NFO Alert: Kotak Mutual Fund launches active momentum fund

Kotak Mutual Fund has announced the launch of the Kotak Active Momentum Fund, an open-ended equity scheme following the momentum theme. The fund aims to capture opportunities by identifying stocks with strong earnings momentum, using an in-house proprietary model.

The New Fund Offer (NFO) will open for public subscription on July 29 and close on August 12.

Also Read | Smallcap mutual funds dominate return charts in 5 & 10 years. What’s driving the surge?


Momentum investing typically involves buying stocks with rising prices, anticipating that the trend will continue. However, momentum isn’t limited to price alone. Earnings momentum focuses on stocks with upward earnings revisions and favorable analyst ratings, supported by strong fundamentals, according to a press release by the fund house.

The Kotak Active Momentum Fund targets companies with increasing earnings per share (EPS), driven by analyst upgrades or positive earnings surprises. The proprietary model evaluates momentum using earnings and sales growth, along with analyst ratings, the release said.

The fund will be benchmarked against the Nifty 500 Index TRI and managed by Rohit Tandon (for equity and overseas investments) and Abhishek Bisen (for debt investments).

“Markets are a slave to earnings. Historically, earnings have outperformed price across both bull and bear phases. This enduring pattern is the foundation of our fund. At Kotak Mutual Fund, we’ve developed a model that goes beyond mere price trends,” said Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company.

The fund portfolio will be constructed from the top 250 stocks by market capitalization, applying rigorous filters to exclude weaker candidates. The result is a diversified basket of 40–50 high-quality stocks, dynamically reviewed and rebalanced to capture emerging opportunities.

“We’ve integrated investment strategy with data science to create a fund that captures momentum driven by earnings. The Kotak Active Momentum Fund is built on a simple conviction: when earnings rise and upgrades follow, prices eventually align. Our model captures this with discipline and data. This is not a trend play—it’s an earnings-led opportunity,” said Rohit Tandon, Fund Manager for the Kotak Active Momentum Fund.

The Kotak Active Momentum Fund offers investors a robust tool to participate in momentum with discipline and consistency. It provides a clear, research-backed approach to staying ahead, by investing in what truly drives stock performance.

During the NFO period, investors can invest a minimum of Rs 5,000, and any amount thereafter. For SIP purchases, the minimum amount is Rs 500, subject to a minimum of 10 installments of Rs 500 each.

This product is suitable for investors seeking long-term capital growth through investment in a portfolio predominantly consisting of equity and equity-related securities exhibiting momentum characteristics.