Kotak Quant Fund

Kotak Quant Fund has delivered a 1-year XIRR of 8.75% and a 3-year XIRR of 6.39%, which are significantly below the category averages of 14.1% and 16.82% respectively. However, the fund has outperformed the NIFTY 50 benchmark across all periods, with a 1-year alpha of 7.89% and a 3-year alpha of 8.19%. The fund's 3-year rolling return of 16.09% is also higher than the benchmark's 7.75% CAGR over the same period.

The fund has experienced a maximum drawdown of -22.32% with a duration of 154 days, and it has not yet recovered from this drawdown, indicating elevated risk. The Calmar ratio of 0.72 over 3 years suggests moderate risk-adjusted returns, but the drawdown duration and lack of recovery are concerning. The fund's beta of 1.03 over 3 years indicates slightly higher volatility than the market, while downside capture of 93.54% shows it falls less than the market in downturns.

The fund is a sectoral/thematic fund, which typically implies concentrated exposure to specific sectors or themes, leading to higher concentration risk. While specific top holdings are not provided, the thematic nature suggests limited diversification across sectors. Investors should be aware that such funds can be more volatile and dependent on the performance of the chosen theme.

The fund's XIRR of 6.39% over 3 years is well below the category average of 16.82%, indicating significant underperformance relative to peers. Calendar year returns show inconsistency, with strong gains in 2023 (24.02%) and 2024 (18.67%) but weak returns in 2025 (4.15%) and 2026 (0.89%). This suggests the fund's performance is not consistent and may be highly dependent on market conditions for its thematic focus.

This fund is suitable for investors with a high risk tolerance who are willing to accept significant drawdowns and volatility in pursuit of thematic growth. Given the underperformance and long drawdown recovery, a long-term horizon of at least 5-7 years is recommended to potentially ride out market cycles. Investors should be prepared for periods of underperformance relative to broader equity funds and category peers.

• Consistent outperformance over the NIFTY 50 benchmark across all time periods, with alpha ranging from 1.74% (15Y) to 8.19% (3Y).
• Lower downside capture than upside capture (e.g., 93.54% vs 103.79% over 3Y), indicating the fund loses less in down markets than it gains in up markets.
• Strong calendar year returns in 2023 and 2024, demonstrating the ability to generate high returns in favorable market conditions.

• Significant underperformance versus category averages, with 1Y and 3Y XIRR of 8.75% and 6.39% versus category averages of 14.1% and 16.82%.
• The fund has not recovered from its maximum drawdown of -22.32% after 154 days, indicating prolonged periods of negative returns and potential capital erosion.