Kotak Mutual Fund Launches Energy Fund, SBI Mutual Fund Files for Arbitrage-Based FoF With SEBI

Two new mutual fund offerings are in focus this month – Kotak Mutual Fund has opened subscriptions for its energy-focused equity scheme, while SBI Mutual Fund has filed draft papers for a fund of fund (FoF) scheme combining debt and arbitrage strategies. 

Kotak Energy Opportunities Fund 

Kotak Mutual Fund has launched the Kotak Energy Opportunities Fund, an open-ended equity scheme focused on India’s energy and allied sectors. The New Fund Offer (NFO) opens on April 3, 2025, and closes on April 17, 2025.

This scheme aims to generate long-term capital appreciation by investing in equity and equity-related instruments of companies operating in sectors such as power, oil and gas, renewables, and ancillary energy services. The fund follows a market-cap-agnostic approach and will be benchmarked against the NIFTY Energy Total Return Index.

Details

• Fund Type: Open-ended sectoral/thematic equity scheme
• Minimum Investment: ₹100
• Exit Load: 1% if units beyond 10% are redeemed within one year
• Fund Managers: Harsha Upadhyaya, Mandar Pawar, and Abhishek Bisen
• Benchmark: NIFTY Energy TR Index

The fund is available for fresh subscriptions and switch-ins from existing Kotak Mutual Fund schemes during the NFO window.

SBI Income Plus Arbitrage Active FoF

SBI Mutual Fund has filed draft papers with SEBI for a new open-ended Fund of Fund (FoF) – SBI Income Plus Arbitrage Active FoF. This scheme will invest primarily in units of actively managed debt-oriented and arbitrage mutual fund schemes.

The fund’s objective is to offer a mix of regular income and capital appreciation. It will maintain a portfolio allocation of 50–65% in debt schemes, 35–50% in arbitrage schemes, and up to 5% in money market instruments.

Details

• Benchmark: 65% Nifty Composite Debt Index + 35% Nifty 50 Arbitrage Index
• Minimum Investment (NFO): ₹5,000
• Exit Load: 1% if units beyond 10% are redeemed within one year
• Fund Manager: Ardhendu Bhattacharya

Units will be offered at ₹10 each during the NFO and will be available for continuous sale and repurchase post-listing.

Conclusion

Kotak’s new fund targets growth in the evolving energy sector, while SBI’s proposed FoF focuses on income generation through debt and arbitrage strategies. Both funds have specific investment objectives, structures, and risk profiles.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.