Kotak Mahindra Mutual Fund To Launch Kotak Dividend Yield Fund

Mumbai, July 29 – Kotak Mahindra Mutual Fund has received regulatory clearance from the Securities and Exchange Board of India (SEBI) to launch a new open-ended equity scheme: the Kotak Dividend Yield Fund. The fund aims at attaining long-term capital appreciation and/or dividend income by investing in a well-diversified portfolio of dividend-paying companies. The benchmark index of the fund will be the Nifty 500 TRI (Total Return Index). The index represents the performance of the top 500 listed companies in India, in terms of both price appreciation and dividend returns.

Fund Overview and Investment Strategy

The Kotak Dividend Yield Fund aims to generate long-term wealth by investing in equity and equity-related securities of companies with a proven track record of paying dividends or conducting share buybacks over the past three years. According to the Scheme Information Document dated June 10, 2025, the fund allocates 65–100% to dividend-yielding equities, up to 35% to non-dividend-paying stocks and debt instruments, and up to 10% to REITs and InvITs. Benchmarked against the Nifty 500 TRI, the fund employs an actively managed strategy, maintaining exposure across a broad range of industries for diversification.

Key Terms and Features

The Kotak Dividend Yield Fund is offered at a New Fund Offer (NFO) price of ₹10 per unit. Investors can choose between two plan variants based on their preferred investment mode: the Regular Plan and the Direct Plan. Each plan carries its cost structure, including differences in expense ratios and commission charges.

The fund is designed to cater to a wide range of investor preferences, offering flexibility and transparency. While specific options such as Growth and IDCW (Income Distribution cum Capital Withdrawal) are not detailed here, they are typically available to align with investors’ income needs or reinvestment goals.

Fund Managers

• Ms. Shibani Sircar Kurian – Equity and overseas investments
• Mr. Abhishek Bisen – Debt investments
  Both are senior fund managers with long-standing experience across multiple Kotak schemes.

Regulatory Compliance & Risk Profile

The scheme complies with SEBI’s Mutual Fund Regulations (1996) and the updated master circular dated June 27, 2024. It carries a “Very High Risk” label according to the risk-o-meter and is suitable for investors seeking long-term capital growth through fundamentally sound, dividend-paying stocks.

About the AMC

Kotak Mahindra Asset Management Company Ltd, part of the Kotak Mahindra Group, is one of India’s leading mutual fund houses. It offers a broad range of debt and equity products, with consistent performance across flagship schemes. The company is SEBI-registered and headquartered in Mumbai.

Note: Investors are advised to read the complete SID and consult financial advisors before investing.

REF: https://www.sebi.gov.in/filings/mutual-funds/jul-2025/kotak-dividend-yield-fund_95663.html

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