Kotak Mahindra Mutual Fund has launched a new thematic scheme — Kotak Rural Opportunities Fund Direct – Growth, now open for subscription from 6th November to 20th November 2025. With a very high-risk profile, this open-ended equity fund aims to capitalise on India’s expanding rural economy by investing in companies engaged in rural and allied themes.
Key NFO Details
| Detail | Information |
| Fund Name | Kotak Rural Opportunities Fund (Direct – Growth) |
| NFO Period | 06 Nov 2025 to 20 Nov 2025 |
| Allotment Date | 27 Nov 2025 |
| Category | Equity – Thematic |
| Risk Level | Very High |
| Fund Type | Open-ended |
| Benchmark | Nifty Rural TRI |
| Minimum Investment | ₹1,000 (lumpsum), ₹500 (SIP) |
| Exit Load | Exit load of 0.5%, if redeemed within 90 Days |
| 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:
• Generate long-term capital appreciation by investing predominantly in equity and equity-related securities of companies engaged in rural and allied sectors.
This approach focuses on capturing growth from rural development, agricultural advancement, rural infrastructure, and consumption-driven sectors.
How Does This Compare with the Category?
| Time Period | Category Avg. Returns (CAGR) |
| 1 Year | 14.10% |
| 3 Years | 15.93% |
| 5 Years | 16.70% |
| 7 Years | 18.20% |
| 10 Years | 15.56% |
| 15 Years | 14.67% |
| Since Inception | 13.77% |
These returns showcase the long-term potential of thematic funds linked to India’s growth sectors.
Should You Invest in This NFO?
Investing in this NFO may be suitable if:
• You believe in the long-term potential of India’s rural economy.
• You’re seeking thematic equity exposure with opportunities in agri-business, rural infrastructure, and consumption.
• You can withstand very high volatility for potential higher returns over time.
However, since this is a new fund with no performance track record, it may be best suited for long-term, high-risk investors who understand thematic investing.
About Kotak Mahindra Mutual Fund
Kotak Mahindra Mutual Fund manages an impressive ₹5,66,982 Cr AUM (as of September 30, 2025) and offers a wide range of high-performing equity funds across sectors and themes.
| Fund Name | AUM | 1Y | 5Y |
| Kotak Infrastructure and Economic Reform Fund | 2,341 Cr | -0.79% | 32.66% |
| Kotak Midcap Fund | 58,300 Cr | 5.07% | 27.89% |
| Kotak Small Cap Fund | 17,480 Cr | -6.07% | 27.40% |
| Kotak Contra Fund | 4,716 Cr | 4.44% | 24.27% |
| Kotak Pioneer Fund | 3,148 Cr | 9.81% | 24.25% |
| Kotak Large & Midcap Fund | 28,381 Cr | 4.64% | 22.92% |
Additionally, leading funds in the thematic category include:
| Fund Name | Fund Size | 5Y Returns |
| Sundaram Services Fund | ₹4,426 Cr | 25% p.a. |
| ICICI Prudential Exports and Services Fund | ₹1,374 Cr | 23% p.a. |
| ICICI Prudential Commodities Fund | ₹3,059 Cr | 32% p.a. |
Also Read:
- LIC MF Consumption Fund NFO: A Play on India’s Consumption Growth
- Axis Income Plus Arbitrage Passive FoF NFO: A Low-Risk Diversified Investment for 2025
- Zerodha BSE SENSEX Index Fund NFO: A Large-Cap Index Opportunity for 2025
- Kotak Gold Silver Passive FoF NFO: A Commodities Investment Opportunity for 2025
- ICICI Prudential Conglomerate Fund NFO: Thematic Equity Opportunity for 2025
Final Thoughts
The Kotak Rural Opportunities Fund NFO provides an opportunity to participate in India’s rural transformation through a diversified portfolio of companies focused on rural growth and allied sectors.
For investors with a long-term horizon and a high-risk appetite, this fund could offer meaningful exposure to one of India’s fastest-evolving economic themes.
Before investing, review the scheme document carefully and ensure the fund aligns with your financial goals and risk tolerance.
