Kotak Long Term Fund: New Debt Option for Investors
By Market Desk
Explore the Kotak Long Term Fund Direct-IDCW, a new open-ended debt scheme from Kotak Mahindra Mutual Fund. Moderate risk, potential income & capital appreciation.
If you’re looking into debt investments, the Kotak Long Term Fund Direct-IDCW might be worth exploring. Launched by Kotak Mahindra Mutual Fund on March 11, 2024, this open-ended Long Duration Debt scheme aims to help you generate income or capital appreciation.
Its main goal is to grow your money through smart investments in various debt and money market instruments. This fund could be a good fit if you have a moderate risk appetite and want to diversify your portfolio.
Understanding the Fund’s Key Numbers
As of August 28, 2026, the fund’s Net Asset Value (NAV) stood at Rs 11.26. You’ll also find its expense ratio for the Direct plan quite competitive at 0.32% as of August 20, 2026.
The fund has a substantial Assets Under Management (AUM) of Rs 61.18 crore, recorded on July 31, 2026. What’s more, there’s no exit load, which means you won’t pay a fee if you decide to withdraw your investment later.
Starting Your Investment Journey
A great feature for new investors is the low entry barrier. The minimum investment, whether you choose a lumpsum or a Systematic Investment Plan (SIP), is just Rs 100. This makes it accessible even if you’re starting small with your first paycheck savings.
The fund’s performance is measured against the NIFTY Long Duration Debt Index A-III, providing a clear benchmark. Since its launch, it has delivered a return of 4.95%, with a 4.16% return over the past year.
What’s Inside Your Investment?
Your money in this fund is primarily invested in government-backed securities, which generally offer a degree of stability. This focus helps maintain the fund’s moderate risk profile.
The portfolio maintains an average maturity of 12.74 years and a modified duration of 11.32 years. Understanding these metrics can help you gauge the fund’s sensitivity to interest rate changes.
The Kotak Long Term Fund Direct-IDCW offers a straightforward way to engage with the debt market, especially if you are just beginning your investment journey with a focus on long-term growth and income.