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Over the years, mutual funds have emerged as a dependable and popular way to enhance one's financial situation. It acts as a substitute for more traditional investment options, including real estate, gold holdings, overnight funds, term deposits, and so forth.

With Kotak Mahindra Bank, you can avail the opportunity to grow your wealth through mutual fund investments. And enjoy various services the bank provides like portfolio management, pension fund management and many others.

What are Mutual Funds?

A mutual fund is a collection of funds that are professionally managed by a fund manager, who allocates the funds among stocks, bonds, money market instruments, and/or other securities based on the fund's investment goal.

Advantages of Mutual Fund Investment Online

  • When compared to traditional investment methods, mutual funds offer several advantages and the potential to provide relatively better return potential over extended periods.
  • They make investments in a variety of market items, including securities, bonds, and stocks. Investors should be aware of how mutual fund investments operate before investing.
  • Accessibility, liquidity, simple withdrawals and deposits, among other benefits of mutual funds. Since mutual fund investments, including overnight funds, are handled by experienced fund managers, risks are mostly removed.
  • The goal of mutual fund investments is to provide strong returns. The investors, or unitholders, receive distributions of the fund's profits and losses based on their respective investment shares.

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Mutual Fund Registration Process

  • To obtain the registration form, you can download it from the Kotak website or get it from any Kotak Mahindra Bank branch.
  • Once the Registration Form has been completed and signed by each account holder, turn it in at any Kotak Mahindra Bank branch with the necessary paperwork.

Types of Mutual Funds

In India, mutual funds are categorised according to the asset classes in which they make investments. Here are a few common categories:

  • Equity funds: Equity funds invest primarily in stocks and bonds of publicly traded companies. The decisions regarding mutual fund investing are made mainly by professional experts who invest on behalf of the investor.
  • Debt funds: Debt funds make money by purchasing the debt documents of corporations and the government and lending them money. Based on the length of the loan period and the quality of the supporting documentation, these funds are divided into various categories.
  • Hybrid Funds: A variety of asset classes, such as gold, debt, and equity, are invested in hybrid funds. Hybrid funds are divided into many categories according to how much each asset type they allocate.

Investment Strategies

  • Invest with a specific end goal and purpose in mind.
  • Direct equity investments may still offer room for quick gains, but be cautious as they can quickly deplete funds.
  • Investing in SIPs can be beneficial as it promotes financial discipline and encourages the need for regular savings.
  • Mutual fund investing in lump sums is also beneficial since it allows the investors to invest their long-term savings to gain higher returns.

Top Mutual Funds at Kotak Bank

  • Kotak Flexi Cap Fund: The Kotak Flexi Cap Fund has generated annualised returns of 15.59% over the last five years and 19.21% over the last three. The Kotak Flexi Cap Fund is a member of the Kotak Mahindra Mutual Funds Equity class.
  • Kotak Emerging Equity Fund: The last three years' annualised returns for the Kotak Emerging Equity Fund were 30.45%, while the previous five years' returns were 23.11%. Within the Kotak Mahindra Mutual Funds Equity category is the Kotak Emerging Equity Fund.
  • Kotak Debt Hybrid Fund: The Kotak Debt Hybrid Fund is within the Mutual Funds Hybrid category. It has produced annualised returns of approximately 11.78% and 12.08% during the last three and five years, respectively.

How to Start Investing?

Please follow the following steps while investing in Kotak.

  • Enter your customer ID and password to access Net banking.
  • Select Investments and choose the fund category you want to invest in.
  • Select the Transaction Tab.
  • Click the Buy Tab.

Before investing, ensure you have completed your KFC to make the process smoother and hassle-free.

What factors should I consider before mutual fund investing?

  • Goals: Know your investment goals and invest accordingly. You should not rush during the mutual fund investing
  • Time horizon: Consider evaluating the duration of mutual funds before investing in them. Investing in long-term funds has a higher potential to offer more returns.
  • Risk tolerance: You need to determine your comfort level before investing in a mutual fund. Selecting funds based on your risk tolerance is always advisable.

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Ready to take the next step?

Frequently Asked Questions

What is a Mutual Fund?

Mutual fund (MF) is a mechanism for pooling money by issuing units to the investors and investing funds in securities in accordance with objectives disclosed in the offer document.

How can I purchase or redeem MF?

Purchase - Login to your Net banking account, select the investment tab and proceed with the purchase option. Select category of scheme eg. Equity or Debt.

For mobile banking investors, you need to login to your mobile banking app, select investment option and then purchase the mutual fund.You can also visit the nearest branch if you need assistance in investing in Mutual funds.


Redeem - Login to your Net banking account, select investment tab, and proceed with the redemption option for the required fund transaction.

For mobile banking investors, you need to login to your mobile banking app, select investment option, then select redemption option.

You can also visit the nearest branch if you need assistance to redeem your funds.

What is a Systematic Investment Plan (SIP)?

An SIP allows an investor to invest regularly. One puts in a small amount every month that is invested in a mutual fund. An SIP allows one to take part in the stock market without trying to second-guess its movements

What is an Investment Horizon?

An Investment Horizon refers to the length of time that an investor is willing to hold the portfolio for. Investment horizon can be classified as following 

  • Short term: These are investments with a short horizon of 3 months to 2 years. You plan to use the money for a particular thing soon, for example, creating a reserve fund for unexpected spending.
  • Medium term: Investment with a medium-term horizon of 2-5 years. You know that you will need the money in a few years. It is also possible to choose products that correspond to this horizon
  • Long term: Investments with longer-term horizons – 5 years or more. On retirement, for children to study and other longer-term goals.  

What is KYC and how to get KYC verified for mutual funds investment?

Know Your Client (KYC) registration is mandatory for all investor as per SEBI guidelines. KYC is being centralized through KYC Registration Agencies (KRAs) registered with SEBI. With this, each investor has to undergo the KYC process only once in the securities market and the details would be shared with other intermediaries by the KRAs.

What is Net Asset Value (NAV)?

NAV is the market value per-unit of all the securities held by the fund. NAV determines performance of a particular scheme of a mutual fund. Mutual funds invest the money collected from investors in securities markets. In simple words, NAV is the market value of the securities held by the scheme. 

Since the market value of securities changes every day, the NAV of a scheme also varies on a day-to-day basis. It is mandatory for mutual funds to disclose the NAV on a regular basis. The NAV per unit is the total market value of securities of a scheme minus any liabilities (or expenses), this is then divided by the total number of units of the scheme on any particular date. 
For example, if the total market value of securities of a mutual fund scheme is  ₹210 lakh and liabilities of ₹10 lakh and the mutual fund has issued 10 lakh units to the investors, then the NAV per unit of the fund is ₹20 (i.e.210 lakh – 10 lakh /10 lakh units). 

What is Growth Option?

If you choose the Growth plan of a mutual fund, the fund will compulsorily reinvest any gains earned in the fund. It does not offer any pay-out. Profits made on the portfolio are necessarily ploughed back into the scheme. These growth plans are continuous compounders of your wealth.

What is dividend payout option?

If you choose the dividend payout plan of a mutual fund, a portion of the return/fund is paid out periodically to the investor. The NAV of a dividend fund faces a drop in value to the extent of dividend paid out.

What is Dividend Reinvestment option?

In a dividend reinvestment plan, the mutual fund buys units to the extent of the dividend declared by the fund at the post-dividend NAV and credits units to the account. This results in an increase in the number of units.

What is Purchase price/ Purchase NAV ?

The purchase price / Purchase NAV is the price at which Investor buys the unit of a scheme. Units are allotted to customer on basis of amount invested divided by NAV as on Investment date.

What is repurchase/ redemption NAV?

Repurchase or redemption NAV is the price at which Investor sells the unit (Minus any load if applicable) Exit load is chargeable as a percentage of NAV if investment is redeemed before the Exit load time

What is a load or no-load fund?

A Load Fund is one that charges a percentage of NAV for entry or exit into the fund. The load structure of a scheme has to be disclosed in its offer documents. In accordance with the SEBI circular no. SEBI/IMD/CIR No.4/168230/09 dated 30 June 2009, there is no entry load for any/all mutual fund schemes. 


Exit load is generally charged if the exit is made before a specified time. For example in most equity funds, the exit load is 1% if the exit is before 1 year. Assuming you bought the fund at a NAV of INR 10, after 6 months the NAV is ₹ 11 and you wish to exit from the fund, you will be charged 1% of 11 = 0.11 and your redemption proceeds would be ₹10.89 (₹11-₹0.11)

Currently, in India, the exit load charged is credited to the scheme. The investors should consider the loads while making investment as these affect their returns. However, the investors should also consider the performance track-record of accomplishment and service standards of the mutual fund which are more important. A no-load fund is one that does not charge for entry or exit load. It means the investors can enter the fund/scheme at NAV and no additional charges are payable on purchase or sale of units.


What are Equity Linked Savings Funds (ELSS)?

These schemes provide tax benefit of up to Rs. 1.5 lakhs under Sec 80C of the Income Tax Act, 1961. They are pure equity funds, however they come with a lock-in period of 3 years. Such funds not only help the investor save tax but also participate in equity markets.

What is expense ratio?

Expense ratio is the cost of running and managing a mutual fund, which is charged to the scheme. Expense ratio represents the annual fund operating expenses of a scheme and other charges, expressed as a percentage of the fund’s average daily net assets. Operating expenses of a scheme are administration, management, advertising related expenses, etc.  

What are the different types of mutual fund schemes?

Schemes according to Maturity Period - A mutual fund scheme can be classified into an open-ended scheme or a close-ended scheme depending on its maturity period. 


What are sector specific funds/schemes?

These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents, e.g., Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, Information Technology (IT), Banks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared with diversified funds since they focus on specific sectors. 

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