Kotak Mutual Fund launches Dividend Yield Fund
Kotak Mahindra Asset Management Company Ltd (KMAMC) has launched the Kotak Dividend Yield Fund, an open-ended equity scheme that will invest predominantly in dividend-yielding stocks. The new fund offer (NFO) opened for subscription on January 5 and will close on January 19, 2026.
The scheme aims to generate long-term capital appreciation and dividend income by investing in a diversified portfolio of companies with a consistent record of paying dividends. Eligible investments include companies that have distributed dividends in at least one of the last three financial years.
Apart from dividend yield, the fund will also consider factors such as cash flows, earnings growth prospects, business fundamentals and management quality. The portfolio will be diversified across sectors to balance income potential with capital growth.
“At Kotak Mutual Fund, we believe dividend-paying companies often reflect sound business practices and a focus on shareholder value,” said Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company Ltd. “The Kotak Dividend Yield Fund is designed to help investors participate in the growth and stability of such businesses. In today’s market, companies with sustainable dividends can add quality and resilience to a portfolio.”
The fund will be managed by Shibani Kurian Sircar, who said the scheme combines disciplined investment processes with deep research. “When businesses consistently generate healthy cash flows and reward shareholders, they create lasting value. We aim to deliver a diversified portfolio that balances potential income with long-term growth,” she said.
Investors can subscribe to the scheme with a minimum investment of Rs 100 and in multiples thereafter during the NFO period. Further details are available on the company’s website at https://www.kotakmf.com/documents/NFO_DYF.
