The New Fund Offer (NFO) opened on August 3 and will close on August 17. The scheme will provide investors exposure to the banking sector through a passive investment strategy by replicating the performance of the Nifty Bank Index.
The Nifty Bank Index comprises 14 banking stocks listed on the National Stock Exchange (NSE) and is rebalanced twice a year. The index selects companies based on parameters such as trading frequency, listing history, liquidity and free-float market capitalisation.
The fund will include exposure to both private and public sector banks that form part of the index.
“The banking sector has remained a cornerstone of India’s economic and financial development over the years,” said Nilesh Shah, managing director, Kotak Mahindra Asset Management Company.
Satish Dondapati, fund manager at Kotak Mahindra AMC, said the fund is aimed at investors looking for sector-focused exposure through a passive investment approach, without having to select individual banking stocks.
According to the fund house, the Nifty Bank Total Return Index has delivered a compounded annual growth rate (CAGR) of around 17.8% since inception, compared with 12.3% for the Nifty 50 Total Return Index over the same period.Investors can participate in the NFO with a minimum investment of ₹1,000. The scheme will be subject to market risks, and past performance may not be sustained in the future.
First Published: Aug 3, 2026 4:51 PM IST
