Kotak Infrastructure and Economic Reform Fund
Direct · GrowthAI Summary
Kotak Infrastructure and Economic Reform Fund has delivered strong SIP XIRR across horizons, with 21.61% over 3Y and 22.01% over 5Y, consistently beating the category average SIP XIRR of 16.22% and 17.45% respectively. It has also outperformed the NIFTY 50 on a lump-sum basis, with a 5Y CAGR of 16.67% versus the benchmark's 4.51% and double-digit alpha across all periods. However, recent calendar year returns have been weak, with -2.72% in 2025 and -0.91% in 2026 so far.
The fund shows favorable downside behavior versus the NIFTY 50, with downside capture improving from 96.45% over 3Y to 75.88% over 12Y, indicating it has historically fallen less than the benchmark. It has experienced 6 drawdown events greater than 10%, and the maximum drawdown lasted 802 days with a 317-day recovery, highlighting the extended pain periods typical of cyclical thematic funds. Calmar ratios between 0.37 and 0.50 across horizons suggest reasonable but not exceptional risk-adjusted returns.
No individual holdings or sector breakdown data was provided, so specific portfolio composition cannot be assessed. As a sectoral/thematic fund focused on infrastructure and economic reform themes, it is inherently concentrated in cyclical sectors such as construction, capital goods, cement, and power. Investors should review the current fact sheet to verify actual sector weights and concentration levels.
The fund outperforms its category peers on SIP XIRR at every horizon, beating the category average by roughly 4-6 percentage points across 1Y to 12Y periods. Long-term lump-sum performance is also strong, with a 15Y CAGR of 15.35% versus the NIFTY 50's 9.23%. This consistency across multiple time windows suggests genuine stock selection skill rather than a single-cycle fluke.
This fund suits aggressive investors with high risk tolerance who understand the cyclicality of infrastructure themes and can tolerate multi-year drawdowns, as evidenced by the 802-day maximum drawdown duration. A time horizon of at least 5-7 years is advisable to ride through sector cycles, and it should be limited to a satellite allocation of 10-15% of the portfolio rather than a core holding. Investors uncomfortable with sharp year-to-year swings, such as the -18.33% in 2018 versus +58.59% in 2021, should avoid thematic exposure.
- SIP XIRR of 21.61% (3Y) and 22.01% (5Y) significantly exceeds category averages of 16.22% and 17.45%
- Strong alpha versus NIFTY 50 across all periods, including 12.01% over 5Y, with downside capture as low as 74.56% over 15Y
- Low expense ratio of 0.69% for a thematic fund, supporting net returns
- Recent performance has turned negative with -2.72% in 2025 and -0.91% in 2026, suggesting the infrastructure cycle may be cooling
- Six drawdown events exceeding 10% and a maximum drawdown lasting 802 days with a 317-day recovery highlight the fund's high cyclicality
Generated on 25-10-2026, 2:20 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 | ₹12.95 L | 24.6% | -61.5% | 135.3% |
| 3 Years | ₹36.00 L | ₹47.85 L | 19.2% | -27.3% | 48.5% |
| 5 Years | ₹60.00 L | ₹96.34 L | 18.6% | -12.5% | 42.4% |
| 7 Years | ₹84.00 L | ₹1.64 Cr | 18.6% | -2.3% | 31.9% |
| 10 Years | ₹1.20 Cr | ₹3.32 Cr | 20.1% | 16.9% | 24.9% |
| 12 Years | ₹1.44 Cr | ₹4.76 Cr | 19.0% | 16.3% | 22.8% |
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 | 24.6% | 14.3% | 10.6% | +10.3% |
| 3 Years | 19.2% | 11.0% | 16.2% | +8.2% |
| 5 Years | 18.6% | 10.4% | 17.4% | +8.2% |
| 7 Years | 18.6% | 10.6% | 16.6% | +8.1% |
| 10 Years | 20.1% | 11.4% | 16.4% | +8.7% |
| 12 Years | 19.0% | 11.3% | 15.8% | +7.7% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 22.8% | 16.8% | -34.4% | 106.2% | 0.56 | 1.87 | 78% | — | — |
| 3 Years | 19.7% | 20.1% | -10.8% | 45.9% | 1.07 | 3.67 | 92% | — | — |
| 5 Years | 18.2% | 18.6% | -2.4% | 37.6% | 1.34 | 9.64 | 99% | — | — |
| 10 Years | 18.7% | 18.0% | 14.3% | 23.4% | 5.87 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +12.48 | 1.07 | 110.1% | 94.1% | -1.6% | -12.7% |
| 3 Years | +8.86 | 1.06 | 106.7% | 96.5% | 14.2% | 5.4% |
| 5 Years | +12.01 | 0.93 | 95.9% | 81.5% | 16.7% | 4.5% |
| 7 Years | +10.74 | 0.82 | 87.9% | 76.2% | 20.1% | 10.0% |
| 10 Years | +5.93 | 0.83 | 86.0% | 78.3% | 15.3% | 10.0% |
| 12 Years | +6.88 | 0.81 | 84.7% | 75.9% | 15.4% | 9.1% |
| 15 Years | +6.69 | 0.79 | 83.8% | 74.6% | 15.3% | 9.2% |