Kotak Liquid Fund: NAV Rs 1,000.38, Exit Loads Explained

The Kotak Liquid Fund Direct – IDCW, an open-ended liquid debt scheme, commenced operations on August 7, 2026. Managed by Kotak Mahindra Mutual Fund, it targets high liquidity and reasonable returns through investments in money and other short-term debt instruments.

As of August 11, 2026, the Net Asset Value (NAV) for the IDCW option of its Direct plan stood at Rs 1,000.38. The fund is classified under Debt: Liquid, maintaining a moderate risk profile with an average return grade.

Performance Snapshot

The fund has logged a cumulative return of 6.8% since its inception. Trailing returns illustrate its performance across key periods, offering a clear picture for investors.

• One-year trailing return: 6.43%
• Three-year trailing return: 6.97%
• Five-year trailing return: 6.27%

Its Assets Under Management (AUM) is currently Rs 0.0 crore, with an expense ratio of 0.0% for the Direct plan. These figures provide a baseline for assessing the fund’s operational scale and cost efficiency.

Investment and Redemption Structure

Investors can initiate participation with a minimum initial investment of Rs 1,000. Subsequent additional investments and Systematic Investment Plans (SIPs) require a minimum commitment of Rs 500.

An exit load structure applies to redemptions made within the initial six days from investment, designed to manage short-term outflows. The charges decrease progressively based on the holding period.

• Redeemed within 1 day: 0.0070% exit load
• Redeemed within 2 days: 0.0065% exit load
• Redeemed within 3 days: 0.0060% exit load
• Redeemed within 4 days: 0.0055% exit load
• Redeemed within 5 days: 0.0050% exit load
• Redeemed within 6 days: 0.0045% exit load

Tax Implications

Capital gains from investments made after April 1, 2023, are added to the investor’s income and taxed according to their applicable slab rate, irrespective of the investment duration. This streamlines the tax treatment for newer investments.

For investments placed before April 1, 2023, a dual tax regime applies. Gains from units redeemed within three years are included in income and taxed at the slab rate, while gains from units redeemed after three years benefit from a 20% tax rate after indexation.

Dividend income from the fund is also incorporated into the investor’s total income and taxed at their respective slab rate. A 10% Tax Deducted at Source (TDS) becomes applicable if the total dividend income exceeds Rs 5,000 in a financial year.