Kotak Mutual Fund Filed Draft with SEBI For 2 New Schemes

Kotak Mahindra Mutual Fund has filed draft offer documents with SEBI for 2 new schemes: Kotak Active Momentum Fund and Kotak Nifty 200 Momentum 30 ETF. While both funds are equity-oriented, they differ significantly in structure and strategy.

Kotak Active Momentum Fund

This open-ended equity scheme will follow a momentum-based investing theme, using Kotak’s proprietary "Enhanced Earnings Factor Model". The model identifies companies with strong earnings momentum, filtered by metrics like ROE, ROA, sales growth, and stock performance consistency. The scheme intends to invest 80-100% of assets in momentum-driven equities, with flexibility to park up to 20% in other equity, debt, or money market instruments.

• Benchmark: Nifty 500 TRI
• Fund Managers: Rohit Tandon (Equity), Abhishek Bisen (Debt)
• Exit Load: 0.5% if redeemed within 90 days
• Minimum Investment: ₹5,000 (during NFO), ₹500 via SIP

Kotak Nifty 200 Momentum 30 ETF

This ETF is to replicate the Nifty 200 Momentum 30 Index, which includes 30 stocks from the Nifty 200 based on normalised momentum scores. The fund offers passive exposure to high-momentum stocks with minimal tracking error. As per the Asset Allocation Plan, 95-100% is in index stocks, and up to 5% in debt/money market.

• Benchmark: Nifty 200 Momentum 30 TRI
• Structure: Exchange Traded Fund (ETF)
• Entry/Exit Load: None
• Minimum Application (NFO): ₹5,000
• Tracking Error Target: Within 2%, with a tracking difference capped at 50 bps

Key Differences

While both schemes focus on momentum as a theme, the Active Momentum Fund is actively managed using a proprietary strategy, whereas the ETF simply tracks an index. The ETF is also listed on the NSE and is meant for secondary market trading, with large investors or market makers transacting in creation units.

Read More: Best Mutual Funds for Lumpsum Investment for July 2025!

Conclusion

Kotak’s twin fund filings show an interest in momentum-driven investing, catering to both passive and active investors. These offerings expand the AMC’s thematic fund lineup and provide options for investors seeking momentum exposure across different risk and strategy profiles.

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.