Kotak Savings Fund: Performance, Investment & Tax Guide

The Kotak Savings Fund Direct – IDCW, an open-ended Ultra Short Duration Debt scheme from Kotak Mahindra Mutual Fund, aims to generate returns through strategic investments in debt and money market instruments.

This scheme focuses on mitigating interest rate risk, offering investors a ‘Low to Moderate’ risk profile as classified under SEBI guidelines. The fund was officially launched on August 7, 2026.

Performance Snapshot

• 1-year trailing return: 6.46%
• 3-year trailing return: 7.24%
• 5-year trailing return: 6.51%
• Cumulative return since inception: 7.38%

Investors can initiate participation with a minimum investment of Rs 100, applicable for initial investments, additional contributions, and Systematic Investment Plans (SIPs). The fund does not impose any exit load.

Tax Framework for Investors

• Capital gains from investments made after April 1, 2023, are added to the investor’s income and taxed at their slab rate.
• For investments made before April 1, 2023, gains redeemed within 3 years are taxed at the slab rate, while those redeemed after 3 years benefit from a 20% tax rate with indexation benefits.
• Dividend income is added to the investor’s income and taxed per their slab, with a 10% TDS applicable for incomes exceeding Rs 5,000 in a financial year.

The Kotak Savings Fund Direct – IDCW is managed by a team comprising Ankit A Pande, Sandeep Tandon, Varun Pattani, and Ayusha Kumbhat.