New NFO Launched: Kotak Energy Opportunities Fund Review 2025
Did you hear about the newly launched Kotak Energy Opportunities Fund NFO under the energy mutual funds? Yes, this latest NFO started its subscription on 3rd April and will close on 17th April 2025, so why wait?
This reminds us of a famous saying, "Never invest in a business you cannot understand."
So, keeping in front of this belief, let's start the Kotak energy opportunities fund review to help you conclude whether or not it could be the best NFO 2025 for you.
Let’s start by covering the basic details of this new fund offer.
Kotak Energy Opportunities Fund NFO: Basic Details
Here is the key information on the newly launched NFO by Kotak Mutual Fund in 2025:
| Scheme Name | Kotak Energy Opportunities Fund |
|---|---|
| Issue Open Date | 3rd April 2025 |
| Issue Close Date | 17th April 2025 |
| Category | Equity - Thematic |
| Benchmark | NIFTY Energy Index TRI |
| Minimum Application Amount | Rs.100 |
| Fund Managers | Mr Harsha Upadhyaya & Mr Mandar Panwar |
| Plans & Options | Regular and Direct Plans with Growth and Dividend Options |
Moving on, it is time for you to understand the planning and for that let’s decode the investment philosophy used by it.
Investment Strategy of Kotak Opportunities Fund NFO
The New Fund Offer, the Kotak Energy Opportunities Fund has an investment strategy based on the "BMV model", which stands for:
B: Business
M: Management
V: Valuation
The scheme aims to generate long-term capital by building a diverse portfolio invested in equity and companies that revolve around the energy theme. It will target companies that are engaged in exploration, extraction, production, refining, marketing, distribution, consultation and sale of energy resources.
Likewise, the investment approach is not just limited to sources of energy such as crude oil, natural gas, coal or new energy refers to renewable energy such as hydropower, solar energy and wind but rather includes allied sectors manufacturing electrical equipment for production, transmission and distribution of energy.
Also Read: Top reasons to invest in NFOs in 2025?
Although it seems that the planning is foolproof, it begs the question “Are energy funds a good investment in 2025?” let’s find its answer in the next heading.
Is Energy Fund a Good Investment for You?
The short answer is yes. Why? Well, Energy Mutual Funds is a good investment option for you as it gives exposure to the most important sector that is essential to the economy.
Let's see some strong reasons that will help you make up your mind to invest in the new Kotak energy opportunities fund NFO 2025:
India's fastest-growing energy consumer hub
The rapid growth in energy consumption in India is due to its strong economic growth, urbanization and rising per capita energy consumption. This reliability has made us the third largest producer and consumer of electricity worldwide. See the graph below for data:
Strong Demand with New-age Industries
The industry 4.0 and the manufacturing of new-age technologies like AI, cybersecurity and e-commerce have transformed the investment world by increasing innovation and scalability to help make informed decisions.
Here is a list of electro-intensive industries that are in strong demand:
Increase in Electricity Demand
EVs and data centers can be 16% of incremental electricity demand by 2030. The electricity demand is growing fast with climate-induced heat stresses due to which India's electricity consumption has risen at 9% per annum compared to an average of 5% annually in the preceding decade.
Let's see the rise in demand at various intervals.
Exponential Rise in Power Generation
You will get to see a high rise of up to 90% growth that is driven by the renewable energy sector. Refer to the chart below for data:
Investing via Mutual Funds is a smart way for you to gather long-term wealth in a short span.
Smart Investments, Bigger Returns
What is the Return of Energy Opportunities Fund?
The nifty energy TRI Index has outperformed the nifty 50 TRI and nifty 500 TRI in 6 out of the past 10 years. Take a look below:
| Calendar Year | Nifty 50 TRI | Nifty 500 TRI | Nifty Energy TRI |
|---|---|---|---|
| CY2024 | 10% | 16% | 6% |
| CY2023 | 21% | 27% | 31% |
| CY2022 | 6% | 4% | 17% |
| CY2021 | 26% | 32% | 38% |
| CY2020 | 16% | 18% | 10% |
| CY2019 | 14% | 9% | 13% |
| CY2018 | 5% | -2% | 3% |
| CY2017 | 30% | 38% | 42% |
| CY2016 | 4% | 5% | 21% |
| CY2015 | -3% | 0% | 1% |
Pro Tip: Make your calculation easy with the SIP Calculator within minutes.
The next heading tells you the importance of investing in the Kotak Energy Opportunities Fund, which is based on an energy theme.
Why Should You Consider Investing in the Energy Theme?
Below are the four strong reasons to invest in Kotak energy opportunities fund NFO that revolves around the energy theme:
-
Long term Growth
By investing in this latest NFO based on an energy theme, you will participate in the growing potential of energy and its associated industries.
-
Innovation
This energy theme is more focused on advancing technology and clean energy solutions to benefit from the growing demand of this fast-growing sector.
-
Sustainability
It offers you the chance to invest in sustainable investment opportunities in climate change and green energy initiatives happening across the globe.
-
Policy Reforms
It helps you capitalize on unique market situations like policy reforms like in the Union Budget 2025, a target of adding at least 100 GW of nuclear capacity by 2047.
Must Read: Top 5 Thematic Mutual Funds in 2025 for Long-Term Wealth
Who Should Invest in Kotak Energy Opportunities Fund NFO?
This new fund offer is best suited for the following types of investors:
- Ideal for investors looking for long-term growth in the energy sector.
- Best for investors with a high to very high-risk tolerance.
- Investors should be willing to invest for at least 5 years.
- Consult a financial advisor to check if this fund fits your needs.
- Suitable for those wanting to add a satellite investment (a portfolio construction method to minimize cost) to their main portfolio.
To Conclude Kotak Energy Opportunities Fund Review
To sum up, the Kotak Energy Opportunities Fund review gives a deep insight into why this new fund offer is the best investment for you in 2025. It's perfect for long-term growth and with SIP (Systematic Investment Plan), you can slowly take your wealth to high levels. This is your chance to power up your portfolio for 2025.
