Kotak Mahindra Asset Management Company Limited (Kotak Mutual Fund) has announced the launch of the Kotak Nifty Next 50 ETF.
It is an open-ended exchange-traded fund (ETF) that allows investors to take part in India’s growth story by investing in companies that could become future market leaders.
The New Fund Offer (NFO) will open on December 18, 2025, and close on January 1, 2026.
What Is the Nifty Next 50 Index?
The Nifty Next 50 Index consists of 50 companies from the Nifty 100 that are not part of the Nifty 50. These companies are considered to have strong growth potential while still offering the stability of large, established businesses.
The index is well diversified across multiple sectors, which helps reduce the risk of depending too much on any single sector and provides balanced exposure to investors.
Minimum Investment and Valuation
Investors can start investing in this ETF with a minimum amount of ₹5,000 during the NFO. Through a single investment, they can gain exposure to some of India’s biggest upcoming companies.
At present, the Nifty Next 50 Index has a price-to-earnings (PE) ratio of 21.8, which is lower than its 10-year average PE of 29.9.
This indicates that the index is currently relatively attractively valued, making it a potentially good investment opportunity.
Fund Details at a Glance
Fund House: Kotak Mahindra Mutual Fund
Issue Date: December 18, 2025
Closing Date: January 1, 2026
Type: Open-ended
Category: Equity – Large Cap
Minimum Investment: ₹5,000
Lock-in Period: Nil
Exit Load: Nil
Riskometer: Very High
Benchmark: NIFTY Next 50 TRI
Investing in a Diversified Portfolio
The Kotak Nifty Next 50 ETF is a passively managed fund that aims to track and match the returns of the Nifty Next 50 Index.
It offers investors a low-cost and transparent way to invest in a diversified portfolio of companies that have the potential to grow faster over time.
Who Should Consider This ETF?
According to Nilesh Shah, Managing Director of Kotak Mahindra AMC, this ETF is suitable for investors who want exposure to India’s potential future leader companies.
He noted that the Nifty Next 50 Index has delivered better returns than the Nifty 50 TRI over 3, 5, 10, and 20-year periods.
Due to its strong diversification, it is seen as an attractive option for long-term wealth creation. The launch of this ETF also strengthens Kotak’s passive fund offerings.
Fund Management Focus
Devendra Singhal, Fund Manager and Executive Vice President, said that tracking this index will give investors exposure to multiple sectors and companies that may eventually enter the Nifty 50.
His main focus will be on minimizing tracking errors so that investors can fully benefit from the index’s performance.
