NFO Alert: Kotak Mutual Fund has launched Kotak Rural Opportunities Fund. This fund focuses on rural growth. It is an open-ended equity scheme. Investments are available from November 6, 2025, to November 20, 2025.
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Kotak Rural Opportunities Fund: Kotak Mutual Fund has announced the launch of the Kotak Rural Opportunities Fund. This is an open-ended equity scheme that tracks rural India and related themes. The scheme will be open to investors from November 6, 2025, to November 20, 2025. The fund aims to enhance investors’ wealth over the long term.
The fund will invest in stocks of companies that are engaged in or benefit from rural development and transformation in India. The benchmark index for this scheme will be the Nifty Rural Index TRI.
Kotak Mahindra issued a statement
Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company Limited (KMAMC), said that rural India is no longer limited to agriculture. It has become a new frontier for India’s development. From financial inclusion to digital connectivity and local manufacturing, rural India is witnessing a major transformation. This change is driven by opportunities, new expectations, and government policies.
Rising incomes and consumption in rural areas are now a key driver of growth. Kotak Rural Opportunities Fund aims to help investors participate in this transformation. Investors will receive a diversified and robust stock portfolio, which will be periodically reviewed and updated to take advantage of new opportunities emerging in the rural economy.
What is the investment strategy?
The objective of this scheme (Mutual Fund) is to generate good returns over the long term. To achieve this, the fund manager will invest the majority of the funds in stocks of companies operating in rural and related areas. These companies have branches, distribution networks, supply chains, raw material procurement, projects, factories, mines, or plants located in rural areas, whether currently operating or under construction. This scheme will adopt an active investment strategy, meaning that buying and selling will be done based on market conditions. The fund manager may also include other industries or stocks from time to time, as per the Nifty Rural Index and AMFI regulations.
Rural India’s economy picks up pace
Rural India is rapidly changing, with nearly 40% of rural people now engaged in work other than agriculture. Since 2018, rural women’s employment has nearly doubled, leading to a rise in the number of dual-income households. Furthermore, more than half of rural expenditures are now on items other than food. This indicates an increase in income and expenditure in rural areas.
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