Q. What is Kotak Sensex ETF ?
A. Kotak Sensex ETF  is an Open ended exchange traded fund listed on Bombay Stock Exchange Ltd.

Q What is the objective of Kotak Sensex ETF ?
A 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.

Q To whom this scheme is suitable for ?
A. Investors who:
    a) 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.
    b) 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 stocks that comprise the BSE Sensex and in the same proportion as in the index.

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 1/100th of the value of BSE Sensex.

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

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.

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 NFO the entry load for all investors
       For amounts <1cr : 1%
       For amounts >=1cr : Nil
       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 .

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.