Hello Readers! 

Kotak Mutual Fund on 20th November 2020, launched its new fund offer for an ESG fund, whose subscription is open from November 20 and will close on December 4. Necessary details related to the new fund offer are given below. Read to know about the new ESG NFO from Kotak MF!

About ESG Funds! 

Funds of this category focus their investment in the stock of companies that do not cause any adverse environmental impact or social risks through its business activities. The fund manager of these funds avoids investing in companies that have their business activities like manufacturing tobacco, alcoholic products or engage in gambling.

As per SEBI (Security Exchange Board of India), ESG funds are placed under the thematic fund category.

About The NFO For An ESG Fund! 

The NFO launched by Kotak MF in the category of ESG fund is popular as or named, Kotak ESG Opportunities Fund. It is a kind of open-ended equity scheme, that follows the Environmental, Social, and Governance theme.

This fund will benchmark its performance against the Nifty 100 ESG TRI index. The index consists of companies that are a part of the Nifty 100 index but based also qualify for the ESG criteria. The weight of each constituent in the Nifty 100 ESG index is calculated based on the ESG score of the company.

To be eligible for the ESG index, stocks should fulfill the following criteria:

  • Stocks should be a part of Nifty 100
  • Companies should have an ESG score
  • Companies with controversy category 4 and 5 will be excluded. The scale goes from 1 to 5 with 1 being the least controversial.
  • Companies manufacturing alcohol, tobacco, controversial weapons, or the ones which engage in gambling operations are excluded.

The new fund offer will be open for subscription, from 20th November 2020 to 4th December 2020. Its subscription will close on 4th December 2020. The minimum purchase amount (including switches) for this fund is fixed as Rs 5000, and in multiples of Rs 1 after that. While the minimum additional investment amount including switched is fixed as Rs 1000 and in multiples of Rs 1 for purchases and Re. 0.01 for switches

The fund is not associated with any kind of exit load; however, a 1% exit load is applicable if more units are redeemed/switched on or before 12 months from the date of allotment of the Unit. In case if the units are redeemed or switched after 12 months from the date of allotment of units, then no exit load is applicable.

The fund has a fixed minimum amount for redemption that is Rs 1000 and fixed minimum units to redeem that is 100 units.

The new fund offer launched by Kotak MF, both the plans that are Regular and Direct Plan with each plan offering all the options, Payout, Dividend, and Reinvestment.

The facilities offered by the new fund offer are SIP (systematic Investment Plan), SWP (Systematic Withdrawal Plan), and STP (Systematic Transfer Plan).

Last but not the least, the fund managers of the new fund offer are Harsha Upadhyaya and Arjun Khanna.

Harsha Upadhyay has a two-decade of experience in fund management and equity research while Arjun Khanna has a 12-year of experience with mutual funds in equity research.

For more details on the New Fund Offer, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.


Happy Investing!


(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee of future returns).