Kotak Mahindra Mutual Fund Files Draft For Dividend Yield Fund with SEBI

Kotak Mahindra Mutual Fund has submitted a draft Scheme Information Document (SID) to SEBI for the launch of Kotak Dividend Yield Fund, an open-ended equity scheme. The scheme will primarily invest in dividend-yielding stocks.

Investment Objective 

The proposed fund aims to generate long-term capital appreciation and/or dividend distribution by investing in a diversified portfolio of equity and equity-related instruments of companies with a history of paying dividends or conducting share buybacks. 

There is no assurance that the investment objective will be achieved.

Asset Allocation Pattern

As per the draft, 65-100% of the fund’s assets will be invested in equity and equity-related instruments of dividend-yielding companies. Up to 35% may be invested in other equities, debt and money market instruments. The fund may also invest up to 10% in REITs and InvITs, and up to 20% in overseas securities.

Fund Plans and Minimum Investment

Both Direct and Regular Plans will be available under the scheme. Investors can choose between Growth and Income Distribution cum Capital Withdrawal (IDCW) options. The minimum application amount is ₹100, and the same applies to SIP and additional purchases.

Load Structure and NAV Disclosure

There is no entry load. An exit load of 1% applies if more than 10% of units are redeemed within one year. NAVs will be disclosed on all business days on the AMC and AMFI websites by 11 p.m.

Benchmark and Fund Managers

The scheme will track the Nifty 500 TRI as its benchmark index. Ms. Shibani Sircar Kurian will handle equity and overseas investments, while Mr. Abhishek Bisen will manage the debt component.

Read More: Best Mutual Funds for Lump Sum Investments in India for August 2025!

Conclusion

Following the draft filing with SEBI, the scheme is expected to open for subscription upon receiving regulatory approval and completing procedural formalities.

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 are subject to market risks, read all the related documents carefully before investing.