Kotak Mahindra Mutual Fund has launched a new index scheme — Kotak Nifty Alpha 50 Index Fund, now open for subscription from 28th July to 11th August 2025. With a very high-risk profile, this NFO aims to replicate the composition of the Nifty Alpha 50 Index and generate returns commensurate with its performance, subject to tracking errors.
Key NFO Details
| Details | Information |
| Fund Name | Kotak Nifty Alpha 50 Index Fund (Direct – Growth) |
| NFO Period | 28 July 2025 to 11 August 2025 |
| Allotment Date | 19 August 2025 |
| Category | Equity – Other Equity Index |
| Risk Level | Very High |
| Fund Type | Open-ended |
| Benchmark | Nifty Alpha 50 TRI |
| Minimum Investment | ₹1,000 (lumpsum), ₹500 (SIP) |
| Exit Load | 0% |
| Short-term capital gains (STCG) | Returns are 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 replicate the composition of the Nifty Alpha 50 Index and generate returns that are commensurate with the performance of the index, subject to tracking errors.
How Does This Compare with the Category?
| Time Period | Category Avg. Returns (CAGR) |
| 1 Year | -0.34% |
| 3 Years | 10.43% |
| 5 Years | 11.76% |
| 7 Years | 10.09% |
| 10 Years | 10.09% |
| 15 Years | 6.02% |
| Since Inception | 6.06% |
Should You Invest in This NFO?
Investing in an NFO makes sense if:
• You want passive exposure to a factor-based index (Alpha).
• You are comfortable with very high risk and volatility.
• You are looking for a long-term, index-linked strategy.
However, as with all NFOs, there is no past performance record, so it is better suited for informed investors.
Also Read:
- Kotak Active Momentum Fund NFO: A Thematic Investment Approach for 2025
- Bajaj Finserv Equity Savings Fund NFO: A Balanced Investment Approach for 2025
- Motilal Oswal Special Opportunities Fund NFO: A Thematic Approach to Long-Term Growth
- Aditya Birla Sun Life BSE 500 Quality 50 Index Fund NFO: A Passive Equity Strategy for 2025
- Franklin India Multi Asset Allocation Fund NFO: A High-Risk, Diversified 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 key equity funds include:
| Fund Name | AUM (₹ Cr) | 1Y Return | 5Y CAGR |
| Kotak Small Cap Fund | 18,031 | -3.89% | 32.90% |
| Kotak Infrastructure and Economic Reform Fund | 2,450 | -8.44% | 32.80% |
| Kotak Midcap Fund | 57,102 | 2.71% | 30.71% |
| Kotak Pioneer Fund | 2,958 | 7.87% | 26.81% |
| Kotak Contra Fund | 4,502 | -1.40% | 25.35% |
| Kotak Large & Midcap Fund | 28,294 | -0.36% | 24.26% |
Final Thoughts
If you’re looking for passive, factor-based exposure to high-alpha stocks, the Kotak Nifty Alpha 50 Index Fund NFO could be an option to consider.
Before investing, review the scheme document carefully and ensure it matches your risk profile and long-term financial goals.
