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Kotak PSU Bank ETF

Kotak PSU Bank ETF
Dividend Yearly
Equity - ETF
52-week NAV high
382.49  (As on 09-08-2018)
52-week NAV low
291.00  (As on 26-10-2018)
0.49%  (As on 28-02-2019)


1 mnth 3 mnth 6 mnth 1 yr 2 yr 3 yr 4 yr 5 yr 10 yr
Fund Returns 16.27 4.46 10.46 10.89 -2.33 9.82 -2.59 6.09 -
Scheme Details
Fund Type
Open Ended
Investment Plan
Launch Date
Nov 08, 2007
Last Dividend
Minimum Investment

Kotak Mahindra Asset Management Co. Ltd. (KMAMC) commenced its operations in December 1998. It is one of the most reputable AMCs in India and a brain-child of Kotak Mahindra Bank Ltd. (KMBL). The firm currently has close to 7.5 lakh investors across various schemes. It caters to the customers’ investment schemes via its 84 branch offices located across 80 cities in the country.

Investment Objective of Kotak PSU Bank ETF

The investment objective of Kotak PSU Bank ETF is to generate returns for the investor, such that they closely match the total returns of Nifty PSU Bank Index, subject to errors in tracking.

Key Features of Kotak PSU Bank ETF

Kotak PSU Bank ETF is nothing but trading of stocks on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Here, the designated fund manager will invest primarily in shares of firms, forming part of the Nifty PSU Bank Index in the same ratio. The plan aims at mirroring the returns generated by the Nifty PSU Bank Index as closely as possible after the expenses. The shares can be purchased or sold similar to any other equity stocks on the Bombay Stock Exchange (BSE) and/or National Stock Exchange (NSE) via a stockbroker. Any investor who is eligible to invest in equity stocks is permitted to invest in Kotak PSU Bank ETF as well.

Some of the significant features of the Kotak PSU Bank ETF are as indicated in the table below:

Type of fund

An open-ended scheme that mirrors/follow the Nifty PSU Bank index

Plans available


Options under each plan




Systematic Investment Plan


Systematic Transfer Plan


Systematic Withdrawal Plan

Not available

Investment Amount for Kotak PSU Bank ETF

The information in this section should be tabulated as shown in the example below:

Minimum application amount

  • The ongoing purchase that is made directly from the scheme will be restricted to authorised participants as long as the value of the shares that are to be purchased is in creation unit size.
  • The authorised participants can buy the shares on any given business day of the scheme directly from the scheme by paying the transaction handling costs that are applicable, the cash component in cash itself and by depositing all the securities that comprise of Nifty PSU Bank Index.
  • Shares can also be allocated if the full amount for creation unit is paid by cheque and at the value the creation units purchased against the purchase request.
  • The shares are listed on the National Stock Exchange to offer liquid funds via a secondary market. Investors of all categories can purchase the shares via a secondary market on any given business day.
  • The Asset Management Company’s authorised participant will generate liquid funds in the secondary market on a regular basis. The authorised participants will be offering a two-way quote in the market every day.

Minimum balance to be

maintained and

consequences of non-maintenance


Minimum installment for Systematic Investment Plan (SIP) [if SIP is available]


Minimum installment for Systematic Withdrawal Plan (SWP) [if SWP is available]


Entry Load


Exit Load


The minimum balance to be maintained in the scheme.

Asset Allocation for Kotak PSU Bank ETF


Indicative Allocation (Percentage of total assets)

Risk Profile

Stocks comprising Nifty PSU Bank Index*

95% to 100%

Medium to High

Cash and debt/money market


0% to 5%


*In case the equity shares are not available, are insufficient, for the purpose of rebalancing for a temporary period, etc., the equity derivatives of the index or its stocks may have to be disclosed. The total position to such equity derivatives will be limited to 10% of the scheme’s NAV.

**Investment in debt funds and debt related instruments, for the purpose of liquidity of assets, will have a residual maturity below one year. The designated investment manager will be keeping an eye on the scheme’s tracking error on a regular basis. The investment manager will seek to keep the tracking errors to the minimum possible level. Under normal conditions, the tracking errors should not exceed 2% p.a. However, there are high chances the tracking errors will change with respect to the changing market conditions.

Who can Invest in Kotak PSU Bank ETF

Individuals interested in capital growth by investing over a long period in high risk securities such as shares that comprise of the Nifty PSU Bank Index and other such securities to track the benchmark index can invest in Kotak PSU Bank ETF.

NAV Disclosure and Benchmark for Kotak PSU Bank ETF

  • The Benchmark Index for Kotak PSU Bank ETF is Nifty PSU Bank Index.
  • The Net Asset Value (NAV) disclosure for Kotak PSU Bank ETF are as follows:
    • The Kotak PSU Bank ETF shares are listed on the National Stock Exchange.
    • All the purchase and sale of the shares by the investors other than the authorised participants and large investors will be held on the stock exchange.
    • The NAV has a reference value for those who invest which will make it easier for the authorised participants for offering quotes on the NSE/BSE.
    • The NAV will be updated on the Association of Mutual Funds of India’s (AMFI’s) website by 9:00 p.m. on every business day.
    • The NAVs will be updated on the mutual fund’s asset management section of the Kotak Mahindra Asset Management website.
    • The NAVs will be disclosed on every business day in at least two of the newspapers that are circulated nationwide.
    • The NAV will be disclosed to a recognised stock exchange such as NSE/BSE where the shares to be purchased/already purchased are listed.
    • The AMC may calculate the indicative NAV on a daily basis and publish them on the asset management website of Kotak Mahindra. The NAV calculated on a daily basis will not affect the creation/redemption of the shares directly with the fund by authorised participant/large investors.
    • If there is a delay in disclosing the NAV before 9:00 p.m. on every business day, the AMC shall inform the AMFI about the same in writing. In case the NAVs are not available before the start of business hours on the next business day due to any reason, the new NAVs will be disclosed via a press release.
    • For the purchase/redemption of shares made directly from the fund on any business day before 3:00 p.m., the NAV of the respective day will be published on the same business day itself.
    • For the purchase/redemption of shares made directly from the fund on any business day after 3:00 p.m., the NAV of the respective day will be published on the following business day.

The monthly investment portfolio of the Kotak PSU Bank ETF will be available in a user-friendly and downloadable format on Kotak Mahindra’s mutual fund’s website, on or prior to the tenth day of the next month.

Kotak PSU Bank ETF Manager

Since 24 February, 2011, Kotak PSU Bank ETF has been managed by Mr. Deepak Gupta who is 36 years old and is a commerce graduate from Mumbai University. He is also a qualified Chartered Accountant (CA), Cost Accountant, and a Level III CFA (US, AIMR) certificate holder. He has 13 years of experience in the mutual funds sector and an experience of 11 years in fields related to fund management.

Some of the other schemes managed by Mr. Deepak Gupta are as follows:

  • Kotak Asset Allocator Fund
  • Kotak Equity Savings Fund
  • Kotak Sensex ETF
  • Kotak Equity Arbitrage Fund
  • Kotak Banking ETF
  • Kotak Capital Protection Oriented Scheme Series 1, Series 2, Series 3 and Series 4
  • Kotak NV 20 ETF
  • Kotak World Gold Fund
  • Kotak Global Emerging Market Fund
  • Kotak India EQ Contra Fund
  • Kotak Nifty ETF
  • Kotak US Equity Fund

Investment Restrictions of Kotak PSU Bank ETF

The investment restrictions of Kotak PSU Bank ETF are as follows:

  • The scheme will buy and sell assets only against the derivatives. Under no case will the fund engage in short selling, Badla financing or carry forward transactions. The fund can enter into derivatives transactions for fulfilling the purpose of balancing the investment portfolio and hedging as long as they are done in adherence to the SEBI guidelines for the same.
  • A scheme is permitted to invest in another scheme offered by the same or different Asset Management Company, so long as the total investments made by all schemes, form one scheme to another, under the same or different AMC does not exceed 5% of the fund’s NAV or any other limits set by the regulatory at any given point of time. The AMC cannot, as per the regulations set by SEBI, change the cost of any investment management and advisory services offered by the firm on such investments.
  • The fund can use the scheme’s corpus to invest in bank deposits of commercial banks for a short period if the scheme’s corpus has yet to be invested in securities.
  • The scheme is not permitted to invest in the following:
    • In any unlisted security of the sponsor's associate or group firm
    • In any investment instrument that is issued via private placement by the sponsor's associate or group firm
    • In any listed securities of the sponsor's group firms, where the investment made is 25% more than the scheme’s NAV.
  • The scheme is not permitted to invest in any fund of funds scheme.
  • The scheme cannot invest over 10% of its NAV in debt instruments that are unrated ad issued by a single entity. The total investment made in such instruments should not cross 25% of the scheme’s NAV. All such investments should be done adhering to the parameters fixed by the AMC and the Boards of the Trustee.
  • The scheme cannot invest over 10%of its NAV in debt funds and debt related instruments that comprise of equity market securities and non-money market securities that are issued by a single entity and are not rated below the investment grade fixed by an authorised credit rating agency. Such investment should be limited to 12% of the scheme’s NAV and carried out only after the AMC’s Board of directors and Board of Trustees gives approval for the same.

Dividend Policy of Kotak PSU Bank ETF

The Dividend policy of Kotak PSU Bank ETF state the following:

  • The agreement papers for dividend will be sent to the shareholder within 30 days of declaring the dividend.
  • The trustees can declare the dividend based on the adequacy and availability of the distributed assets. If and when the dividends are declared, they will be given to all the shareholders who are registered on the register that records the deposits, on the respective date recorded.
  • If the actual dividend payout amount is below Rs.500, the dividend will be mandatorily reinvested.

Why you should Invest in Kotak PSU Bank ETF:

The following are the benefits of investing in Kotak PSU Bank ETF:

  • The Kotak PSU Bank trades at very low values when compared to the private sector banks.
  • Most of the transactions carried out by the Kotak PSU Bank are technology oriented.
  • Using the high-end technology oriented platforms for transactions, the Kotak PSU Bank has been able to generate a higher income, thus improving the CASA.
  • The Kotak PSU Bank is strongly backed by one of the leading group of companies in financial sectors, Mahindra Group, thus proving beneficial during unstable market conditions.
  • Kotak PSU Bank being a public sector bank has financial support from the Indian Government due to the fact that they infuse capital into the public sector banks.

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