Kotak Dividend Yield Fund

Kotak Dividend Yield Fund has modestly outperformed the NIFTY 50 across all measured periods, with the fund's CAGR beating the benchmark at every horizon (e.g., 10Y fund CAGR of -0.87% vs benchmark -1.11%). However, performance has been weak in absolute terms, with a 1Y return of -8.37% and negative CAGRs across all windows. XIRR data and category averages cannot be meaningfully compared since the fund's own XIRR is not available in this dataset.

The fund displays a beta of 0.9175, indicating lower volatility than the NIFTY 50, and both upside capture (88.33%) and downside capture (86.93%) are below 100%, showing it loses less than the market in declines but also participates less in rallies. Maximum drawdown is very shallow at -0.12% over a short 40-day duration, though a drawdown event exceeding 10% has occurred historically. Alpha is positive at 0.77% over 1Y but turns slightly negative over longer horizons (e.g., -0.39% at 10Y), suggesting modest underperformance versus a beta-adjusted benchmark over time.

Detailed holdings and sector allocation data are not provided in this dataset, so concentration and diversification cannot be specifically assessed. As a dividend yield fund, the strategy typically favors high-dividend-paying companies, which tends to reduce valuation risk. Investors should review the latest factsheet for top holdings and sector exposure before investing.

Direct like-for-like comparison with the category is limited because the fund's SIP XIRR is unavailable, while the category 10Y average SIP XIRR stands at 17.11%. The fund's consistent outperformance versus the NIFTY 50 across 1Y to 15Y horizons suggests disciplined downside management rather than high absolute alpha. The slightly negative long-term alphas indicate it primarily delivers returns through lower beta rather than superior stock selection.

This fund is suitable for conservative equity investors who prioritize lower downside capture (86.93%) and want a defensive tilt through dividend-focused large-cap-oriented holdings. A long-term horizon of at least 7-10 years is advisable, especially given weak recent absolute returns. Investors should be comfortable that returns may lag in strong bull markets due to sub-90% upside capture.

• Outperformed the NIFTY 50 benchmark across every measured period from 1Y to 15Y, including -8.38% vs -10.56% over 1Y
• Low downside capture of 86.93% with beta of 0.9175, cushioning losses during market declines
• Very shallow maximum drawdown of -0.12% recovered within 40 days in the recent period

• Negative absolute CAGRs across all horizons (e.g., 5Y at -1.74%) indicate weak real return generation
• Alpha turns negative over longer horizons (-0.25% at 5Y to -0.44% at 15Y), showing limited excess return versus beta-adjusted benchmark
• Only one calendar year of returns (2026: -8.37%) is available, limiting assessment of consistency