Kotak Mahindra Mutual Fund has launched a new short-duration debt scheme — Kotak CRISIL-IBX Financial Services 9–12 Months Debt Index Fund Direct – Growth, open for subscription from 17th September to 22nd September 2025. Designed with a low to moderate risk profile, this NFO aims to generate returns closely tracking the CRISIL-IBX Financial Services 9–12 Months Debt Index, providing investors exposure to high-quality short-term corporate papers, certificates of deposit, and bonds.
Key NFO Details
| Detail | Information |
| Fund Name | Kotak CRISIL-IBX Financial Services 9–12 Months Debt Index Fund Direct – Growth |
| NFO Period | 17 Sep 2025 to 22 Sep 2025 |
| Allotment Date | 24 Sep 2025 |
| Category | Debt – Short Duration Funds |
| Risk Level | Low to Moderate |
| Fund Type | Open-ended |
| Benchmark | CRISIL-IBX Financial Services 9–12 Months Debt |
| Minimum Investment | ₹1,000 (lumpsum), ₹500 (SIP) |
| Exit Load | 0% |
| Tax on your gains | Profits are added to your income and taxed as per your slab rate |
Investment Objective
The scheme seeks to:
• Generate returns that closely track the CRISIL-IBX Financial Services 9–12 Months Debt Index before fees and expenses.
• Provide exposure to short-term corporate debt instruments such as Commercial Papers (CPs), Certificates of Deposit (CDs), and corporate bonds maturing within 9–12 months.
This structure is suitable for investors looking for relatively safer short-term income and low-volatility debt exposure.
How Does This Compare with the Category?
| Time Period | Category Avg. Returns (CAGR) |
| 1 Year | 8.11% |
| 3 Years | 8.26% |
| 5 Years | 7.27% |
| 7 Years | 7.21% |
| 10 Years | 7.33% |
| 15 Years | 7.79% |
| Since Inception | 7.88% |
These figures provide a benchmark for evaluating potential returns once the fund is operational.
Should You Invest in This NFO?
Investing in this NFO makes sense if:
• You seek low to moderate risk exposure through short-duration debt instruments.
• You want returns aligned with a well-defined corporate debt index.
• You prefer low-volatility, predictable returns for your short-term debt allocation.
Keep in mind that NFOs have no past performance record, so they are more suitable for informed investors seeking low-risk debt exposure.
Also Read:
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- Axis Nifty500 Quality 50 Index Fund NFO: A Quality-Driven Index Strategy for 2025
- Edelweiss Multi Asset Omni Fund of Fund NFO: A Diversified Approach to Investing for 2025
- Tata Nifty Next 50 Index Fund NFO: A Very High-Risk Large Cap Index Fund for 2025
About Kotak Mahindra Mutual Fund
Kotak Mahindra Mutual Fund manages ₹5,26,213 Cr AUM (as of June 30, 2025) and has a strong track record across debt and equity funds. Some top-performing debt funds include:
| Fund Name | AUM | 1Y Returns | 3Y Returns |
| Kotak Medium Term Fund | 1,832 Cr | 9.28% | 8.72% |
| Kotak Credit Risk Fund | 687 Cr | 8.09% | 8.27% |
| Kotak Floating Rate Fund | 3,081 Cr | 8.94% | 8.17% |
| Kotak Dynamic Bond Fund | 2,777 Cr | 6.13% | 8.10% |
| Kotak Bond Short-term Fund | 18,230 Cr | 8.35% | 7.97% |
| Kotak Corporate Bond Fund | 17,612 Cr | 8.41% | 7.96% |
The AMC’s expertise across debt instruments adds credibility to this new index fund.
Final Thoughts
For investors seeking short-duration, low-to-moderate risk debt exposure in 2025, the Kotak CRISIL-IBX Financial Services 9–12 Months Debt Index Fund NFO is a suitable option for steady, predictable returns.
Before investing, review the scheme document thoroughly and consider your financial goals, risk appetite, and investment horizon.
