Q. What is Kotak PSU Bank ETF ?
A. Kotak PSU Bank ETF is an Open ended exchange traded fund listed on National Stock Exchange Of India Ltd.

Q What is the objective of Kotak PSU Bank ETF ?
A The investment objective of the scheme is to provide returns that closely correspond to the total returns of CNX PSU Bank Index, subject to tracking errors.

Q To whom this scheme is suitable for ?
A. Investors who:
    a) want to limit scrip specific risk by taking exposure to all the securities represented by CNX PSU Bank Index at a time, instead of any specific scrip, at a low cost
    b) want exposure to PSU banks in banking sector in their asset allocation strategy;
    c) are arbitragers between cash market and derivatives market;
    d) believe in investing in mutual fund schemes that follow a passive investment strategy.

Q. In which companies the Fund Manager will invest the money ?
A. The scheme will invest in the securities that comprise the CNX PSU Bank Index and in the same proportion as in the Index. For details refer creation unit .

Q. What is the face value of one unit ?
A. The face value of each unit will be Rs. 10 per unit. On allotment value of each unit will be approximately equal to 1/10th of the value of CNX PSU Bank Index.

Q. How to Buy & Sell the units of Kotak PSU Bank ETF ?
A.

From Secondary Market : Units of Kotak PSU Bank ETF are traded in the National Stock Exchange. The ISIN corresponding to these units is INF373I01023. The symbol is (KOTAKPSUBK ). 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 National Stock Exchange

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 by depositing basket of securities comprising CNX PSU Bank Index plus the applicable cash component and transaction costs

# 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.

Each creation unit consists of 10,000 units of Kotak PSU Bank ETF. Each unit of Kotak PSU Bank ETF will be approximately equal to 1/10th of the value of the CNX PSU Bank Index.

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.

Q. How will I know the appropriate price to transact in the secondary market ?
A. KMAMC endeavours to provide an indicative NAV in our website.The investors may use the same to transact in the market.

Q. What are the loads applicable for this scheme ?
A. During the continuous offer the Entry and Exit load is NIL

Q. What are the other charges applicable during the buy or sell in the continuous offer ?
A. 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.

Q. What are the tax implications in this scheme ?
A. No TDS on redemption irrespective of amount redeemed, for Unitholders Resident in India.

Investments in the scheme are exempt from Wealth Tax.

As per section 111A of the Act, short term capital gain arising from the sale of a unit of an equity oriented fund is taxable at the rate of 10%. However, at the time of sale of units (redemption) the unitholder will have to pay STT of 0.25% of the sale / redemption value.

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