Kotak Nifty 500 Index Fund NFO Opens, Subscription Ends on 19 October

Key Takeaways

• Kotak Nifty 500 Index Fund opened its NFO on 5 October and will accept subscriptions until 19 October 2026. 
• The passive scheme seeks to replicate the composition of the Nifty 500 Index, subject to tracking error. 
• The minimum investment during the new fund offer is ₹1,000. 

Kotak Mutual Fund has opened subscriptions for the Kotak Nifty 500 Index Fund, expanding its passive-fund range with a scheme linked to one of India’s broadest established equity indices. 

The NFO began on 5 October 2026 and closes on 19 October 2026. Kotak Mutual Fund lists the product in its passive-fund range, while the minimum application amount during the offer is ₹1,000. 

The scheme seeks passive exposure to equity and equity-related securities represented in the Nifty 500 Index, with returns intended to correspond broadly with the underlying index before costs and subject to tracking error. 

The Nifty 500 covers companies across the large-, mid- and small-cap segments. Unlike narrower indices that concentrate on a single market-cap bucket, its constituent base represents a wider cross-section of listed Indian equities. 

That breadth also means sector and stock weights will be determined by the index methodology rather than discretionary calls made by an active fund manager. The portfolio will need to adjust as constituents and index weights change. 

Tracking error remains an important distinction between an index and an index fund. While the scheme seeks to replicate its benchmark, fund expenses, cash holdings, transaction costs and the timing of portfolio changes can cause actual scheme returns to differ from the index. 

Kotak Mutual Fund’s website confirms that the new product began its NFO on 5 October, with the subscription window scheduled to remain open for two weeks. 

The launch comes as fund houses continue to add broader passive products alongside established Nifty 50, Nifty Next 50 and factor-based offerings. A Nifty 500 strategy extends passive exposure beyond the biggest companies without dividing allocations into separate large-cap, mid-cap and small-cap index funds. 

The scheme carries a Very High risk classification, reflecting its underlying equity exposure. 

As with other index funds, historical performance of the Nifty 500 represents the performance of the index rather than the realised performance of this newly launched scheme. Actual fund-level performance will begin to develop only after the NFO and subsequent deployment of assets.