NFO Alert: To take advantage of the growth story of the service sector, Kotak Mutual Fund has launched a new thematic fund in the market…
highlights
- Kotak Mutual Fund has launched Kotak Services Fund.
- This NFO is based on the rapidly growing service sector of India.
- The NFO will be open from 4 to 18 February 2026, with a minimum investment of Rs 1,000.
NFO Alert: The role of service sector in the Indian economy is continuously getting stronger and to take advantage of this growth story, Kotak Mutual Fund has launched a new thematic fund in the market. Kotak Mahindra Asset Management Company Limited has announced the launch of Kotak Services Fund, which is an open-ended equity scheme and will be completely focused on the services sector. This fund has been brought keeping in mind those investors who want to participate in India’s long-term service economy growth.
NFO dates and investment opportunity
The New Fund Offer i.e. NFO of Kotak Services Fund will open from 4 February 2026 and will be available for investment till 18 February 2026. Through this scheme, investors will get the opportunity to invest directly in the service sector, which is considered the biggest growth engine of India. At present, the service sector contributes about 55 percent to India’s total Gross Value Added (GVA) and provides employment to about 31.5 percent of the country’s population.
Read full article
Why is India’s service sector special?
India’s service-based economy has changed rapidly in the last few years. Many segments like Consumer Services, Telecom, Healthcare, Logistics, Financial Services, IT, Power and Oil & Gas are continuously expanding. Rising income, digital payments, online platforms and urbanization have given new impetus to the service sector. This is why this sector shows strong prospects for long-term investment.
Investment Strategy of Kotak Services Fund
Kotak Services Fund aims to capitalize on the diverse growth opportunities that exist within the services sector. For this, the fund will adopt a disciplined and research-based investment strategy. In this, the focus will be on companies with growth at reasonable price. Also, business model, quality of management and valuation will be given priority through the bottom-up BMV framework.
Balance of investments in small, mid and large caps
This fund will invest in companies of all three categories, large cap, mid cap and small cap. Special focus will be on those quality businesses which have strong cash flow, whose business model is scalable and which show the potential to deliver stable returns over the long term. This is expected to provide a balance of both growth and stability to the portfolio.
Opportunities arise from changing consumer behavior
Kotak Services Fund has been launched at a time when service-based companies are rapidly changing the way homes, businesses and institutions work. Changing customer expectations, increasing use of technology and operational efficiency have given many companies the opportunity to expand at a lower cost. These companies can lead the growth of the sector in the coming years.
Minimum investment and suitable for which investors
The minimum investment amount in this NFO has been kept at Rs 1,000 and after this investors can invest any additional amount during the offer period. This fund can be considered suitable for investors who want to participate in the long-term growth of the service sector with a thematic approach and have the ability to withstand market volatility over time.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
related news
end of article
