Team Goemkarponn
Panaji: Kotak Mahindra Asset Management Company Ltd. (Kotak Mutual Fund) has announced the launch of the Kotak Active Momentum Fund, an open-ended equity scheme that follows the momentum investing theme with a distinct focus on earnings growth. The New Fund Offer (NFO) opens for public subscription from July 29 to August 12, 2025. Investors can start with a minimum investment of ₹5,000 and increase in multiples thereafter.
Unlike traditional momentum strategies that primarily track price trends, Kotak’s new fund adopts a more holistic approach—Earnings Momentum. This involves identifying companies that are witnessing strong upward revisions in earnings estimates, supported by positive analyst ratings and robust fundamentals. The fund will target firms with rising earnings per share (EPS), often driven by favorable earnings surprises or analyst upgrades.
The fund is based on an in-house proprietary model that evaluates momentum using a combination of earnings growth, sales performance, and analyst sentiment. From the top 250 stocks by market capitalization, only those that pass strict quality and momentum filters will be selected. The final portfolio will consist of 40 to 50 diversified, high-quality stocks. This dynamic selection will be reviewed and rebalanced periodically to ensure continued exposure to the strongest performers.
Kotak Mutual Fund stated that the Active Momentum Fund aims to give investors a disciplined and research-backed route to participate in emerging market trends. By focusing on what truly drives long-term stock performance—consistent earnings growth and strong fundamentals—the fund offers a robust tool for building equity wealth.
Investors seeking to align their portfolios with companies demonstrating real performance potential may find this offering particularly attractive. However, as with all equity investments, prospective participants are advised to evaluate their risk appetite and consult their financial advisors before investing.
