Kotak Contra Fund

Kotak Contra Fund has delivered strong long-term SIP XIRR of 17.65% over 3Y, 17.95% over 5Y, and 18.64% over 10Y, consistently beating the NIFTY 50 on a lump-sum CAGR basis (e.g., 16.84% vs 10.79% over 10Y) with alpha of 6.19% to 10.14% across periods. However, its XIRR trails the category average at every horizon, for example 17.65% vs 18.09% over 3Y and 18.64% vs 18.97% over 10Y. The 1Y XIRR of 19.82% also lags the category's 21.07%, indicating solid but not top-quartile SIP performance among contra peers.

The fund shows a favorable risk profile with a beta below 1 (0.92 to 1.00) and downside capture consistently under 91%, meaning it falls less than the NIFTY 50 in weak markets. It has recorded 8 drawdown events greater than 10%, and while the maximum drawdown of -0.38% recovered in 231 days, investors should expect meaningful interim volatility typical of equity funds. Calmar ratios of roughly 0.44 to 0.50 across horizons reflect reasonable risk-adjusted returns relative to drawdown severity.

Detailed holdings and sector data were not provided in this dataset, so specific top holdings and concentration levels cannot be assessed. As a contra fund, the portfolio typically takes contrarian positions in out-of-favor sectors and stocks, which can lead to meaningful deviations from benchmark composition. Investors should review the latest factsheet to evaluate actual diversification and sector exposure.

Against contra category peers, the fund sits slightly below average on SIP XIRR across all horizons, from 1Y (19.82% vs 21.07%) to 12Y (18.03% vs 18.26%), suggesting mid-pack positioning. Its calendar year record shows strong consistency in positive years, including 36.05% in 2023 and 23.16% in 2024, with only one negative year (-1.69% in 2015) in the last 14. The persistent positive alpha versus the NIFTY 50 across 1Y to 15Y windows underscores genuine benchmark outperformance even if peers have done marginally better.

This fund suits investors with a long-term horizon of 5 to 7+ years who want equity exposure with a contrarian tilt and are comfortable with periods of underperformance while out-of-favor holdings recover. Its below-benchmark downside capture makes it relatively suitable for moderately risk-tolerant investors seeking smoother drawdowns than a pure index fund. It works well as a diversifier alongside large-cap or index funds rather than as a core holding for conservative investors.

• Consistent positive alpha versus NIFTY 50 across all periods, from 5.26% over 15Y to 10.14% over 3Y
• Downside capture below 91% at every horizon, cushioning losses in falling markets
• Strong calendar-year consistency with only one negative year (-1.69% in 2015) in the last 14 years

• SIP XIRR trails the contra category average at every horizon, including 19.82% vs 21.07% over 1Y and 18.64% vs 18.97% over 10Y
• 8 drawdown events exceeding 10% and a 231-day recovery from the maximum drawdown indicate meaningful interim volatility