Kotak Mahindra Mutual Fund to Introduce Dividend Options in Low Duration Fund

Kotak Mahindra Mutual Fund has introduced weekly and monthly dividend payout options under the Kotak Low Duration Fund. The changes will come into effect from May 11, 2026, according to information released by the asset management company. 

The scheme is an open-ended low duration debt fund benchmarked against the NIFTY Low Duration Debt Index A-I. It has been categorised under the low to moderate risk segment as per the latest riskometer disclosure. 

Fund Size and Performance 

The fund had assets under management of ₹16,259 crore as of April 30, 2026. The expense ratio stood at 0.40% during the same period. Since its launch on January 1, 2013, the scheme has generated returns of 7.88%, based on fund house data. 

The latest scheme details also showed a “High” return grade and an “Above Average” risk grade. The fund continues to maintain a portfolio largely focused on debt instruments with shorter maturity periods. 

Portfolio Composition 

According to the portfolio allocation disclosed by the fund house, 99.05% of the corpus is invested in debt securities. The remaining 0.95% is held in cash and cash equivalents. 

The scheme is managed by Deepak Agrawal and Dharmesh Thakar. Low duration debt funds generally invest in treasury bills, certificates of deposit, commercial papers and short-term corporate debt instruments. 

These schemes are typically structured to carry lower interest rate sensitivity compared to medium and long-duration debt funds. 

Investment Details 

The minimum investment amount in the scheme is ₹100. The same amount applies to additional investments and systematic investment plans (SIPs).  

Investors can withdraw a minimum of ₹1,000 from the scheme, while the minimum balance requirement has also been fixed at ₹1,000. 

The scheme does not levy any exit load and does not have a lock-in period. With the latest revision, investors in the Kotak Low Duration Fund will have access to weekly and monthly dividend payout frequencies from May 2026. 

Read More: Upcoming NFO: Axis Mutual Fund Files Draft Papers with SEBI for Fixed Maturity Plan! 

Conclusion  

The Kotak Low Duration Fund will offer weekly and monthly dividend payout options under the scheme from May 11, 2026, according to the latest update from the fund house. 

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