Kotak ESG Exclusionary Strategy Fund
Direct · GrowthAI Summary
Kotak ESG Exclusionary Strategy Fund has delivered consistent alpha over the NIFTY 50 across most periods, with a 3Y XIRR of 13.94% versus a benchmark CAGR of 7.42% and alpha of 2.63%. However, it trails its category peers on SIP XIRR, with the 3Y figure of 13.94% below the category average of 16.30% and the 5Y figure of 9.86% well below 17.49%. The 1Y XIRR of 5.69% also lags the category average of 10.71%, indicating recent underperformance relative to thematic peers.
The fund shows a beta near 1 (0.98-1.03) with downside capture consistently below 100% (96.25-97.63% over 1-5Y), meaning it has historically fallen slightly less than the NIFTY 50 in weak markets. Three drawdown events exceeding 10% have occurred, with a maximum drawdown recovery taking 375 days, so investors should expect meaningful interim losses. Calmar ratios of 0.64 (3Y) and 0.47 (5Y) suggest moderate risk-adjusted efficiency for a thematic equity product.
As an ESG exclusionary strategy, the fund excludes companies with poor environmental, social, and governance practices, which naturally restricts its investable universe relative to broad-market funds. This screening typically results in a concentrated portfolio tilted toward large-cap, ESG-compliant sectors such as IT, financials, and consumer businesses. No individual holding or sector data was provided, so investors should review the latest factsheet for current concentration levels.
Within the Sectoral/Thematic category, the fund's SIP XIRR of 13.94% (3Y) and 9.86% (5Y) sits below category averages of 16.30% and 17.49% respectively, placing it in the lower half of peers. Its consistency against the NIFTY 50 is stronger, with positive alpha across 1Y, 3Y, and 5Y periods (2.84%, 2.63%, and 1.70%). Calendar year returns show volatility typical of thematic funds, ranging from -9.66% in 2026 to 23.79% in 2021.
This fund suits investors who want thematic equity exposure with an ESG overlay and can tolerate the volatility inherent in a restricted-universe strategy, including drawdowns exceeding 10%. A time horizon of at least 5 years is advisable given the 5Y XIRR of 9.86% and the long 375-day recovery from maximum drawdown. It should be treated as a satellite allocation within a diversified portfolio rather than a core holding, given its underperformance versus category peers.
- Consistent positive alpha versus NIFTY 50 across 1Y, 3Y, and 5Y periods (2.84%, 2.63%, and 1.70% respectively)
- Downside capture below 100% across all measured periods (92.72-97.63%), indicating better-than-benchmark resilience in falling markets
- Reasonable expense ratio of 0.93% for a Direct-plan thematic fund
- SIP XIRR trails category averages across all horizons, with the 5Y figure of 9.86% lagging the category average of 17.49% by a wide margin
- Three drawdown events exceeding 10% and a lengthy 375-day recovery from maximum drawdown highlight significant downside risk
- Weak recent performance with a 1Y XIRR of just 5.69% and a -9.66% calendar year return in 2026
Generated on 14-10-2026, 4:17 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 | ₹12.56 L | 10.7% | -31.0% | 45.9% |
| 3 Years | ₹36.00 L | ₹44.25 L | 14.0% | -1.5% | 27.8% |
| 5 Years | ₹60.00 L | ₹75.38 L | 10.1% | 5.3% | 14.4% |
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 | 10.7% | 14.3% | 10.7% | -3.5% |
| 3 Years | 14.0% | 11.0% | 16.3% | +2.9% |
| 5 Years | 10.1% | 10.4% | 17.5% | -0.3% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 11.1% | 8.3% | -10.0% | 39.5% | 0.35 | 0.85 | 76% | — | — |
| 3 Years | 14.0% | 14.5% | 6.7% | 21.1% | 2.90 | — | 100% | — | — |
| 5 Years | 10.3% | 9.8% | 6.1% | 13.9% | 1.82 | 68.67 | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +3.19 | 1.02 | 100.8% | 97.5% | -6.7% | -9.5% |
| 3 Years | +2.60 | 0.99 | 99.5% | 96.3% | 8.1% | 5.5% |
| 5 Years | +1.71 | 0.98 | 98.5% | 96.2% | 6.4% | 4.6% |
| 7 Years | +0.43 | 0.93 | 94.4% | 92.7% | 8.5% | 8.2% |
| 10 Years | +0.16 | 0.93 | 94.4% | 92.7% | 5.9% | 5.7% |
| 12 Years | +0.06 | 0.93 | 94.4% | 92.7% | 4.9% | 4.7% |
| 15 Years | -0.05 | 0.93 | 94.4% | 92.7% | 3.9% | 3.8% |