Kotak Mid Cap Fund

Kotak Mid Cap Fund has delivered strong long-term SIP returns, with XIRR of 21.47% over 3Y, 20.29% over 5Y, and 21.00% over 10Y, consistently ahead of category averages of 19.93%, 19.38%, and 19.41% respectively. On a lump-sum basis, the fund has beaten the NIFTY Midcap 150 across most periods, with 12Y CAGR of 19.82% versus the benchmark's 16.94% and alpha of 4.43%. The 1Y XIRR of 27.04% also outpaces the category average of 21.6%, though the 1Y lump-sum CAGR of 9.78% slightly trails the benchmark's 9.86%.

The fund exhibits below-benchmark volatility, with beta ranging from 0.84 to 0.95 and downside capture of 81.51% to 94.64% across periods, indicating it falls less than the index in corrections. The maximum drawdown of just -0.36% with a 46-day duration and 233-day recovery reflects a favorable recent drawdown profile, though 8 drawdown events exceeding 10% highlight the inherent volatility of mid caps. Risk-adjusted returns are solid, with Calmar ratios between 0.55 and 0.71 across horizons and consistently positive alpha of 2.37% to 4.43% over 3Y and longer.

Detailed holdings and sector allocation data were not provided, so concentration and diversification cannot be assessed from this dataset. As a mid cap fund, it must hold at least 65% in mid cap equities, which inherently carries higher concentration risk than large cap or multi cap strategies. Investors should review the latest factsheet for top holdings and sector weights before investing.

The fund has outperformed category average SIP XIRR across every measured horizon, from 27.04% vs 21.6% over 1Y to 20.83% vs 18.82% over 12Y, demonstrating sustained peer leadership. Calendar year returns show strong consistency, with positive returns in 12 of 14 years including standout years of 87.46% in 2014 and 47.7% in 2021. Losses were limited to 2018 (-10.42%) and 2013 (-6.01%), both moderate relative to mid cap category norms.

This fund suits investors with a high risk tolerance seeking long-term wealth creation through mid cap exposure, ideally with a horizon of 5 to 7 years or more to ride out mid cap volatility. Its lower beta and downside capture make it relatively defensive within the mid cap category, but it remains a satellite holding rather than a core conservative allocation. SIP investing is well suited given the fund's strong SIP XIRR track record across all horizons.

• Consistent outperformance versus category average SIP XIRR across all horizons from 1Y (27.04% vs 21.6%) to 12Y (20.83% vs 18.82%)
• Strong alpha versus NIFTY Midcap 150, including 4.43% over 12Y and 3.65% over 7Y, with lower downside capture (81.51% over 12Y)
• Low expense ratio of 0.38% for the direct plan, supporting net returns

• Recent lump-sum performance has lagged the benchmark, with 1Y fund CAGR of 9.78% versus the benchmark's 9.86% and alpha of only 0.08%
• Eight drawdown events exceeding 10% underscore the significant volatility inherent in mid cap investing, requiring a long horizon and strong risk tolerance