Abhishek Sinha
Kotak Mutual Fund launches Kotak Dividend Yield Fund; NFO open from 5–19 January
Mumbai, 5 January 2026 – Kotak Mahindra Asset Management Company (KMAMC) has launched the Kotak Dividend Yield Fund, an open-ended equity scheme focused primarily on dividend-paying stocks. The fund is designed to pursue long-term capital appreciation and potential dividend income through a diversified portfolio of companies that demonstrate a consistent dividend-distribution record. The New Fund Offer (NFO) will be open for subscription from 5 January 2026 to 19 January 2026.
The scheme targets companies that have paid dividends at least once in the previous three financial years, emphasizing stability and reliability. Stock selection will not rely on dividend yield alone—cash flows, earnings growth outlook, business fundamentals, and management quality will also be key evaluation parameters. The portfolio will be diversified across sectors and reviewed periodically to identify sustainable dividend opportunities aligned with the fund’s mandate.
Nilesh Shah, Managing Director, KMAMC, stated that dividend-payिंग companies often reflect disciplined business practices and a shareholder-first approach, and the new fund seeks to offer investors a mix of quality, resilience, and measured growth potential in the current market environment.
Shibani Kurian Sircar, Fund Manager, said the scheme follows a research-driven and rules-based investment framework, aimed at identifying companies that generate healthy cash flows, maintain strong financial health, and reward shareholders consistently, creating enduring value over time.
Investors can start with a minimum subscription of ₹100 during the NFO period, and can also participate in switches in any amount thereafter. KMAMC has clarified that it does not guarantee or promise any returns, including future or indicative performance outcomes. Investors are advised to seek guidance from financial and tax experts to evaluate product suitability.
About KMAMC: Kotak Mahindra Asset Management Company, a wholly-owned subsidiary of Kotak Mahindra Bank, has been managing mutual fund schemes since 1998. As of September 2023, the fund house served over 5.3 million investor folios across multiple products, operating through a network spanning 90+ cities and nearly 100 branches. It was also the first Indian fund house to introduce a dedicated gilt fund investing solely in government securities.
