Kotak Nasdaq 100 Fund
Finance

Kotak Nasdaq 100 Fund

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The Kotak NASDAQ 100 Fund of Fund (FoF) offers Indian investors an opportunity to gain exposure to the performance of the NASDAQ-100 Index, which comprises 100 of the largest non-financial companies listed on the NASDAQ Stock Exchange. Managed by Kotak Mahindra Asset Management Company, this fund aims to provide long-term capital appreciation by investing in units of overseas ETFs or index funds that track the NASDAQ-100 Index.

Investment Objective and Strategy

The primary objective of the Kotak NASDAQ 100 FoF is to achieve long-term capital growth by investing in units of overseas exchange-traded funds (ETFs) and index funds that replicate the performance of the NASDAQ-100 Index. This strategy allows Indian investors to indirectly invest in global technology giants and other leading companies without the complexities of direct international investments.

Investment Approach

The fund primarily invests in ETFs such as the iShares NASDAQ-100 UCITS ETF and other similar instruments that track the NASDAQ-100 Index. By doing so, it provides investors with diversified exposure to sectors like technology, consumer services, and healthcare, which are heavily represented in the NASDAQ-100 Index.

Fund Details

  • Fund TypeEquity – Fund of Funds (FoF)
  • Benchmark IndexNASDAQ-100 Index
  • Fund ManagerArjun Khanna
  • Minimum Investment₹100 (for SIP)
  • Expense Ratio0.62%
  • Risk ProfileVery High
  • Asset Under Management (AUM)₹3,527.78 Crores
  • Latest NAV (as of 28 Aug 2025)₹21.07 (Direct Growth Plan)

Performance Overview

The Kotak NASDAQ 100 FoF has demonstrated robust performance since its inception. As of 28 August 2025, the fund’s NAV stands at ₹21.07 for the Direct Growth Plan. Over the past three years, the fund has delivered an annualized return of approximately 26.5%, reflecting the strong performance of the underlying NASDAQ-100 Index constituents.

Historical Returns

  • 1-Year Return27.8%
  • 3-Year Annualized Return26.5%
  • Since Inception Return110.39%

These returns underscore the potential of the NASDAQ-100 Index to generate significant capital appreciation, driven by the performance of leading global companies.

Taxation and Exit Load

Investments in the Kotak NASDAQ 100 FoF are subject to capital gains tax based on the holding period

  • Short-Term Capital Gains (STCG)Taxed at 15% if units are sold within three years of investment.
  • Long-Term Capital Gains (LTCG)Taxed at 10% without indexation if units are sold after three years, provided the gains exceed ₹1 lakh in a financial year.

Additionally, the fund may impose an exit load of 1% if units are redeemed within one year from the date of investment. It’s advisable to consult the scheme’s official documents or a financial advisor for the most current information.

Suitability for Investors

The Kotak NASDAQ 100 FoF is suitable for investors seeking exposure to high-growth sectors, particularly technology, and are willing to accept a high level of risk for potentially higher returns. It is ideal for those looking to diversify their portfolios with international assets and benefit from the growth of global leaders in various industries.

Investment Horizon

Given the volatility associated with international markets and the technology sector, a long-term investment horizon of at least 3 to 5 years is recommended. This approach allows investors to ride out market fluctuations and capitalize on the compounded growth of the underlying assets.

How to Invest

Investors can invest in the Kotak NASDAQ 100 FoF through various channels

  • Directly through Kotak Mahindra Mutual Fund’s official website.
  • Via online investment platforms like Groww, Zerodha Coin, Paytm Money, and others.
  • Through financial advisors or distributors who offer mutual fund investment services.

Investing through the Direct Plan ensures lower expense ratios, leading to potentially higher returns over time.

The Kotak NASDAQ 100 Fund of Fund offers Indian investors a convenient and efficient way to gain exposure to the performance of the NASDAQ-100 Index. By investing in leading global companies, particularly in the technology sector, the fund provides an opportunity for long-term capital appreciation. However, potential investors should carefully consider their risk tolerance, investment horizon, and consult with financial advisors to ensure this investment aligns with their overall financial goals.