Mumbai : Kotak Mahindra Asset Management Company Ltd. (“KMAMC”/”Kotak Mutual Fund”) announces the launch of Kotak Nifty Bank Index Fund, an open-ended scheme that seeks to replicate and track the Nifty Bank Index, subject to tracking error. The New Fund Offer (NFO) opens on 3rd August 2026 and closes on 17th August 2026.
The fund offers investors an opportunity to participate in India’s banking sector through a passive investment strategy linked to the Nifty Bank Index which captures the capital market performance of India’s largest and most liquid banking companies. The index comprises of 14 NSE-listed banking stocks and is rebalanced on a semi-annual basis to ensure continued representation of the sector.
The Nifty Bank Index follows a transparent and rule-based methodology for constituent selection. Eligible companies are selected from the banking sector based on factors such as trading frequency, listing history, liquidity and free-float market capitalisation. Preference is also given to companies available in the derivatives segment, with the final constituents selected based on free-float market capitalisation.
Historical data highlights the long-term significance of the sector. The Nifty Bank TRI has delivered a CAGR of approximately 17.8% since inception, compared with 12.3% for the Nifty 50 TRI over the same period1.
Nilesh Shah, Managing Director, Kotak Mahindra AMC Ltd. said, “The banking sector has remained a cornerstone of India’s economic and financial development over the years. Banks have accounted for over 30% of the Nifty 50 index, making them the center to India’s growth story and equity market performance. The Nifty Bank Index’s long-term track record reflects the strength and resilience of the sector over time. Through Kotak Nifty Bank Index Fund, investors can access some of India’s leading banking franchises, enabling focused participation in one of the most influential sectors of the Indian equity market.”
Satish Dondapati, Fund Manager, Kotak Mahindra AMC Ltd. added, “Kotak Nifty Bank Index Fund is designed for investors seeking targeted exposure to India’s banking sector without the complexity of selecting individual stocks. By tracking the Nifty Bank Index, the scheme provides exposure to leading banking franchises across private and public sector banks to achieve long term growth through a passive and disciplined investment approach. Most importantly, this fund gives investors exposure to the banks through a simple, transparent and cost-efficient manner.”
Investors can invest a minimum amount of ₹1,000 during the NFO and any amount thereafter, subject to the terms and conditions specified in the Scheme Information Document (SID).
Past performance may or may not be sustained in future. KMAMC is not guaranteeing or promising any returns/futuristic returns. For more information, please refer to Presentation on Kotak Nifty Bank Index Fund. The performance of the index shown above does not in any manner indicate the performance of the Scheme.
