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NFO Alert: Kotak Mahindra Mutual Fund launches Kotak Healthcare Fund; all you need to know


Kotak Mahindra Mutual Fund has announced the launch of Kotak Healthcare Fund. The scheme was opened for public subscription on November 20, 2023, and will close on December 04, 2023. The scheme reopens for continuous sale and repurchase on or before December 18, 2023.

What type of mutual fund scheme is this?

This is an open-ended equity scheme that invests in pharmaceutical, healthcare and allied sectors. This product is suitable for investors looking for

  • Long term capital growth
  • Investment in a portfolio of equity and equity-related securities predominantly of companies engaged in the pharmaceutical, healthcare and related sectors.

Shibani Kurian, Senior Executive Vice President, KMAMC said, “The fund provides an opportunity for investors to participate in the huge potential of India’s healthcare industry. The sector is undergoing significant change, driven by rising incomes and better health awareness reshaping the way Indians prioritize their health. As incomes rise and health and wellness awareness grows, there is an increasing demand for quality healthcare services and products.”

What is the main objective of investing in this fund?

The scheme aims to achieve long-term capital appreciation by investing in equity and equity-related securities of companies directly or indirectly involved in the pharmaceutical, healthcare and allied sectors. It is important to note that there is no guarantee that the scheme will achieve its objective.

Nilesh Shah, Managing Director, KMAMC said, “We are offering the Kotak Healthcare Fund to give our investors an opportunity to participate in the Indian healthcare sector. India’s healthcare sector is poised for strong long-term growth driven by domestic demand, rising exports, and the shift from unorganized to organized healthcare services. Changing demographics and lifestyles are also expected to drive demand for healthcare. Kotak Healthcare Fund offers investors a way to tap into the structural opportunities in this space.”

How can one invest in this scheme?

Investors can invest under the scheme with a minimum investment amount 5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the scheme’s asset allocation will be as follows:


Indicative allocations (% of total assets)

Risk Profile

minimum amount

Maximum size

Equity related securities and equity of companies engaged in Pharmaceutical, healthcare and allied sectors



Very high

Other securities of equity and equity related companies



Very high

Overseas mutual fund schemes / ETFs / Foreign securities



Very high

Debt and money market securities



Low to Moderate

Units of REITs & InvITs



Very high

Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such healthcare funds, allowing biased investors to benefit from returns that correspond to the total returns of the securities in this particular index. These include:

Mutual Fund House

Name of the Fund

10-year returns (in %)

DSP Mutual Fund

DSP Healthcare Fund

SBI Mutual Fund

SBI Healthcare Opportunity Fund


UTI Mutual Fund

UTI Healthcare Fund


Aditya Birla Solar Life Mutual Fund

Aditya Birla Sun Life Pharmaceutical & Healthcare Fund

ITI Mutual Fund

ITI Pharmaceutical and Healthcare Fund

Mirae Asset Mutual Fund

Mirae Asset Healthcare Fund

ICICI Prudential Mutual Fund

ICICI Pharmaceutical Prudential Healthcare and Diagnostics (PHD) Fund

IDBI Mutual Fund

IDBI Healthcare Fund

Mutual Fund Quantity

Quant Healthcare Fund

LIC Mutual Fund

LIC MF Health Care Fund

HDFC Mutual Fund

HDFC Pharmaceutical and Healthcare Fund

Source: AMFI (As of November 20, 2023)

How will the scheme benchmark its performance?

The performance of the scheme is measured against Nifty Healthcare Index (Total Return Index). The Nifty Healthcare Index is designed to reflect the behavior and performance of healthcare companies. The Nifty Healthcare Index consists of a maximum of 20 tradable companies, which are listed on the exchange. Due to the composition of the aforementioned benchmark, it is most suitable for comparing the performance of the scheme. The trustees reserve the right to change benchmarks in future to measure the performance of the scheme and as per the guidelines and instructions issued by SEBI from time to time.

Are there any in or out loads in this scheme?

There is no “Entry Load” involved in this scheme, which means investors do not have to pay anything to park their earnings in this scheme.Load Exit” is also calculated under

– For redemption/switch out within 30 days from the date of allotment: 1%

– If units are redeemed or extinguished on or after 30 days from the date of allotment: NO

Who will manage this scheme?

Shibani Sircar Kurian, Dhananjay Tikariha, Arjun Khanna, and Abhishek Bisen are the designated fund managers of this scheme.

Is there any inherent risk in the fund?

The scheme is “Very High Risk” according to the details mentioned in the Scheme Information Document and is best suited to investors who are willing to understand that their principal will only be subject to very high risk. However, investors should consult their financial advisers if they are in doubt as to whether the product is suitable for them.

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Updated: 20 November 2023, 03:35 PM IST

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