Kotak Mahindra AMC launches Kotak Energy Opportunities Fund; check details

The investment objective of Kotak Energy Opportunities Fund is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity-related securities.

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Kotak Energy Opportunities Fund: Kotak Mahindra Asset Management Company has announced the launch of the Kotak Energy Opportunities Fund, an open-ended equity scheme focusing on the energy theme. The new fund offer (NFO) will open on April 3, 2025, and close on April 17, 2025.

 

The investment objective of the Kotak Energy Opportunities Fund is to generate long-term capital appreciation from a portfolio predominantly invested in equity and equity-related securities of companies engaged in energy and energy-related activities, according to the Scheme Information Document (SID).

 

The performance of the scheme will be measured against the Nifty Energy TRI (Total Return Index). The Nifty Energy sector index includes 10 companies from the petroleum, gas, and power sectors. The scheme carries a very high-risk profile, which aligns with its benchmark that also carries a very high risk. 

Nilesh Shah, Managing Director at Kotak Mahindra AMC, said, “With the launch of Kotak Energy Opportunities Fund, we are providing our investors with an entry point into India's fast-evolving energy sector. With rising GDP levels, increasing affluence, and new-age industries, the demand for energy is set to rise.”  Despite rising capacity, Shah believes, India is anticipated to face a power supply deficit. "This demand highlights the necessity for both traditional and new forms of energy, as well as the potential of this sector,” Shah said.

 

Harsha Upadhyaya, Mandar Pawar, and Abhishek Bisen will serve as the fund managers for the Kotak Energy Opportunities Fund.

 

Harsha Upadhyaya, Fund Manager and Chief Investment Officer at KMAMC, said the energy sector plays an integral role in a nation’s growth and has seen profits rise over three times in the past 10 years.

 

“With the rise in energy demand, sectors such as transmission and distribution, smart metering, and smart grid management may see increasing demand. Additionally, traditional energy sources like coal, oil, and gas will continue to see rising demand in India,” he said.

 

Investors can invest a minimum amount of ₹100 and any amount thereafter. According to the SID, no exit load will be charged for redemption/switch-out of up to 10 per cent of the initial investment amount (limit) purchased or switched in within one year from the date of allotment. However, a 1 per cent exit load will apply if units redeemed or switched out exceed the limit within one year from the date of allotment. The exit load will be nil if redeemed on or after one year from the date of allotment.

 

“No exit load will be chargeable for switches made between different plans/options of the scheme,” it added.

 

Kotak Energy Opportunities Fund: Who should invest?

 

According to the SID, Kotak Energy Opportunities Fund is suitable for investors seeking long-term capital growth and investment in a portfolio of predominantly equity and equity-related securities of companies engaged in energy and energy-related activities. Investors should, however, consult their financial experts and tax advisors if in doubt about whether the product is suitable for them.