Kotak Focused Fund

Kotak Focused Fund has delivered strong returns across horizons, with SIP XIRR of 21.54% over 1Y, 17.74% over 3Y, and 18.29% over 5Y, beating category averages of 17.03%, 16.40%, and 15.29% respectively. Against the NIFTY 50, the fund shows consistent alpha, ranging from 14.28% over 1Y to 2.50% over 15Y, with lump-sum CAGRs well above benchmark in every window (e.g., 17.17% vs 7.75% over 3Y). Calendar year returns have also been positive in most years, including 24.26% in 2023 and 35.72% in 2021.

The fund exhibits favorable risk-adjusted behavior, with downside capture consistently below 100% (86.73% over 15Y, 91.32% over 1Y) while upside capture remains near or above 100%, indicating it falls less than the benchmark in weak markets. Beta has declined from around 1.04 over 1Y to 0.91 over longer horizons, suggesting reduced volatility relative to the index over time. Calmar ratios between 0.48 and 0.57 across 1Y to 7Y windows reflect reasonable return per unit of maximum drawdown, though four drawdown events exceeding 10% show meaningful interim losses are possible.

Portfolio composition data such as top holdings and sector allocation was not provided in this dataset, so a detailed assessment of concentration and diversification cannot be made. As a focused fund, it is structurally permitted to hold a maximum of 30 stocks, which implies higher single-stock and sector concentration than diversified multi-cap funds. Investors should review the latest factsheet to evaluate current holdings before investing.

The fund outperforms the category average SIP XIRR across all reported horizons, with the widest gaps over 5Y (18.29% vs 15.29%) and 7Y (16.65% vs 15.17%). Its consistent alpha over benchmark across 1Y through 15Y windows points to durable stock-selection skill rather than a single lucky period. A competitive expense ratio of 0.54% for the direct plan further supports its positioning against peers.

This fund suits investors seeking concentrated equity exposure with a long-term horizon of at least 5-7 years, as its outperformance is most evident over multi-year periods. It is appropriate for investors with moderate-to-high risk tolerance who can tolerate interim drawdowns, given the four drawdown events exceeding 10% and the 231-day recovery from the maximum drawdown. SIP investors benefit particularly, as the fund's XIRR consistently beats its category across horizons.

• SIP XIRR beats category averages across all reported horizons, including 18.29% vs 15.29% over 5Y and 16.65% vs 15.17% over 7Y
• Consistent positive alpha versus NIFTY 50 in every window from 1Y to 15Y, with 9.41% alpha over 3Y
• Favorable capture ratios, with downside capture as low as 86.73% over 15Y while upside capture stays near or above 100% over longer horizons

• As a focused fund holding a concentrated portfolio of up to 30 stocks, single-stock and sector risk is higher than in diversified funds
• Four drawdown events exceeding 10% and a 231-day recovery from maximum drawdown indicate investors must be prepared for meaningful interim losses
• Alpha has narrowed over longer horizons, from 14.28% over 1Y to 2.50% over 15Y, suggesting outperformance versus benchmark is more modest over very long periods