The Kotak Mahindra Asset Management Company on Monday launched the Kotak Nifty Commodities Index Fund, an open-ended scheme that tracks the Nifty Commodities Index. The scheme will be open for public subscription from February 17 to March 3, 2025. Exposure to 30 top commodity-driven companies The fund provides investors with an opportunity to invest in 30 companies engaged in commodity-driven businesses by tracking the Nifty Commodities Index. This index comprises some of India’s most established companies across key sectors, including, oil, metals, mining, cement, power, and chemicals that play a crucial role in the country’s economic expansion, according to the fund house. Market insights As per the fund house, investing in this index offers an efficient entry point for investors to participate in India’s long-term growth story, while also leveraging global supply-demand shifts that influence commodity cycles and pricing trends. Nilesh Shah, managing director of Kotak AMC, stated in a press release: “Commodities play a vital role in economic cycles and industrial expansion. With India’s strong infrastructure push and demand for key resources, the Kotak Nifty Commodities Index Fund provides a structured approach for investors to gain exposure to this growth segment. The fund is designed for those looking to diversify their portfolio with commodity-driven equities at a relatively lower cost.” Devender Singhal, executive vice president and fund manager, KMAMC, added: “This fund provides broad exposure to multiple commodity sectors, leveraging long-term trends in industrial growth, infrastructure spending, and global supply-demand shifts. While large-cap stocks anchor the index with established industry leaders, mid-cap players add growth potential.” About the fund For detailed information, buyers can refer to the Scheme Information Document (SID) of Kotak Nifty Commodities Index Fund or visit www.kotakmf.com. Equity MFs see robust inflows despite market volatility In its January report, the Association of Mutual Funds in India (AMFI), an industry body, noted that equity mutual fund inflows stood at nearly ₹40,000 crore for the month. The February 12 AMFI report showed that equity mutual fund inflows stood at ₹39,687.78 crore in January, marginally lower by 3.6% from December, despite selling pressure in the markets. Additionally, among the equity funds, smallcaps saw a 22.6% surge in inflows at ₹5,720.87 crore, marking an all-time high. Midcaps inflows also hit a record at ₹5,147.87 crore. Likewise, largecaps’ net investments rose by 52.3% to ₹3,063.33 crore, the second-highest level recorded. AMFI noted that despite concerns over market corrections, investors have funneled close to ₹35,000 crore into active smallcap funds in 2024—nearly double the inflows into largecap funds. However, a sustained decline in equities led to negative SIP returns for many smallcap funds in recent months, raising investor concerns. Disclaimer Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully before investing. Past performance may or may not be sustained in the future. Hence, investors are advised to consult their financial expert before making any investment decisions.Original Article