Kotak Mahindra Mutual Fund has launched a new equity scheme — Kotak Active Momentum Fund, now open for subscription from 29th July to 12th August 2025. With a very high-risk profile, this NFO aims to generate long-term capital appreciation by investing in equities selected based on the momentum theme using Kotak’s in-house enhanced earnings factor model.
Key NFO Details
| Details | Information |
| Fund Name | Kotak Active Momentum Fund (Direct – Growth) |
| NFO Period | 29 July 2025 to 12 August 2025 |
| Allotment Date | 20 August 2025 |
| Category | Equity – Thematic |
| Risk Level | Very High |
| Fund Type | Open-ended |
| Benchmark | NIFTY 500 TRI |
| Minimum Investment | ₹5,000 (lumpsum), ₹500 (SIP) |
| Exit Load | Exit load of 0.50%, if redeemed within 90 days |
| Short term capital gains (STCG) | Returns taxed at 20% if you redeem before 1 year |
| Long term capital gains (LTCG) | After 1 year, returns above ₹1.25 lakh in a financial year are taxed at 12.5% |
Investment Objective
The scheme seeks to generate long-term capital appreciation by investing predominantly in equity and equity-related securities selected using the momentum theme, guided by Kotak’s proprietary enhanced earnings factor model.
How Does This Compare with the Category?
| Time Period | Category Avg. Returns (CAGR) |
| 1 Year | 2.81% |
| 3 Years | 15.94% |
| 5 Years | 17.29% |
| 7 Years | 17.70% |
| 10 Years | 15.15% |
| 15 Years | 14.40% |
| Since Inception | 13.66% |
Should You Invest in This NFO?
Investing in an NFO makes sense if:
• You seek thematic equity exposure based on momentum investing.
• You are comfortable with very high risk in pursuit of long-term returns.
• You believe in Kotak’s quantitative factor-based strategy.
However, NFOs lack historical data, making them suitable for investors who understand thematic strategies and their volatility.
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- DSP Nifty500 Flexicap Quality 30 Index Fund NFO: A Focused Index Strategy for 2025
- Baroda BNP Paribas Gold ETF FoF NFO: A Precious Metals-Backed Investment Strategy for 2025
- Bank of India Mid Cap Fund NFO: A Focused Equity Growth Strategy for 2025
About Kotak Mahindra Mutual Fund
| Details | Information |
| Total AUM | ₹5,26,213 Cr (as on June 30, 2025) |
| Number of Schemes | 80 |
Some of their notable equity funds include:
| Fund Name | AUM (₹ Cr) | 1Y Return | 5Y CAGR |
| Kotak Infrastructure and Economic Reform Fund | 2,450 | -4.75% | 32.47% |
| Kotak Small Cap Fund | 18,031 | -0.92% | 31.86% |
| Kotak Midcap Fund | 57,102 | 8.30% | 30.36% |
| Kotak Pioneer Fund | 2,958 | 11.96% | 26.04% |
| Kotak Contra Fund | 4,502 | 2.22% | 25.24% |
| Kotak Large & Midcap Fund | 28,294 | 2.56% | 24.09% |
Final Thoughts
If you’re looking for a factor-based thematic equity strategy that taps into momentum trends, the Kotak Active Momentum Fund NFO may be worth evaluating.
Before investing, go through the scheme document carefully and assess whether it fits your investment objectives and risk profile.
