Kotak MF launches Energy Opportunities Fund Open for Public Subscription

NFO will be open for public subscription from April 3, 2025, to April 17, 2025

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Chandigarh: Kotak Mutual Fund has launched the Kotak Energy Opportunities Fund, an open-ended equity scheme focused on the energy sector. The new fund offer (NFO) will be open for public subscription from April 3, 2025, to April 17, 2025.

India’s energy sector is projected to expand significantly over the next decade. Rising demand from industries such as electric vehicles, data centers, and urbanisation is driving this growth.

India is also contributing to global energy research, including its role in France’s ITER nuclear fusion project. Despite these advancements, the demand for traditional energy sources like coal, oil, and gas is also expected to grow.

The Kotak Energy Opportunities Fund aims to achieve long-term capital growth by investing in equity and equity-related securities of companies operating in the energy and allied sectors. The fund will target businesses in power, oil and gas, renewable energy, and energy ancillary sectors.

It will adopt a market-cap-agnostic approach, meaning it can invest in companies of all sizes.

Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, stated that the fund provides investors an opportunity to enter India’s evolving energy sector. He highlighted the rising energy demand, pointing to GDP growth, increasing affluence, and the expansion of new-age industries.

He also noted that India may continue to experience a power supply deficit despite capacity expansion. The fund will be managed by Harsha Upadhyaya, Chief Investment Officer at Kotak Mutual Fund, along with Mandar Pawar.

Upadhyaya emphasised that the energy sector is integral to national growth and has seen profits triple over the past decade.

He noted that transmission and distribution, smart metering, and smart grid management are areas expected to see increased demand, alongside continued growth in traditional energy sources.

Investors can participate in the scheme with a minimum investment of ₹100, with no upper limit. The scheme allows both fresh investments and switches from other Kotak Mutual Fund schemes during the NFO period.

Kotak Mahindra Asset Management Company is a wholly owned subsidiary of Kotak Mahindra Bank and manages Kotak Mahindra Mutual Fund. The company had over 70.43 lakh unique folios as of December 31, 2024, and operates in 96 cities with 104 branches.