Kotak Dividend Yield Fund-Reg(G)

About Kotak Dividend Yield Fund-Reg(G)

Kotak Dividend Yield Fund-Reg(G) is an open-ended equity mutual fund offered by Kotak Mahindra Mutual Fund. The scheme invests primarily in Dividend Yield equity and equity-related instruments in accordance with SEBI’s classification, with the objective of achieving capital appreciation over the long term.

 

The fund follows a structured investment approach based on fundamental and quantitative research, with portfolio construction guided by a disciplined risk return framework focusing on high quality stocks. It seeks to align investments with prevailing market conditions while adhering to defined risk management practices.

Investment Objective of Kotak Dividend Yield Fund-Reg(G)

As an open-ended scheme, investors may redeem or subscribe units at the NAV of ₹10.02 as of 06 Feb 2026 at the time of the transaction. The scheme is designed for investors with a long-term investment horizon who are comfortable with high risk, and it will form a part of a diversified investment portfolio.

Who should invest Dividend Yield Funds?

Dividend yield funds invest in mature, cash-generating companies that offer relatively high dividend yield. As a result, they tend to be less volatile than mid cap, small cap, and sectoral funds. However, they remain subject to equity market movements.As per SEBI, Dividend Yield Funds should maintain a minimum allocation of 65% in dividend yielding stocks. These funds are suitable for investors with a minimum investment horizon of 5+ years seeking comparatively stable equity exposure.

Benefits of Investing in Kotak Dividend Yield Fund-Reg(G)

Key advantages include:

1. Professional management: Handled by experienced fund managers
2. Diversification: Exposure to multiple securities reduces risk
3. Liquidity: Easy to buy and redeem (subject to exit loads)
4. Accessibility: Can start investing with small amounts
5. Tax efficiency: If redeemed within 12 months, short-term capital gains (STCG) will apply and will be taxed at 20%. If redeemed after 12 months, long-term capital gains (LTCG) will apply and will be taxed at 12.5%.

Things to Consider Before Investing

Before investing in Dividend Yield mutual funds, investors should evaluate:

• Investment objective and time horizon
• Risk tolerance
• Past performance (not a guarantee of future returns)
• Exit load and taxation

Choosing funds that align with your financial goals is more important than chasing short-term returns.

Conclusion

Kotak Dividend Yield Fund-Reg(G) is suitable for investors looking to create wealth while maintaining high risk. Understanding how these funds work, their risks, and their role in a portfolio can help investors make informed investment decisions aligned with their financial goals.