Investment Objective and Approach

The investment objective of the scheme is to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments. The fund has an average maturity floor of around 3 years and a ceiling of around 7 years.

This is an open ended medium term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 years and 4 years. The fund strategy focuses on:

- Investing primarily in debt securities and government bonds

- Maintaining a Macaulay duration between 3-4 years

- Generating regular income through interest payments

- Capital appreciation through bond price movements

- Ideal Investment Horizon: 2.5 years & above

The scheme is classified as having relatively high interest rate risk and relatively high credit risk due to its medium-term nature and debt instrument focus.

Fund Managers

The fund is managed by experienced debt fund specialists:

- Mr. Deepak Agrawal: Mr. Deepak Agrawal has been managing the fund since 22/06/2015

- Mr. Sunit Garg: Mr. Sunit Garg has been managing the fund since 01/11/2022

Deepak Agarwal is a Chartered Account and Company Secretary while also holding a post-graduation degree in Commerce. He became part of the fund management team of KMAMC in November 2006. Prior to that, he was in the research and dealing department where he joined back in December 2002. The top three Kotak Mutual Funds that Deepak Agrawal manages are Kotak Banking and PSU Debt Fund – Growth, Kotak Income Opportunities Fund – Growth, and Kotak Medium Term Fund - Regular Plan – Growth.

Prior to joining Kotak AMC, he was working as a senior credit analyst at French Bank, BNP Paribas.

About the Fund House (AMC)

Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned subsidiary of Kotak Mahindra bank Limited (KMBL), is the Asset Manager for Kotak Mahindra Mutual Fund (KMMF). KMAMC started operations in December 1998.

Key Highlights:

- Leadership: Mr. Nilesh Shah is the Current MD of Kotak Mutual Fund.

- AUM: As of June 30, 2025, we manage an average AUM of ₹5.57 lakh crores.

- Market Position: As of 31 march 2025 Kotak Mutual Fund ranked 5th by AUM among 43 Indian AMC's.

- Investor Base: As of March 31, 2025, Kotak Mutual Fund's AUM stood at ₹4.78 lakh crore (≈US$58 billion), with over 1.31 crore investor folios on record.

Historical Milestones:

- 1998: Kotak Mahindra's entry into the mutual fund business came in December 1998, when Kotak Mahindra Asset Management Company launched its first mutual fund. The inaugural schemes were two gilt funds (government securities funds) – Kotak Gilt Long Term Fund and Kotak Gilt Short Term Fund – which were allotted on 29 December 1998.

- Innovation: It was the first AMC to offer a dedicated gilt fund for investing solely in Government securities.

- Distribution Network: As of March 2025 Kotak Mutual Fund has 100 branches in 80 cities in India. The fund house relies on a large network of empanelled distributors and advisors – over 79,000 distributors as of 2023 (and crossing 99,000 by 2025) – to reach investors even in smaller towns.

The fund house operates under SEBI ('Mutual Funds') Regulations, 1996 and SEBI (Portfolio Manager) Regulations, 1993. Currently, the company offers around 261 schemes catering to the variable risk appetite of investors.

Should I Invest in Kotak Medium Term Fund?

This fund is suitable for investors who:

- Have an investment horizon of 2.5 years or more

- Seek regular income with potential for capital appreciation

- Can tolerate moderate interest rate and credit risk

- Want exposure to medium-duration debt instruments

- Prefer professionally managed debt portfolios over fixed deposits

Risk Considerations: The risk of incurring a loss in these funds over the said time frame is low, but they do not guarantee returns or safety of capital. The fund carries relatively high interest rate risk due to its medium-term nature.

Suitability: Medium duration debt funds are ideal for investors looking to earn better returns than bank fixed deposits while maintaining reasonable safety levels over a 3-4 year investment horizon.

FAQs

What is today's NAV of Kotak Medium Term Fund?

The NAV changes daily based on market movements. You can check the current NAV on the Kotak Mutual Fund website or through Allvest platform for real-time updates.

What is the AUM of Kotak Medium Term Fund?

AUM: ₹ 1,911 Cr. As on 31-May-2025 The fund manages assets worth approximately ₹1,911 crores as of May 31, 2025.

What is the expense ratio of Kotak Medium Term Fund?

The expense ratio of Kotak Medium Term Fund - Regular Plan is 1.58%. Direct plans typically have lower expense ratios compared to regular plans.

What are the returns of Kotak Medium Term Fund since inception?

It has delivered 7.30% returns since inception. Scheme Inception date is 21/03/2014. Past performance doesn't guarantee future results.

What is the minimum SIP amount to invest in Kotak Medium Term Fund?

The minimum SIP amount of Kotak Medium Term Fund - Regular Plan is ₹100. This makes it accessible for investors with different budget levels.

How do I invest in Kotak Medium Term Fund?

You can invest through Allvest platform by selecting the fund, choosing between lump sum or SIP, completing KYC requirements, and making payment online. Alternatively, invest directly through Kotak MF website or authorized distributors.

How to start a SIP in Kotak Medium Term Fund?

To start SIP through Allvest, select Kotak Medium Term Fund, choose SIP option, set amount and frequency, provide bank details for auto-debit, and complete the registration process.

How do I automate an SIP in Kotak Medium Term Fund?

Set up automatic SIP through Allvest by providing standing instruction to your bank. Once configured, the chosen amount will be debited and invested automatically at regular intervals without manual intervention.

How can I withdraw/redeem my investment in Kotak Medium Term Fund?

You can redeem through Allvest platform by selecting the fund, choosing partial or full redemption, specifying units or amount, and submitting the request. Redemption proceeds are typically credited within 1-3 business days.