An unbiased review of Kotak Nifty Commodities Index Fund

If you're bullish on India's commodities sector (which includes energy, metals, and industrial materials), this scheme offers an easy way to gain exposure without picking individual stocks.  The fund will invest in: * Equity shares of companies in the Nifty Commodities Index * Index derivatives when necessary * A small portion of the portfolio (up to 5%) may be held in debt/money market instruments **Observations on the Portfolio:** * Reliance Industries alone accounts for 10.57% of the index. NTPC has 8.56%. * Sectors like Oil & Gas and Metals have significant representation. * The average impact cost is low (<1%). **Fund managers:** 1. Devender Singhal: Over 22 years of experience in fund management and equity research. Has been associated with Kotak AMC since August 2015. Before Kotak AMC, he worked with various PMS like Kotak, Religare, Karvy, and P N Vijay Financial Services. 2. Satish Dondapati: Over 16 years of experience in managing ETFs. Joined Kotak AMC in March 2008 in the Products Department. Previously worked on the Mutual Fund Product Team at Centurion Bank of Punjab. 3. Abhishek Bisen: Over 17 years of experience in debt fund management. Has been associated with Kotak AMC since October 2006. Before Kotak AMC, he worked with Securities Trading Corporation of India Ltd. **Final Verdict** *Pros:* 1. Low-Cost Access 2. Exposure to 30 companies across multiple sectors. 3. Capitalizes on India’s growing commodities sector. *Cons*: 1. Heavy reliance on a few large-cap stocks. 2. Commodities are sensitive to economic cycles. 3. No scope for alpha generation. **Note:** *You should think of thematic funds only when you or your advisor has the relevant knowledge and knows when to EXIT.* https://preview.redd.it/cwwn8zyhsfke1.jpg?width=1578&format=pjpg&auto=webp&s=49f9929cc608f15aa8085587739815834a4edc03