NFO Alert: Kotak Mahindra Mutual Fund to Launch Dividend Yield Fund

Kotak Mahindra Mutual Fund has announced a new fund offer for the Kotak Dividend Yield Fund. The New Fund Offer (NFO) will open for subscription on January 5, 2026, and close on January 19, 2026. Units will be available at an initial NAV of ₹10.  

The minimum investment amount during the offer period is ₹100. The scheme does not allow investments through the SIP route at this stage. 

Scheme Category and Structure 

The Kotak Dividend Yield Fund is classified under the Equity – Diversified category. It is an equity-oriented scheme with a growth structure.  

The fund is open-ended in nature, allowing investors to enter or exit after allotment. There is no exit load applicable on redemptions, as per the scheme details. 

Investment Objective 

The stated objective of the scheme is to generate long-term capital appreciation and/or dividend income. This is proposed to be achieved through investments in a diversified portfolio of equity and equity-related instruments of dividend-yielding companies.  

The offer document notes that the objective is indicative in nature and may not be achieved in all market conditions. 

Portfolio Focus 

The scheme intends to invest primarily in companies that distribute dividends. The portfolio is expected to be diversified across sectors and stocks, rather than concentrated in a single segment.  

Selection of securities will be based on internal research processes and market conditions prevailing at the time of investment. 

Asset Class and Risk Indicator 

The fund falls under the equity asset class. As per the risk-o-meter disclosed by the fund house, the scheme carries a low risk label.  

The risk level is subject to change depending on portfolio composition and market movements over time. 

Fund Management 

The Kotak Dividend Yield Fund will be managed by Shibani Kurian, who is part of the equity fund management team at Kotak Mahindra Mutual Fund.  

The fund manager will be responsible for security selection and portfolio allocation in line with the scheme’s mandate. 

Read More: NFO Alert: Kotak Mutual Fund Launches Nifty Next 50 ETF; Opens on December 18! 

Conclusion 

The Kotak Dividend Yield Fund NFO provides an equity-based option focused on dividend-paying companies, with a low minimum investment and no exit load. Further details on holdings and performance will be available after the scheme becomes operational. 

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.