Kotak ESG Opportunities Fund NFO - Investment Objective, Returns, Risk, Scheme Details

Gaurav Seth
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Gaurav Seth

Kotak ESG Opportunities Fund - NFO

Kotak Mutual Fund has announced the launch of the Kotak ESG Opportunities Fund. The scheme would be investing in companies that adopt the theme of Environment, Social, and Governance (ESG). As per the press release, a composite ESG score based on different factors will be assigned to companies, and exposures will be taken in companies on the basis of their ESG scores. 

The New Fund Offer (NFO) starts from 20th November 2020 and will end on 4th December 2020.

Investment Objective

The investment objective of the scheme is to provide long-term capital appreciation by investing in a portfolio of stocks which are determined on the basis of the Environmental, Social, and Corporate Governance criteria (ESG).

What is ESG Investing ?

ESG investing targets on ‘How companies make money’ rather than just targeting ‘How much money they make’. ESG investing is making investments while incorporating other non-financial parameters like Environment, Social & Corporate Governance. Also known as sustainable investing, ESG investing encourages investments in those companies which follow the ESG theme wherein they take care of the following things:

Environmental empathy: Duty & responsibility towards the environment like making use of renewable energy, doing waste management, etc.

Social Responsibility: Relationships with internal & external stakeholders by making working conditions policy, discrimination policy, etc.

Corporate Governance: Efficiency, conduct & practices of the management like Whistle Blower programs, Board diversity, etc.

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  • The Fund will be investing 80% of its assets in the companies with strong ESG scores.
  • The Fund can also invest in foreign companies with high ESG scores.
  • The Fund aims to identify companies reflecting high strength & stability through their quality ESG practices.
  • The selection of companies for the portfolio will be from the NIFTY 100 ESG universe.
  • The Fund will avoid investing in companies with corporate governance issues or any other ESG related issues. It will avoid any investments in companies with product lines of alcohol, tobacco, weapons etc.

Why invest in Kotak ESG Opportunities Fund ?

Reasons to Invest in Kotak ESG Opportunities Fund:

-  Kotak AMC has signed UNPRI and has become the first Indian AMC to sign this United Nations principles agreement.

- Responsible Investment policies for Equity and Debt investments have been actively implied by Kotak Mutual Fund.

- Kotak Mutual Fund has partnered with Sustainalytics - A company that rates the sustainability of listed companies based on their environmental, social, and corporate governance performance.

- Kotak Mutual Fund is measuring the impact of ESG parameters by doing an active engagement with Investee companies.

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This scheme is suitable for investors who are -

  • Interested in Long term wealth creation.
  • Interested In investing in a diversified basket of stocks determined on the basis of the Environmental, Social and Governance criteria (ESG).
  • Recommend for investing with a time horizon of 5+ years.

Assets Allocation Pattern : 

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)Risk Profile
Equity and Equity related securities80100High
Equity & Equity related instruments of companies as per ESG criteria80100High
Equity and Equity related instruments other than mentioned above 020Moderate to High
Debt and Money market instruments020Low to Moderate
Units that are issued by REITs and INVITs010Moderate to High

About the Scheme : 

Name of the fundKotak ESG Opportunities Fund
Fund launched byKotak Mutual Fund
Asset Management CompanyKotak Mahindra Asset Management Company Limited
Type of schemeAn open ended equity scheme investing on the basis of the Environmental, Social and Governance (ESG) theme.
Investment ObjectiveThe investment objective of the scheme is to generate capital appreciation over the long term through investments in different stocks using ESG theme.
BenchmarkNifty 100 ESG TRI
Entry LoadNot Applicable
Exit Load

1% of applicable NAV - If units are redeemed or switched out within 12 months.

Nil - If units are redeemed or switched out after 12 months.

Minimum Application Amount Rs. 5,000 & in multiple of Rs.1 thereafter
Minimum Additional AmountRs. 1,000 & in multiple of Rs.1 thereafter
STP & SWPAvailable

Capital Appreciation STP

SIP Plus

SIP Pause

Plans Available
  • Regular
  • Direct
Fund ManagersMr. Harsha Upadhyaya and Mr. Arjun Khanna (for investments in foreign securities)

SIP Details

Type Minimum InstallmentsMinimum Amount
Monthly SIP6Rs.1,000 & in multiple of Rs.1 thereafter
Quarterly SIP6Rs. 1,000 & in multiple of Rs.1 thereafter

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