Kotak Mahindra Asset Management Company Limited (Kotak Mutual Fund) has announced the launch of the Kotak Nifty Next 50 ETF.
It is an open-ended exchange-traded fund (ETF) that allows investors to take part in India’s growth story by investing in companies that could become future market leaders.
The New Fund Offer (NFO) will open on December 18, 2025, and close on January 1, 2026.
The fund tracks the Nifty Next 50 Index, which includes 50 companies from the Nifty 100 that are not part of the Nifty 50.
These companies offer strong growth potential while still providing the stability of large, well-established businesses.
Diversified Portfolio and Investment Opportunity
The Nifty Next 50 Index is well diversified across multiple sectors, reducing the risk of dependence on any single sector and offering balanced exposure to investors.
The ETF is a passively managed fund that aims to match the returns of the Nifty Next 50 Index in a low-cost and transparent manner.
Investors can start investing with a minimum amount of ₹5,000 during the NFO. Currently, the index has a price-to-earnings (PE) ratio of 21.8, which is lower than its 10-year average PE of 29.9.
This indicates that the index is relatively attractively valued, making it a potential investment opportunity.
Fund Details at a Glance
Fund House: Kotak Mahindra Mutual Fund
Issue Date: December 18, 2025
Closing Date: January 1, 2026
Type: Open-ended
Category: Equity – Large Cap
Minimum Investment: ₹5,000
Lock-in Period: Nil
Exit Load: Nil
Riskometer: Very High
Benchmark: NIFTY Next 50 TRI
Who Should Consider This ETF?
Nilesh Shah, Managing Director of Kotak Mahindra AMC, said the ETF is designed for investors who want to invest in India’s potential future leader companies.
He highlighted that the Nifty Next 50 Index has delivered better returns than the Nifty 50 TRI over 3, 5, 10, and 20-year periods,
and its strong diversification makes it suitable for long-term wealth creation. The launch also strengthens Kotak’s passive fund offerings.
Fund Manager and Executive Vice President Devendra Singhal added that tracking this index gives investors exposure to companies across sectors that may eventually become part of the Nifty 50.
His focus will be on minimizing tracking errors so that investors can fully benefit from the index’s performance.
