Kotak Mutual Fund launches energy opportunities fund; should you invest?

Kotak Mutual Fund has launched the Energy Opportunities Fund, an open-ended equity scheme focused on the energy sector. The New Fund Offer (NFO) opened for subscription on April 3, 2025, and will close on April 17, 2025. This fund aims to generate long-term capital appreciation by investing in companies involved in energy and related activities.
The fund covers both traditional energy sources like oil, gas, and coal, as well as renewable energy such as solar, wind, and hydropower. It also includes ancillary sectors like power transmission, smart grids, and capital goods. India’s growing energy demand, driven by urbanization, electric vehicles, and infrastructure upgrades, makes this sector a promising investment opportunity.
The fund will be managed by Harsha Upadhyaya, Mandar Pawar, and Abhishek Bisen. It is benchmarked against the Nifty Energy Index TRI. Investors can start with a minimum investment of ₹100. However, this thematic fund carries high risk and is suitable for seasoned investors with a long-term horizon.
Kotak Mutual Fund believes the energy sector is integral to India’s growth story, offering significant potential for returns as the country transitions to a more sustainable energy future.