NFO Alert: Kotak Mutual Fund Launches Active Momentum Fund

Kotak Mahindra Mutual Fund has introduced a new open-ended equity scheme called the Kotak Active Momentum Fund. The new fund offer (NFO) is available for subscription from July 29 to August 12, 2025. The minimum investment amount is set at ₹5,000.

Focus on Earnings-Based Momentum

The fund will follow a momentum investing strategy, using an in-house model that identifies stocks showing strong earnings and sales growth. This model also factors in analyst ratings to select stocks where earnings momentum is visible.

Stock Selection and Portfolio Size

The scheme will focus on the top 250 companies by market capitalisation. It plans to hold a portfolio of 40-50 stocks. These will be reviewed and rebalanced at regular intervals to reflect updates in earnings performance.

Fund Details and Structure

The fund falls under the thematic equity category and has no lock-in period. An exit load of 0.5% will be applicable for redemptions within 90 days. The scheme will offer both Growth and IDCW plans. The benchmark index is NIFTY 500 TRI. The fund is classified under the ‘Very High’ risk category.

Management and Background

Kotak Mahindra Asset Management Company started operations in 1998. As of March 2025, it manages more than 72.88 lakh investor folios across equity, debt, and hybrid categories. The company is present in 95 cities with 106 branches.

Read More: Best Flexi Cap Funds In August 2025!

Conclusion

Kotak Active Momentum Fund adds to the fund house’s equity offerings with a structured approach based on earnings data. While it is positioned within a high-risk category, investors interested in thematic equity funds may consider this option after evaluating its alignment with their investment goals.

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.