Kotak Mutual Fund Launches Kotak Services Fund to Tap India’s Expanding Services Economy

Written by Intern Swara Bodke || Team Allycaral

Kotak Mahindra Asset Management Company Ltd. has announced the launch of the Kotak Services Fund, an open-ended equity scheme following the services theme. The New Fund Offer (NFO) opens on February 4, 2026, and closes on February 18, 2026, providing investors an opportunity to participate in India’s fast-growing services sector, which contributes nearly 55 per cent to the country’s Gross Value Added (GVA) and employs about 31.5 per cent of the workforce.
India’s services economy spans a wide range of sectors including consumer services, telecom, healthcare, logistics, financial services, information technology, power, and oil and gas, many of which are scaling rapidly and unlocking multiple structural growth drivers for long-term investors.
The Kotak Services Fund seeks to capture this opportunity through a disciplined investment approach anchored in Growth at Reasonable Price (GARP) and a bottom-up Business-Management-Value (BMV) framework. The fund will invest across market capitalisations, focusing on quality businesses with strong cash flows, scalable business models, and long-term compounding potential.

Commenting on the launch, Mr. Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company Ltd., said India’s services economy is undergoing a structural transformation driven by rising incomes, increased digital adoption, and expanding urbanisation. He added that these forces are reshaping consumption patterns and access to essential services, and the fund aims to capture evolving opportunities within the services ecosystem to deliver long-term value to investors.
Mr. Rohit Tandon, Fund Manager for the Kotak Services Fund, said the services theme offers a blend of stability and growth across consumption-driven and export-driven segments. He noted that the sector presents a compelling combination of resilience and scalability, and the fund’s portfolio construction will focus on companies capable of sustaining margins, upgrading business models, and deploying capital prudently for long-term wealth creation.
The fund is being launched at a time when service-oriented enterprises are redefining how households, businesses, and institutions operate. With evolving customer expectations and advancements in service delivery models, the sector continues to witness strong growth driven by specialisation, technology-enabled processes, and operational efficiency.
The NFO offers a minimum investment of ₹1,000 and in multiples thereafter during the offer period. The scheme is suitable for investors seeking long-term capital appreciation through a diversified portfolio of companies engaged in service-oriented businesses, as per the product suitability disclosures.