Kotak Mahindra Mutual Fund launches a direct plan money market fund with an emphasis on low-maturity, floating-rate securities to offer investors a near-cash management tool with tax-efficient returns, amid varying expense disclosures and a focus on interest-rate risk mitigation.
Kotak Money Market Fund Direct Plan is an open-ended debt scheme from Kotak Mahindra Mutual Fund that was launched on August 7, 2026. According to the fund’s factsheet, its aim is simple: to seek returns by investing in money market instruments with maturities of up to one year. The latest factsheet published by The Economic Times places the scheme’s net asset value at the end of the week, alongside trailing return data, and says the fund carries no exit load.
Kotak’s own fund pages show that the scheme is run by Deepak Agrawal and Manu Sharma. Public fund disclosures put the scheme’s assets at about ₹31,606 crore as of May 31, 2026, while ET Money lists a slightly lower asset base for the direct growth option. The published expense figures also vary across platforms: Kotak’s pages show 0.38% for the broader fund listings, ET Money shows 0.14% for the direct growth plan, and The Economic Times factsheet reports 0.0% on its latest snapshot.
The portfolio is designed to limit interest-rate risk by keeping maturity low. Kotak says the fund invests mainly in floating-rate securities and other money market instruments, and its own factsheet says the average maturity is effectively zero years. In practice, that makes the scheme closer to a short-term cash-management tool than a long-duration debt fund, although credit quality and liquidity still matter.
The tax treatment depends on how the investment is made and when it is redeemed. For investments made after April 1, 2023, any capital gain is added to income and taxed at the investor’s slab rate. For earlier investments, redemptions within three years are also taxed at the slab rate, while redemptions after three years qualify for 20% tax with indexation benefits. Under the dividend option, payouts are also taxed at the investor’s slab rate, and the fund house must deduct 10% tax at source on dividend income above ₹5,000 in a financial year.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
