ETF Units has to be ascertained from broker with whom the client is registered for online trading.)
  4. Web system debits the bank account (Fund transfer through linked savings account) and credits the client's demat account with the Units on Trade date + 2nd day

    5. Similar process applies for sale transactions.

Want to buy other Kotak Mutual Fund schemes online?

If you are an existing Kotak Mutual Fund investor, click here to invest online

If you are a new investor, make your first transaction through a Mutual Fund distributor first. Then, follow these steps to generate your PIN:

1. Apply for PIN to start your online transaction. Click here for the Pin Request Form.
2. Submit the Pin Request form at:
a.  any of the Kotak Mutual Fund branches (click here to view list of branches) OR
b.  any of the CAMS Investor Service Centers.
3. Now transact online with your folio number and your newly generated Pin number