Kotak Short Term Fund: A Guide for New Investors
By Market Desk
Understand the Kotak Short Term Fund Regular-IDCW: NAV, risk, AUM, and tax implications for new investors. Learn about this open-ended debt scheme.
The Kotak Short Term Fund Regular-IDCW, an open-ended short duration debt scheme, offers a Net Asset Value (NAV) of Rs 12.24 as of August 28, 2026. Managed by Kotak Mahindra Mutual Fund, this fund aims to provide reasonable returns while keeping your money liquid. It’s designed to spread investment risk across a diversified portfolio of debt and money market instruments.
This scheme, launched on September 28, 2015, falls under the Debt: Short Duration category and carries a moderate risk profile. It has delivered a 7.27% return since its inception, making it an option to consider for your initial savings.
Key Figures to Know
The fund’s Net Asset Value (NAV) for its IDCW Regular plan stands at Rs 12.24 as of August 28, 2026.
Its Assets Under Management (AUM) reached Rs 14,291.67 crore by July 31, 2026.
The expense ratio for managing the fund is 1.12%, and it has delivered a 7.27% return since its inception.
Starting Your Investment
You can begin investing with a minimum of just Rs 100, whether for a lump sum, additional investment, or a Systematic Investment Plan (SIP).
Be aware of an exit load of 0.25% if you decide to redeem your units within 30 days of investing.
Understanding Fund Performance
Looking at its past performance, the fund reported trailing returns of 4.89% over 1 year, 6.66% over 3 years, and 5.66% over 5 years.
Its portfolio is mainly allocated to NCD & Bonds at 70.99% and Government Backed securities at 20.87%, with an average maturity of 4.56 years.
Your Tax Implications
For investments made after April 1, 2023, any capital gains you earn are added to your income and taxed according to your applicable slab rate.
If you invested before April 1, 2023, gains redeemed within three years are taxed at your income slab rate.
However, if those pre-April 2023 gains are redeemed after three years, you benefit from a 20% tax rate with indexation.
Any dividend income from the fund is added to your total income and taxed at your slab rate, with a 10% TDS applied if the dividend exceeds Rs 5,000 in a financial year.
Who Manages the Fund?
The fund is jointly managed by Abhishek Bisen, who has been with it since November 1, 2022, and Deepak Agrawal, who has served since August 1, 2007.
Knowing these details helps you understand if a short-duration debt scheme like the Kotak Short Term Fund aligns with your financial goals as you navigate your investment journey.