Kotak Consumption Fund
Direct · GrowthAI Summary
Kotak Consumption Fund has consistently outperformed the NIFTY 50 across all long-term periods, with a 3Y lump-sum CAGR of 10.62% versus the benchmark's 4.74% and positive alpha of 5.56% over 3Y. However, its SIP XIRR of 4.56% over 3Y and 6.1% over 1Y trails the category average SIP XIRR of 16.2% and 10.6% respectively, indicating weaker recent performance relative to sectoral/thematic peers. Calendar year returns show volatility, ranging from 28.19% in 2024 to -8.66% in 2026.
The fund exhibits defensive characteristics with a beta of 0.82 and notably low downside capture of 77.08%, meaning it has historically fallen much less than the benchmark in declines. Its maximum drawdown of just -0.21% with a 227-day recovery suggests contained recent loss severity, though two drawdown events exceeding 10% indicate meaningful episodic risk typical of thematic funds. The 1Y Calmar ratio of 0.48 reflects modest risk-adjusted returns in the current period.
No individual holdings data was provided, so specific top positions cannot be assessed. As a consumption-themed fund, the portfolio is concentrated in consumer-facing sectors such as FMCG, retail, autos, and related services, which limits diversification by design. Investors should expect sector concentration risk inherent to thematic mandates.
Against sectoral/thematic peers, the fund underperforms on SIP XIRR, with 3Y XIRR of 4.56% versus the category average of 16.2% — a substantial gap. Its long-term lump-sum record versus the NIFTY 50 is strong, with positive alpha across every window from 1Y to 15Y, though alpha narrows over longer horizons (0.10% at 15Y). Consistency is mixed: strong benchmark-relative results but weak category-relative recent returns.
This fund suits investors with a high risk tolerance and a horizon of at least 5-7 years, given the cyclicality of consumption themes and the episodic drawdowns. It should be treated as a satellite allocation (typically 5-10% of a portfolio) rather than a core holding, since thematic funds can underperform for extended stretches. Investors comfortable with sector concentration and near-term underperformance versus category peers may find its defensive downside profile attractive.
- Consistent outperformance versus NIFTY 50, with positive alpha across all periods and 3Y alpha of 5.56%
- Low downside capture of 77.08% and beta of 0.82, offering better-than-benchmark protection in market declines
- Low expense ratio of 0.57% for a direct plan thematic fund
- SIP XIRR of 4.56% over 3Y significantly lags the category average of 16.2%, signaling weak recent performance versus peers
- Thematic concentration in consumption sectors creates cyclicality risk, evidenced by the -8.66% return in 2026 and two drawdown events exceeding 10%
Generated on 30-10-2026, 2:14 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 | ₹12.37 L | 8.9% | -22.2% | 68.2% |
| 3 Years | ₹36.00 L | ₹38.63 L | 4.5% | 1.7% | 6.3% |
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 | 8.9% | 14.3% | 10.6% | -5.4% |
| 3 Years | 4.5% | 11.0% | 16.2% | -6.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 9.7% | 7.6% | -11.8% | 36.7% | 0.34 | 0.84 | 90% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +2.63 | 0.94 | 88.4% | 85.0% | -8.3% | -12.0% |
| 3 Years | +6.48 | 0.82 | 85.6% | 75.7% | 11.8% | 5.0% |
| 5 Years | +3.28 | 0.82 | 85.6% | 75.7% | 6.9% | 3.0% |
| 7 Years | +1.96 | 0.82 | 85.6% | 75.7% | 4.9% | 2.1% |
| 10 Years | +0.99 | 0.82 | 85.6% | 75.7% | 3.4% | 1.5% |
| 12 Years | +0.63 | 0.82 | 85.6% | 75.7% | 2.8% | 1.2% |
| 15 Years | +0.26 | 0.82 | 85.6% | 75.7% | 2.3% | 1.0% |