Kotak Banking and Financial Services Fund
Direct · GrowthAI Summary
Kotak Banking and Financial Services Fund has delivered a 1Y SIP XIRR of 11.13% and a 3Y XIRR of 10.68%, modestly ahead of the 1Y category average of 10.72% but well below the 3Y category average of 16.31%. Against the NIFTY 50, the fund shows strong outperformance with a 3Y alpha of 7.07% and a fund CAGR of 11.78% versus the benchmark's 4.9%. Lump-sum rolling returns of 12.79% (1Y) and 14.3% (3Y) indicate decent lump-sum performance over medium-term windows.
The fund carries a beta above 1 (1.12 over 3Y, 1.20 over 1Y), meaning it moves more sharply than the market in both directions, with a 1Y downside capture of 104.91% indicating slightly worse-than-market losses in down phases. It has experienced 2 drawdown events exceeding 10%, and the current maximum drawdown of -0.167% over 40 days has not yet recovered. Calmar ratios of 0.93 (1Y) and 0.86 (3Y) suggest moderate risk-adjusted efficiency relative to drawdown depth.
As a sectoral fund, the portfolio is concentrated in banking and financial services stocks, which provides focused exposure but limits diversification by design. This concentration explains the elevated beta and the fund's sensitivity to interest rate cycles, credit trends, and financial sector regulation. Investors should treat it as a satellite holding rather than a core diversified equity allocation.
The fund beats the category on 1Y SIP XIRR (11.13% vs 10.72%) but trails meaningfully on longer horizons, with the 3Y category average at 16.31% versus the fund's 10.68%. Calendar year returns show reasonable consistency in positive years (27.04% in 2023, 14.13% in 2024, 15.46% in 2025), though 2026 is negative at -4.35%. Persistent underperformance versus category peers over 3Y and beyond suggests the fund has lagged many sector peers in recent SIP cohorts.
This fund suits investors with high risk tolerance who already hold a diversified core portfolio and want tactical, concentrated exposure to India's banking and financial services sector. A time horizon of at least 5 years is advisable given sector cyclicality and the 2 drawdown events exceeding 10%. It should be capped at a small allocation (typically 10% or less of an equity portfolio) due to single-sector concentration risk.
- Consistent positive alpha versus NIFTY 50 across all periods from 1Y to 15Y, including 7.07% over 3Y
- 1Y SIP XIRR of 11.13% exceeds the category average of 10.72%
- Upside capture above 100% in all periods (121.85% over 1Y), showing strong participation in market rallies
- 3Y SIP XIRR of 10.68% trails the category average of 16.31% by a wide margin, indicating peer underperformance
- Beta above 1 with 1Y downside capture of 104.91% means losses can exceed the benchmark in market declines, and 2 drawdowns exceeding 10% have occurred
Generated on 13-10-2026, 3:13 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.87 L | 14.5% | -18.8% | 43.2% |
| 3 Years | ₹36.00 L | ₹42.32 L | 11.1% | 4.0% | 18.4% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 14.5% | 14.3% | 10.7% | +0.3% |
| 3 Years | 11.1% | 11.0% | 16.3% | +0.1% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 15.4% | 14.0% | -1.8% | 32.7% | 1.06 | 6.07 | 99% | — | — |
| 3 Years | 14.3% | 14.5% | 10.9% | 18.1% | 4.86 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +12.36 | 1.18 | 119.8% | 104.9% | -2.4% | -11.4% |
| 3 Years | +6.70 | 1.11 | 108.6% | 100.1% | 11.8% | 5.3% |
| 5 Years | +4.97 | 1.09 | 106.8% | 97.7% | 10.1% | 5.2% |
| 7 Years | +3.64 | 1.09 | 106.8% | 97.7% | 7.1% | 3.7% |
| 10 Years | +2.71 | 1.09 | 106.8% | 97.7% | 4.9% | 2.6% |
| 12 Years | +2.34 | 1.09 | 106.8% | 97.7% | 4.1% | 2.1% |
| 15 Years | +1.99 | 1.09 | 106.8% | 97.7% | 3.3% | 1.7% |