Kotak Mahindra Mutual Fund has launched a new passive strategy — Kotak Nifty500 Momentum 50 Index Fund, open for subscription from 20th November to 4th December 2025. This very high-risk index fund tracks the Nifty500 Momentum 50 Index, offering exposure to stocks selected based on momentum factors, i.e., securities showing strong recent performance trends.
Momentum investing aims to capture return persistence, making this NFO attractive for investors who prefer rule-based, objective, and quantitative strategies.
Key NFO Details
| Detail | Information |
| Fund Name | Kotak Nifty500 Momentum 50 Index Fund |
| NFO Period | 20 Nov 2025 to 04 Dec 2025 |
| Allotment Date | 11 Dec 2025 |
| Category | Equity – Other Equity Index |
| Risk Level | Very High |
| Fund Type | Open-ended |
| Benchmark | Nifty500 Momentum 50 Index |
| Minimum Investment | ₹10,000 (lumpsum), ₹3,000 (SIP) |
| Exit Load | 0% |
| 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 provide returns that correspond to the performance of the Nifty500 Momentum 50 Index, subject to tracking errors.
This factor-based index identifies and allocates to the top 50 momentum-driven stocks within the Nifty 500 universe.
How Does This Compare with the Category?
| Time Period | Category Avg. Returns (CAGR) |
| 1 Year | 9.07% |
| 2 Years | 4.39% |
| 3 Years | 8.22% |
| 4 Years | 9.05% |
| 5 Years | 8.98% |
| 7 Years | 9.27% |
| 10 Years | 7.37% |
Momentum-based index funds have historically outperformed during trending markets but may lag in sideways or volatile phases.
Should You Invest in This NFO?
You may consider this NFO if:
- You prefer quantitative, rules-based investing over active stock selection.
- You want exposure to momentum as a factor, which has historically shown long-term return potential.
- You have a high-risk appetite, as factor-based indices can be more volatile.
- You are seeking long-term growth through a passive yet strategic index.
However, note that momentum indices can see performance fluctuations during market reversals or periods without clear trends.
About Kotak Mahindra Mutual Fund
Kotak Mahindra Mutual Fund manages ₹5,66,982 Cr AUM (as of September 30, 2025) across 84 schemes. The AMC is well-regarded for its diversified equity offerings across midcap, small cap, contra, and thematic categories.
More Funds from Kotak Mahindra Mutual Fund
| Fund Name | AUM | 1Y | 5Y |
| Kotak Infrastructure and Economic Reform Fund | 2,425 Cr | 2.75% | 28.57% |
| Kotak Midcap Fund | 60,385 Cr | 7.76% | 24.85% |
| Kotak Small Cap Fund | 18,024 Cr | -4.5% | 23.41% |
| Kotak Contra Fund | 4,921 Cr | 8.58% | 21.51% |
| Kotak Pioneer Fund | 3,285 Cr | 11.03% | 20.9% |
| Kotak Large & Midcap Fund | 29,516 Cr | 9.56% | 20.6% |
Top Performing Funds in This Category
| Fund Name | Fund Size | 5Y Returns |
| ICICI Prudential BHARAT 22 FOF | ₹2,454 Cr | 32% p.a. |
| Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund | ₹168 Cr | 15% p.a. |
| Motilal Oswal Nifty Bank Index Fund | ₹647 Cr | 14% p.a. |
Also Read:
- Mirae Asset Infrastructure Fund NFO: A Sector-Focused Bet on India’s Growth
- Samco Small Cap Fund NFO: Investing in India’s Emerging Growth Stories
- PGIM India Multi Asset Allocation Fund NFO: A Diversified Investment Approach for 2025
- Helios Small Cap Fund NFO: Tapping into India’s Emerging Growth Stories
- HDFC BSE India Sector Leaders Index Fund NFO: Capturing India’s Sectoral Leaders
Final Thoughts
The Kotak Nifty500 Momentum 50 Index Fund NFO is a compelling option for investors looking to benefit from factor investing, especially the momentum premium observed in equity markets.
If you are comfortable with the higher volatility associated with momentum strategies and seek long-term growth, this NFO may be worth adding to your shortlist.
Always ensure your investment choices align with your risk appetite, financial goals, and investment horizon before committing.
For a seamless and guided investing experience, consider investing in mutual funds with Torus Digital.
