Kotak Active Momentum Fund NFO: Combining Earnings Power with Market Trends


Kotak Mahindra Mutual Fund has rolled out a new equity scheme — the Kotak Active Momentum Fund. This fund seeks to harness the strength of earnings momentum, offering investors a smart blend of quantitative precision and active management. The NFO (New Fund Offer) opens from July 29 to August 12, 2025, providing a fresh opportunity to tap into a structured, trend-following equity strategy.

Let’s break down how this fund works, what sets it apart, and who it’s best suited for.

📌 Key NFO Highlights

  • NFO Dates: July 29 – August 12, 2025

  • Initial NAV: ₹10 per unit

  • Minimum Investment: ₹5,000 (lump sum), ₹500 for SIP

  • Exit Load: 0.5% if redeemed within 90 days; nil thereafter

  • Benchmark: Nifty 500 Total Return Index (TRI)

  • Fund Managers: Rohit Tandon & Abhishek Bisen

🔍 What Is It All About?

The Kotak Active Momentum Fund is designed to identify and invest in companies showing strong earnings trends, consistent profit growth, and improving fundamentals. While momentum investing traditionally focuses on stock price movements, this fund shifts the lens toward earnings-based momentum — looking for businesses whose financial performance is steadily accelerating.

It does this through a quantitative framework, enriched by the insights of experienced fund managers who actively review and refine the portfolio.

🧠 Investment Approach and Strategy

Rather than relying solely on past stock price performance, this fund emphasizes:

  • Earnings Acceleration: Companies with rising earnings per share (EPS) and revenue

  • Positive Revisions: Stocks benefiting from upward analyst revisions or improving business outlook

  • Consistent Growth Patterns: A focus on firms with reliable and repeatable earnings performance

  • Smart Diversification: A focused portfolio of 40–50 stocks across sectors and market caps

The fund draws from the top 250 listed companies in terms of market capitalization.

🌟 What Makes It Unique?

  • Earnings-Focused Momentum: Goes beyond price trends to identify stocks backed by improving fundamentals

  • Flexible Sector Allocation: Adapts across industries based on earnings visibility and sector momentum

  • Enhanced Earnings Factor Model: The fund follows a proprietary in-house framework known as the Enhanced Earnings Factor Model, which focuses on companies demonstrating strong and improving earnings profiles.

  • Controlled Risk Exposure: Seeks to reduce noise and volatility by avoiding speculative or weak-performing stocks

👥 Meet the Fund Managers

  • Rohit Tandon: With strong experience in quantitative investing, he brings a structured and disciplined approach to stock selection.

  • Abhishek Bisen: A veteran at Kotak AMC with deep expertise in asset allocation and portfolio construction.

Their combined knowledge ensures the fund is not only rule-based but also nimble and adaptable.

📈 Is It Right for You?

This fund could be a great fit if:

  • You want to invest in companies backed by strong and improving financials

  • You’re comfortable with higher short-term volatility in pursuit of long-term returns

  • You want to diversify your equity portfolio with a momentum-based theme

  • You have an investment horizon of at least 3–5 years

⚠️ Things to Keep in Mind

  • Volatility Risk: The fund may see fluctuations if earnings momentum slows or reverses

  • Turnover Risk: Momentum investing can lead to frequent portfolio changes

  • Thematic Exposure: As a thematic equity fund, it may not suit those looking for broad-market exposure

📋 Quick Summary

Feature Details
NFO Period July 29 – August 12, 2025
Minimum Investment ₹5,000 (lump sum), ₹500 (SIP)
Exit Load 0.5% within 90 days; nil after
Investment Strategy Earnings-driven momentum
Portfolio Size 40–50 stocks
Benchmark Nifty 500 TRI
Fund Managers Rohit Tandon, Abhishek Bisen
Suitable For Medium- to high-risk equity investors

🧾 Final Thoughts

The Kotak Active Momentum Fund introduces a thoughtful new way to participate in equity markets by earnings momentum . It appeals to investors who believe that numbers tell a story — especially when those numbers show a company is growing faster and stronger than the rest.

While this fund carries higher risks typical of thematic and equity strategies, it also offers potential for meaningful outperformance when market conditions align with its philosophy.

As always, consult a financial advisor before making any investment decisions to ensure it aligns with your financial goals and risk appetite.

📢 Disclaimer

Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully before investing. Past performance of similar strategies does not guarantee future returns.

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