The Indian mutual fund market is showing strong activity at the start of the new year. Kotak Mahindra Asset Management Company Limited (KMAMC) has introduced the Kotak Dividend Yield Fund, an open-ended equity scheme that focuses on dividend-paying stocks.
The fund aims to provide long-term capital growth along with dividend income by investing in a diversified portfolio of companies with a consistent history of paying dividends.
The New Fund Offer (NFO) started on January 5, 2026, and will continue until January 19, 2026.
Investment Strategy
The fund invests in companies that have paid dividends in at least one of the last three financial years. Stocks are chosen based on cash flow, earnings growth potential, business fundamentals, and management quality.
By focusing on mature and stable businesses across sectors, the fund seeks to provide long-term capital appreciation as well as potential dividend income.
In simple terms, the fund invests in companies that are profitable, strong, and reward shareholders.
Nilesh Shah, Managing Director of KMAMC, said, “Dividend-paying companies often demonstrate sound business practices and focus on shareholder value.”
He added that such stocks can bring quality and strength to investors’ portfolios.
Fund manager Shibani Kurian Sircar mentioned that the fund will use a disciplined research-driven process to select companies that generate consistent cash flow and reward investors.
Who Should Invest?
The fund may suit investors looking for long-term capital growth and those interested in companies included in the Nifty 500 TRI Index.
Fund Managers: Abhishek Bisen and Shibani Sircar Kurien
Risk Level: Very High
Kotak Dividend Yield Fund – Key Details
Fund Type: Open-ended Equity Thematic Dividend Yield
NFO Open Date: January 5, 2026
NFO Close Date: January 19, 2026
Minimum Investment: ₹100
Minimum SIP Investment: ₹100
Exit Load: 1% if more than 10% of units are sold within 1 year
Benchmark: Nifty 500 TRI
