According to the fund house, the scheme will invest primarily in service-oriented companies across sectors such as financial services, IT, telecom, healthcare, logistics, consumer services, power and oil & gas.
Kotak said the strategy will follow a Growth at Reasonable Price (GARP) approach and a bottom-up framework that evaluates business quality, management strength and valuation. The portfolio will invest across market capitalisations rather than restricting itself to large-cap stocks.
KMAMC highlighted that services contribute about 55% to India’s Gross Value Added (GVA) and employ around 31.5% of the workforce, based on official and multilateral data. The fund house said these structural trends formed the backdrop for launching the theme.
Nilesh Shah, Managing Director of KMAMC, said the services economy is changing due to rising incomes, digital adoption and urbanisation, which are altering how households and businesses access services. Fund manager Rohit Tandon added that the scheme will focus on companies with stable margins, scalable business models and consistent capital deployment.
The minimum investment during the NFO has been set at ₹1,000. After the offer period, the scheme will remain open for continuous subscriptions and redemptions, as is standard for open-ended funds.
KMAMC, a wholly owned subsidiary of Kotak Mahindra Bank, manages Kotak Mutual Fund. As of December 31, 2025, the asset manager reported 79.43 lakh unique investor folios across its schemes and said it operates from 120 branches in 108 cities.
