Kotak Mahindra Asset Management Company Limited (Kotak Mutual Fund) has introduced a new fund offer (NFO) called Kotak Active Momentum Fund.
It is an open-ended equity scheme that follows the momentum investing theme.
The fund will invest in shares of companies whose earnings are growing quickly. For this, Kotak has developed its own unique model to identify suitable stocks.
The NFO will be open for public investment from 29 July 2025 to 12 August 2025.
What is Momentum Investing?
Momentum investing is a strategy where investors buy stocks that are already rising in price, expecting the trend to continue.
However, Kotak’s fund goes a step further—it not only looks at rising stock prices, but also considers earnings growth (earnings momentum).
The fund selects stocks that:
Have growing earnings per share (EPS)
Receive positive analyst opinions
Have earnings that beat expectations
Kotak’s in-house model checks for momentum by analyzing a company’s earnings, sales, and analysts’ ratings.
Key Details: Kotak Active Momentum Fund
Fund House: Kotak Mahindra Mutual Fund
Open for Investment: 29 July 2025
Closing Date: 12 August 2025
Fund Type: Open-ended
Category: Equity – Thematic (Momentum)
Minimum Investment: ₹5,000
Lock-in Period: None
Exit Load: 0.5% if redeemed within 90 days
Risk Level: Very High (as per riskometer)
Benchmark: NIFTY 500 TRI
How the Portfolio is Built
The fund selects stocks from the top 250 companies by market cap.
Strict filters are used to remove weak companies.
The result is a diversified portfolio of 40–50 quality stocks.
The portfolio is regularly reviewed and rebalanced to capture new opportunities.
Nilesh Shah, MD of Kotak AMC, said that the stock market often follows company earnings more reliably than share prices.
The fund is designed based on this idea. Instead of just chasing rising prices, it looks at solid earnings growth.
Fund Allocation Structure
80% to 100%: Equity & equity-related securities (Momentum theme)
0% to 20%: Equity (non-Momentum)
0% to 20%: Debt & money market instruments
0% to 10%: REITs and InvITs
During the NFO period, investors can start with a minimum investment of ₹5,000. After that, any amount can be added.
For SIP (Systematic Investment Plan), investors must commit at least ₹500 per installment for a minimum of 10 installments.
