Kotak Long Term Fund: A Guide for Young Investors
By Business Desk
Explore the Kotak Long Term Fund Direct-Growth. Learn about its NAV, expense ratio, returns, and suitability for young investors seeking long-duration debt investments.
Thinking about long-term debt investments? The Kotak Long Term Fund Direct-Growth, an open-ended long duration debt scheme from Kotak Mahindra Mutual Fund, recently reported a NAV of Rs 11.26 for its Direct plan as of August 28, 2026.
Launched on March 11, 2024, this fund aims to generate income and capital appreciation by investing in debt and money market instruments. It carries a moderate risk profile, making it a consideration for those comfortable with some market exposure.
Key Fund Numbers
- Net Asset Value (NAV) as of August 28, 2026: Rs 11.26
- Expense Ratio for Direct plan: 0.32%
- Fund Size as of July 31, 2026: Rs 61.18 crore
- Trailing Returns (one year): 4.16%
- Returns since launch: 4.95%
The fund is benchmarked against the NIFTY Long Duration Debt Index A-III, providing a clear reference for its performance. You can start investing with a minimum of Rs 100 for lumpsum, additional, or SIP investments, and there is no exit load.
Your money in this fund is primarily allocated to government-backed securities, with 89.29% in such instruments. A significant portion, 72.60%, is specifically invested in Government of India (GOI) securities, indicating a focus on sovereign debt. The fund has an average maturity of 12.74 years and a duration of 11.3199 years.
Understanding Your Tax Implications
Knowing the tax rules for your investments is crucial, especially with recent changes. How your gains are taxed depends on when you invested:
- Investments After April 1, 2023: Any gains you make will be added to your total income and taxed according to your personal income tax slab rate.
- Investments Before April 1, 2023: If you held the investment for less than three years, short-term gains are taxed at your slab rate. For holdings over three years, long-term gains benefit from a 20% tax rate with indexation benefits.
- Dividend Income: If the fund distributes dividends, this income is added to your total income and taxed at your applicable slab rate. A 10% TDS (Tax Deducted at Source) applies if your dividend income exceeds Rs 5,000 in a financial year.
Abhishek Bisen has been managing the Kotak Long Term Fund since February 28, 2024, guiding its strategy within the debt market. This fund offers a structured way to approach long-term debt investing with a transparent fee structure and clear investment focus.