Kotak Active Momentum Fund NFO -Powered by Earnings Momentum Review
- Jai prakash
- Jul 30
- 3 min read
📘 Introduction
In the world of equity investing, earnings growth is one of the most powerful long-term wealth creators. Yet, identifying these growth opportunities consistently — and acting without bias — remains a challenge. Enter Kotak Active Momentum Fund, a newly launched thematic equity scheme that aims to eliminate emotion-driven decision-making and instead, harness a quantitative model that captures companies with strong and improving earnings momentum.
🔍What is Kotak Active Momentum Fund?
Kotak Active Momentum Fund is an open-ended thematic equity fund that invests in companies exhibiting sustained earnings growth. It leverages Kotak Mutual Fund’s Enhanced Earnings Factor Model, a data-backed strategy that systematically selects fundamentally strong companies with proven performance indicators.
Key Features:
Fully model-driven selection — minimizes emotional bias
Focuses on companies with accelerating earnings and positive surprises
Avoids weak governance, high-debt, newly listed, or illiquid stocks
Seeks to deliver long-term capital appreciation
🎯 Investment Objective
To generate long-term capital growth by investing in equity and equity-related securities of companies demonstrating strong earnings momentum, selected through a structured and disciplined quantitative model.
⚙️ Investment Strategy
Stock Selection Based On:
Rising earnings per share (EPS)
Positive earnings revisions and upgrades
Momentum in stock performance driven by earnings surprise
Exclusions:
Companies with poor governance standards
Highly leveraged balance sheets
Illiquid or recently listed companies (less than 1 year)
Periodic rebalancing using predefined quantitative filters
Option to invest up to 20% in other equity/debt instruments for liquidity and balance
📈 Back-Tested Performance (Jan 2014 – Jun 2025)
Strategy / Index | CAGR (%) |
Kotak Enhanced Earnings Model | ~24% |
Nifty 500 TRI | ~16% |
Nifty 500 Momentum 50 TRI | ~23% |
Note: The above figures are based on back-tested data and intended for illustrative purposes only. Actual results may vary.
📊 Asset Allocation
Asset Class | Minimum | Maximum |
Equity & Equity-related (Momentum Theme) | 80% | 100% |
Other Equities | 0% | 20% |
Debt & Money Market Instruments | 0% | 20% |
Units of REITs and InvITs | 0% | 10% |
📌Kotak Active Momentum Fund – Key Fund Details
Parameter | Details |
Fund Name | Kotak Active Momentum Fund |
Category | Thematic Equity – Momentum |
Fund Type | Open-ended equity scheme |
NFO Period | July 29, 2025 – August 12, 2025 |
Reopens On or Before | August 28, 2025 |
NFO Price | ₹10 per unit |
Minimum Investment | ₹5,000 (Lump sum), ₹500 SIP (Min 10 installments) |
Additional Purchase | ₹1,000 and in multiples thereafter |
Redemption | ₹1,000 or 100 units or full balance, whichever is lower |
Exit Load | 0.5% if redeemed within 90 days; Nil thereafter |
Benchmark | Nifty 500 TRI |
Risk-O-Meter | 🔴 Very High |
Fund Managers | Mr. Rohit Tandon (Equity), Mr. Abhishek Bisen (Debt) |
Taxation | Equity-oriented (LTCG @12.5% after ₹1.25 lakh annual exemption)* |
Eligible Investors | Resident Individuals, NRIs, HUFs, Corporates, Trusts, etc. |
Taxation subject to prevailing laws. Consult your advisor before investing.
✅ Who Should Consider This Fund?
This fund is suitable for investors who:
Have a long-term investment horizon of 5+ years
Can tolerate short-term volatility for higher growth potential
Believe in data-led, model-based investing
Seek thematic diversification within equity allocations
Are looking to participate in earnings-driven market momentum
🚫 Who Should Avoid This Fund?
You may want to avoid this scheme if:
You seek short-term gains or require steady, fixed returns
You are a first-time investor or have a conservative risk profile
You prefer predictable dividend income
You are uncomfortable with market fluctuations or underperformance during sideways phases
⚠️ Disclaimer
Mutual Fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance may or may not be sustained in the future. Back-tested data shown is for illustration only and does not guarantee future results. Please consult your financial advisor before making investment decisions.
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*Investors should consult their financial advisors if in doubt about whether the product is suitable for them Note: The above information has been sourced from the Scheme Information Document provided by KOTAK MAHINDRA AMC. Read the entire document before investing, Disclaimer: Jaiprakash (ARN/Distributor - 70524; brand name (Vasundhra Investment) is the distributor of the mutual fund. Please consult your investment advisor before investing
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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