Kotak Mutual Funds Launched Kotak Dividend Yield Fund: Scheme Opens till January 19

Kotak Mahindra Asset Management Company (KMAMC) has announced the introduction of the Kotak Dividend Yield Fund, an open-ended equity mutual fund designed to primarily invest in dividend-paying stocks.

Fund Details and Investment Strategy

The fund will remain open for public subscription until January 19. Its objective is to deliver long-term capital appreciation along with potential dividend income by investing in a well-diversified portfolio of companies that have consistently distributed dividends.

According to KMAMC, the scheme will largely focus on companies that have paid dividends in at least one of the last three financial years. Beyond dividend yield, the investment strategy will evaluate parameters such as cash flow strength, earnings growth potential, overall business fundamentals, and the quality of management. The portfolio is expected to be tilted toward mature, stable businesses, with diversification across sectors.

The asset management company noted that the portfolio will undergo regular reviews to identify attractive dividend-yielding opportunities while ensuring adherence to the scheme’s investment objectives. It also emphasized that rigorous screening criteria related to financial stability and governance standards will guide stock selection.

During the new fund offer (NFO) period, investors can participate with a minimum investment of ₹100, with additional investments allowed in multiples thereafter, including switches.

KMAMC cautioned that mutual fund investments are subject to market risks and clarified that the scheme does not assure or guarantee returns. Investors are encouraged to seek advice from financial and tax professionals before investing to determine whether the fund aligns with their financial goals.

Also Read: Upcoming NFOs This Week (Jan 05–09): Kotak Dividend Yield and Sundaram Income Plus Arbitrage Funds Open

About Kotak Mahindra Asset Management Company

Kotak Mahindra Asset Management Company, a wholly owned subsidiary of Kotak Mahindra Bank, has been managing mutual fund schemes since 1998. As of September 2023, the company reported more than 53 lakh investor folios across its mutual fund offerings.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private 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 scheme-related documents carefully.