Kotak Mahindra Mutual Fund has launched the Kotak Multi Sector Omni FOF, a new open-ended fund of funds. The NFO opens on 08-09-2026 and closes on 22-09-2026.
It aims to generate long-term capital appreciation by investing in units of equity-oriented, sector-based schemes, both active and passive. There is no assurance the objective will be met.
Investors who like sector investing but don’t want to track and switch between funds themselves may find this worth a look: it hands that decision to the fund manager.
Kotak Multi Sector Omni FOF NFO Details
Fund name | |
Fund type | Open-ended fund of fund scheme |
Category | Equity Oriented FOF (Domestic), Sectoral/Thematic FOF, MultiSector |
Nature of scheme | Invests in equity-oriented, sector-based active and/or passive scheme units |
Benchmark | Nifty 500 TRI |
Fund managers | Devender Singhal (equity portion), Abhishek Bisen (debt portion) |
NFO opens | 08-09-2026 |
NFO closes | 22-09-2026 |
Allotment date | 28-09-2026 |
Minimum investment | Rs 1,000, and any amount thereafter |
Additional investment | Rs 500, and any amount thereafter |
SIP amount | Rs 500 per instalment, minimum two instalments |
NAV | Rs 10 per unit during the NFO |
Stamp duty | Not available |
Entry load | Nil |
Exit load | 0.5% if redeemed or switched out within 30 days of allotment; nil thereafter |
Kotak Mahindra Mutual Fund: AMC Details
AMC name | Kotak Mahindra Asset Management Company Limited |
Assets under management | ₹6.12 lakh crore |
Website | |
Registered office | 27 BKC, C-27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai, 400051 |
Contact number | 1800 309 1490 / 044-4022 9101 |
Source: AMFI India, New fund offer: Kotak Multi Sector Omni FOF
What Has Kotak Mahindra Mutual Fund Launched?
Kotak Multi Sector Omni FOF is an open-ended fund of funds: it does not buy company shares directly. Instead, it buys units of other mutual fund schemes that each focus on a sector, such as banking, technology or healthcare.
A fund of funds is a scheme whose portfolio is made up of other funds rather than individual stocks or bonds. This scheme will hold sector-based schemes that are actively managed (a fund manager picks stocks within that sector) and passively managed (index funds or ETFs tracking a sector index).
Its objective is long-term capital appreciation, pursued by moving money between sector-based underlying schemes as the fund manager’s sector view changes, rather than staying fixed on one theme.
At least 95% of assets go into units of these sector schemes, from Kotak or any other mutual fund; up to 5% sits in debt and money market instruments, or liquid and overnight schemes, mainly for redemptions.
This gives an investor sector diversification through one application. New to mutual funds? See our comprehensive guide to mutual funds in India.
How Does the Kotak Multi Sector Omni FOF Strategy Work?
The fund manager runs this scheme by studying sector trends and adjusting holdings. Broadly:
Step | What happens? |
1 | Studies market conditions to identify sectors set for growth. |
2 | Selects sector-based active and/or passive schemes to hold, from Kotak or any AMC. |
3 | Invests at least 95% of assets in units of these chosen schemes. |
4 | Keeps up to 5% in debt, money market or liquid and overnight schemes for liquidity. |
5 | Each underlying scheme manages its own sector portfolio independently. |
6 | Reviews sector outlook regularly and shifts allocation between schemes. |
7 | Rebalances if allocation drifts outside 95 to 100%, normally within 30 business days. |
8 | Allows units to be bought, sold or switched on any business day at that day’s NAV. |
Let’s Understand Kotak Multi Sector Omni FOF Through an Example
Say the fund manager sees strength in banking and technology. The scheme might then hold a larger share in a banking sector fund and a technology-focused index fund, with a smaller position in a healthcare fund.
If sentiment shifts later, say technology cools while manufacturing improves, the fund manager can trim the technology holding and add to a manufacturing-oriented scheme, without the investor placing any separate orders.
Kotak Multi Sector Omni FOF Portfolio Allocation
The scheme’s normal asset allocation:
Investment | Minimum (%) | Maximum (%) |
Units of equity-oriented, sector-based active and/or passive mutual fund schemes | 95 | 100 |
Debt and money market instruments, and units of liquid and overnight schemes and liquid ETFs | 0 | 5 |
Kotak Multi Sector Omni FOF Investment Strategy
As an actively managed fund of funds, this scheme does not pick individual stocks itself. Its selection process is sector and scheme selection: which schemes to hold, and in what proportion, based on the fund manager’s read of market conditions and sector growth drivers.
Investors bear two layers of cost here: the scheme’s own expense ratio sits atop each underlying scheme’s expense ratio. Its own recurring expenses, over the underlying schemes’ weighted average, cannot exceed two times that average, within the SEBI ceiling of up to 2.00% of daily net assets.
A small portion of assets stays in debt or liquid schemes, mainly to meet redemptions without disturbing sector holdings.
Potential Benefits of Kotak Multi Sector Omni FOF
Potential benefit | Why does it matter? |
One application, multiple sectors | Exposure to several sector schemes without buying each one separately. |
Professional sector rotation | Fund manager decides when to raise or cut sector exposure, based on ongoing research. |
Active and passive mix | Combines active sector funds with passive index or ETF options, depending on the sector. |
Daily liquidity | Being open-ended, units can be bought or sold on any business day at the prevailing NAV. |
Small liquidity buffer | Up to 5% in debt instruments helps manage redemptions smoothly. |
Key Risks in Kotak Multi Sector Omni FOF
Risk | What does it mean? |
Market risk | Underlying scheme values move with the stock market; sector portfolios can be more volatile than diversified equity funds. |
Concentration risk | A downturn in a favoured sector can hurt returns more than in a diversified fund. |
Liquidity risk | Some underlying ETFs may see wider bid-ask spreads or thin trading in stressed markets. |
Who May Consider Kotak Multi Sector Omni FOF?
Investor type | Why it may fit |
Investors who like sector rotation | Gives professional sector selection instead of tracking sectors themselves. |
Long-term investors, 5-year-plus horizon | Underlying schemes are equity-oriented and can be volatile over shorter periods. |
Investors with a diversified core portfolio | Works as a satellite, sector-focused addition, not a first equity investment. |
Investors fine without sector-specific control | The fund manager decides which sectors to hold, not the investor. |
Who May Not Find Kotak Multi Sector Omni FOF Suitable?
Investor type | Why it may not fit |
Investors seeking a broadly diversified equity fund | This scheme’s holdings are sector-focused, not broad-market. |
Investors with a short investment horizon | Sector-based schemes can see sharp swings over 1 to 3 years. |
First-time investors with a low risk appetite | Sector concentration adds variability beyond a diversified fund. |
Investors who want to pick sectors themselves | The fund manager chooses which sector schemes to hold, not the investor. |
Kotak Multi Sector Omni FOF vs Traditional Investment Options
Factor | Fixed Deposit | Debt Fund | Hybrid Fund | Equity Fund | This New Fund |
Return potential | Fixed | Moderate | Moderate | Higher | Higher |
Volatility | None | Low-moderate | Moderate | High | High, sector-concentrated |
Liquidity | Limited, early-exit penalty | High | High | High | High, open-ended |
Horizon | Short-medium | Short-medium | Medium-long | Long | Long |
Suitable investor | Capital safety | Lower-risk debt | Mixed equity-debt | Long-term equity growth | Sector-focused equity exposure |
Kotak Multi Sector Omni FOF Review by Zenith Finserve
Kotak Multi Sector Omni FOF fits investors who want sector-based equity exposure but would rather delegate sector-timing to a fund manager than track several standalone sector funds. It suits a long-term goal, generally five years or more, since the underlying schemes are equity-oriented and sector-concentrated.
Given the sector focus, it reads better as a satellite holding alongside a diversified core portfolio than a first or only equity investment.
Investors should evaluate fit against their own goals and portfolio, rather than the launch alone. Our mutual fund advisory service and investment planning services can help with that.
How Zenith Financial Management Can Help
At Zenith Financial Management, we follow a process driven investment framework. We assess your goals, cash flows, risk profile, time horizon, existing investments, loans and tax situation before suggesting investments. We align our investment suggestions with your financial objectives and review them periodically to keep them suitable as your circumstances change.
Similar NFOs on Zenith
Zenith has covered other fund of funds and sector-themed launches recently:
HDFC Gold Silver Passive FOF NFO: a fund of funds, but built around gold and silver, not equity sectors.
ICICI Prudential Dynamic Asset Allocation Passive FOF NFO: a passive fund of funds shifting between asset classes, not equity sectors.
UTI BSE India Sector Leaders Exchange Traded Fund NFO: a single-sector approach via an ETF, versus this scheme’s multi-sector, fund-of-funds structure.
Kotak Multi Sector Omni FOF NFO: Frequently Asked Questions
What is Kotak Multi Sector Omni FOF?
A Kotak fund of funds investing in equity-oriented, sector-based active and passive scheme units.
When does the Kotak Multi Sector Omni FOF NFO open and close?
08-09-2026 to 22-09-2026.
What is the minimum investment in Kotak Multi Sector Omni FOF?
Rs 1,000 lump sum, or Rs 500 per SIP instalment, minimum two instalments.
What is the NAV of Kotak Multi Sector Omni FOF during the NFO?
Rs 10 per unit.
What does Kotak Multi Sector Omni FOF invest in?
At least 95% in sector-based scheme units; up to 5% in debt, money market or liquid schemes.
Who manages Kotak Multi Sector Omni FOF?
Devender Singhal (equity), Abhishek Bisen (debt).
What is the exit load on Kotak Multi Sector Omni FOF?
0.5% within 30 days of allotment, nil after that.
Can I start a SIP in Kotak Multi Sector Omni FOF during the NFO?
Yes, SIP and switch-in are both available.
Is Kotak Multi Sector Omni FOF NFO good to invest in?
Depends on your goals, horizon and existing portfolio; it suits sector-focused equity exposure delegated to a fund manager.
How is Kotak Multi Sector Omni FOF different from other Kotak fund of funds?
It is Kotak’s only FoF investing specifically in sector-based schemes; others focus on gold, silver, overseas equity or multi-asset allocation.
Kotak Multi Sector Omni FOF review: what should investors know before investing?
Sector diversification through one scheme, sector-rotation left to the fund manager, best used within a long-term, goal-based portfolio.
