Description

Kotak Mahindra Mutual Fund launches Kotak Dividend Yield Fund NFO with SIP facility from January 05-19, 2026 on BSE StAR MF Platform with tentative allotment on January 27, 2026.

Summary

Kotak Mahindra Mutual Fund is launching the Kotak Dividend Yield Fund as a New Fund Offer (NFO) with SIP facility on the BSE StAR MF Platform. The NFO will be open from January 05, 2026 to January 19, 2026, with tentative allotment scheduled for January 27, 2026. Six scheme options are available under regular and direct plans with growth and IDCW (Income Distribution cum Capital Withdrawal) variants.

Key Points

  • NFO period: January 05, 2026 to January 19, 2026
  • Scheme: Kotak Dividend Yield Fund (Equity category)
  • Six plan options available: Regular and Direct plans with Growth, IDCW Payout, and IDCW Reinvestment options
  • All schemes have ISINs assigned (INF174KA1YL9, INF174KA1YN5, INF174KA1YM7, INF174KA1YI5, INF174KA1YK1, INF174KA1YJ3)
  • Transactions without client-initiated funds by 9:00 AM on T+1 will be cancelled
  • NFO extended till midnight on January 19, 2026 for lumpsum purchases only
  • SIP/XSIP registration authentication must be completed by clients before 3:00 PM on NFO closure date
  • Pending transactions remain in system until 3:00 PM on last payout day or T+5, whichever is earlier

Regulatory Changes

No regulatory changes introduced. This is a standard NFO launch notification following existing BSE StAR MF Platform procedures.

Compliance Requirements

  • Members must ensure clear funds are available in ICCL Account by 6:00 PM on January 23, 2026
  • Cheques and OTM payments are acceptable during NFO period only if clear funds received in ICCL account by 6:00 PM on January 23, 2026
  • Transactions without client-initiated funds till 9:00 AM on T+1 will be cancelled and reported to RTA/AMC with CC and N flag
  • Switches accepted during NFO period only if funds received before allotment date; funds received on or after allotment date will not be considered
  • SIP/XSIP registrations must be authenticated by clients before 3:00 PM on January 19, 2026

Important Dates

  • January 05, 2026: NFO opening date
  • January 19, 2026: NFO closure date (3:00 PM for SIP/XSIP authentication; extended till midnight for lumpsum purchases)
  • January 23, 2026: Clear funds deadline in ICCL Account (by 6:00 PM)
  • January 27, 2026: Tentative allotment date
  • T+1 day: 9:00 AM - deadline for client-initiated funds (else transaction cancelled)
  • T+5 or last payout day: 3:00 PM - pending transaction deadline

Impact Assessment

Market Impact: Low - This is a routine NFO launch that expands investment options on the BSE StAR MF Platform but does not affect market operations or trading.

Operational Impact: Low to Medium for BSE StAR MF members - Members need to ensure compliance with fund collection timelines and communicate deadlines to clients for NFO participation. The strict fund availability requirements (January 23, 2026 by 6:00 PM) and different cut-off times for lumpsum vs SIP registrations require operational attention.

Investor Impact: Low - Provides new investment opportunity in dividend yield equity strategy through Kotak Mahindra Mutual Fund with both regular and direct plan options across growth and income distribution variants.

Impact Justification

Routine NFO launch notification for mutual fund platform with standard operational procedures for members