New Delhi: Kotak Mahindra Asset Management Company Limited (KMAMC) has announced the launch of the Kotak Dividend Yield Fund, an open-ended equity scheme that will primarily invest in stocks of companies with a consistent dividend-paying track record. The fund aims to generate long-term capital growth and/or income through dividends by investing in a diversified portfolio of such companies. The New Fund Offer (NFO) opened for subscription on January 5, 2026, and will close on January 19, 2026.
The Kotak Dividend Yield Fund seeks to invest in companies that have paid dividends in at least one of the last three financial years, ensuring a degree of stability and reliability in performance. Along with dividend yield, the scheme will focus on key parameters such as cash flows, earnings growth potential, business fundamentals, and management quality. By emphasizing mature and stable companies and maintaining sectoral diversification, the fund aims to provide investors with a blend of potential dividend income and long-term capital appreciation.
Commenting on the launch, Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company Limited, said that dividend-paying companies often reflect strong business practices and a commitment to shareholder value. He added that the Kotak Dividend Yield Fund has been designed to help investors benefit from the stability and growth of such companies, noting that selecting businesses with sustainable dividend payouts can add quality and resilience to an investment portfolio.
The fund will apply additional filters to assess financial strength and management quality while periodically reviewing the portfolio to capture better dividend opportunities. The portfolio will remain diversified across sectors and aligned with the fund’s stated objectives.
Shibani Kurian Sarkar, Fund Manager of Kotak Dividend Yield Fund, said the scheme follows a disciplined investment process backed by in-depth research to identify companies offering sustainable dividends supported by strong fundamentals. She added that consistent cash flows and shareholder returns often translate into long-term value creation, and the fund aims to strike a balance between income potential and long-term growth through careful stock selection and diversification.
During the NFO period, investors can invest with a minimum amount of ₹100, with no minimum amount required for subsequent investments or switches. More details about the scheme are available on the official Kotak Mutual Fund website.
Investors are advised to consult their financial and tax advisors to determine whether the product is suitable for them. Kotak Mahindra Asset Management Company Limited does not guarantee or promise any returns, including future performance.
