Kotak Mutual Fund Launches Active Momentum Fund at ₹10/Unit; NFO Opens 29 July 2025

Mumbai, 21 July 2025: Kotak Mahindra Mutual Fund has announced the launch of a new equity investment scheme—Kotak Active Momentum Fund—with units available at ₹10 each during the New Fund Offer (NFO) period. The NFO will open on 29 July 2025 and close on 12 August 2025. This new offering aims to capture long-term capital growth through a momentum-based stock selection strategy.

Focused Equity Strategy Designed for Long-Term Growth

Kotak Active Momentum Fund is positioned as an open-ended thematic equity scheme that uses a systematic momentum approach. It targets stocks demonstrating consistent performance backed by earnings upgrades, sales growth, strong return ratios, and high liquidity. The scheme intends to re-open for regular purchase and redemption on or before 28 August 2025.

Key Features of the Mutual Fund

• Scheme Name: Kotak Active Momentum Fund
• Fund Type: Open-ended equity scheme (Momentum theme)
• Benchmark: Nifty 500 TRI
• Investment Objective: Long-term capital growth through momentum-based stock selection
• NFO Price: ₹10 per unit
• NFO Dates: 29 July – 12 August 2025
• Scheme Re-opens: On or before 28 August 2025
• Minimum Investment (NFO): ₹5,000 and in multiples thereafter
• SIP Investment: ₹500 minimum, with 10 SIPs
• Exit Load: 0.5% if redeemed within 90 days; nil thereafter
• Risk Rating: Very High

Smart Asset Mix Built on Momentum Principles

The scheme will follow Kotak Mutual Fund’s proprietary Enhanced Earnings Factor Model, which filters stocks using a blend of momentum indicators and excludes those with governance concerns or high debt.

Asset Allocation Strategy

• Equity (Momentum Theme): 80% – 100%
• Equity (Non-Momentum Theme): 0% – 20%
• Debt & Money Market Instruments: 0% – 20%
• REITs & InvITs: 0% – 10%

Managed by Experienced Professionals with a Clear Fee Structure

Kotak Active Momentum Fund will be jointly managed by two seasoned professionals. Rohit Tandon will oversee equity and overseas investments, bringing over 19 years of experience. Abhishek Bisen, with Kotak since 2006, will handle debt allocation.

Fund Managers and Fees

• Fund Managers:
  • Rohit Tandon (Equity & Overseas)
  • Abhishek Bisen (Debt)
• Expense Ratio:
  • Regular Plan: Up to 2.25%
  • Direct Plan: Lower TER due to no distribution commissions

The fund’s annual recurring expenses will adhere to SEBI’s tiered total expense ratio (TER) based on asset size.

Transparent Tax Treatment for Different Investor Categories

Investors should note the applicable taxation based on holding period and income classification. Both capital gains and dividend distributions are taxed under existing rules, with TDS applicable wherever mandated.

Taxation Highlights

• Short-Term Capital Gains (≤ 12 months): 20%
• Long-Term Capital Gains (> 12 months): 12.5%
• IDCW (Dividend): Taxed based on individual slab (residents) or fixed rate (NRIs/corporates); TDS applies

Clear Differentiation from Other Kotak Equity Funds

This is not a variant of the existing Kotak Quant or Kotak Bluechip Funds. It is uniquely positioned as a quantitative, momentum-driven thematic fund with its own selection process. The use of earnings-based quant filters sets it apart within Kotak’s equity fund portfolio.

Fund Launch Aligned with SEBI’s Deployment and Disclosure Guidelines

The Asset Management Company (AMC) will ensure full compliance with SEBI regulations. Funds raised during the NFO must be deployed within 30 business days of allotment, in line with SEBI Circular SEBI/HO/IMD/IMD-PoD-1/P/CIR/2025/23. The scheme also complies with disclosure and operational norms under SEBI’s Master Circular dated 27 June 2024.

Kotak Mahindra Mutual Fund Strengthens Thematic Portfolio

Managed by Kotak Mahindra Asset Management Company Ltd., Kotak Mutual Fund is among India’s leading mutual fund houses. With a wide suite of products in equity, debt, hybrid, and thematic categories, the fund house continues to expand its offerings in line with market trends. It is regulated by the Securities and Exchange Board of India (SEBI) and caters to both institutional and retail investors.

REF: https://portal.amfiindia.com/spages/14268.pdf

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