Kotak Mahindra Mutual Fund has introduced a new open-ended mutual fund scheme, the Kotak Quality Overseas Equity Active FoF Direct-Growth, aiming to deliver long-term capital appreciation through a focused overseas equity portfolio, with modest assets under management and low entry thresholds for investors.
Kotak Mahindra Mutual Fund’s Kotak Quality Overseas Equity Active FoF Direct-Growth is a new open-ended fund of funds that was launched on March 25, 2026, and is designed to pursue long-term capital appreciation through overseas equity schemes and exchange-traded funds built around a quality-focused approach. The Economic Times factsheet says the scheme is benchmarked to the MSCI ACWI, while Kotak’s own fund page describes the benchmark as the MSCI World Index TRI, highlighting a difference in how the fund has been presented across published materials.
Kotak says the portfolio is almost fully invested, with about 98.2% in equities and the balance held in cash and cash equivalents, and the scheme has no meaningful allocation shown to debt. As of July 31, 2026, the fund’s asset mix was reported as being concentrated in overseas mutual fund units, with no listed exposure to large-, mid- or small-cap buckets on the factsheet. The strategy is managed by Arjun Khanna and Abhishek Bisen.
The fund remains small but has already drawn a modest asset base. Kotak’s website put assets under management at about ₹390 crore as of July 31, 2026, while ETMoney and Value Research both placed AUM at roughly ₹391 crore around late August. ETMoney also reported a net asset value of ₹11.594 on August 26, 2026, with a total expense ratio of 0.46%, and Value Research listed the same expense ratio.
For investors, the entry point is low: the minimum lump-sum investment is ₹1,000 and the minimum systematic investment plan, or SIP, amount is ₹500. The exit load is 1% on redemptions made within 90 days, with no exit charge thereafter. Tax treatment follows the usual equity-fund rules in India, with short-term gains taxed at 15% if units are sold within a year, while long-term gains above ₹1 lakh are taxed at 10%; dividends are added to taxable income and are subject to withholding tax if they exceed ₹5,000 in a financial year.
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