Kotak Mid Cap Fund

Kotak Mid Cap Fund has delivered strong SIP XIRR across all horizons, with 21.85% over 3Y and 22.02% over 5Y, consistently beating the category average SIP XIRR (19.81% and 20.43% respectively). Against the NIFTY MIDCAP 150, the fund has generated positive alpha over every measured period, from 2.20% over 3Y to 3.92% over 15Y. However, the 1Y picture is weak, with a lump-sum CAGR of -6.13% versus the benchmark's -6.14% and negative alpha of -0.67%.

The fund exhibits a beta below 1 (0.85-0.95) with downside capture consistently below upside capture (e.g., 85.97% vs 80.93% over 15Y), indicating it falls less than it rises relative to the benchmark. Nine drawdown events exceeding 10% reflect the inherent volatility of the mid-cap segment, though the recent maximum drawdown was mild at -0.36% with a 46-day duration. Calmar ratios between 0.55 and 0.70 across horizons suggest reasonable risk-adjusted returns for a mid-cap fund.

Detailed holdings and sector allocation data were not provided in this analysis, so composition insights are limited. As a mid-cap fund, it invests primarily in mid-sized Indian companies and should be assumed to carry meaningful concentration risk typical of the category. Investors should review the latest factsheet for specific top holdings and sector weights.

The fund outperforms the category average SIP XIRR at every horizon, with the widest gap over 12Y (20.53% vs 18.57%). Its consistent positive alpha over 3Y through 15Y periods demonstrates sustained benchmark outperformance rather than a single lucky streak. The sub-1 beta with lower downside capture suggests a relatively defensive posture among mid-cap peers.

This fund suits investors with a high risk tolerance and a horizon of at least 5-7 years, as mid-cap returns are highly cyclical (ranging from -10.42% in 2018 to +87.46% in 2014). It is appropriate as a satellite allocation within a diversified portfolio rather than a core holding. SIP investors benefit most, given the fund's strong SIP XIRR track record versus both benchmark and category.

• SIP XIRR beats category average at every horizon, e.g., 21.85% vs 19.81% over 3Y and 20.53% vs 18.57% over 12Y
• Consistent positive alpha versus NIFTY MIDCAP 150 across 3Y to 15Y periods, peaking at 3.92% over 15Y
• Downside capture consistently below upside capture (e.g., 80.93% vs 85.97% over 15Y), indicating better-than-market loss protection
• Low expense ratio of 0.38% for the Direct plan

• Recent 1Y performance is weak with -6.13% lump-sum CAGR and negative alpha of -0.67% versus the benchmark
• High return volatility typical of mid-caps, with calendar year returns swinging from -10.42% (2018) to +87.46% (2014) and 9 drawdown events exceeding 10%