Kotak Services Fund
Direct · GrowthAI Summary
Kotak Services Fund has delivered modest lump-sum point-to-point CAGRs across all windows (1Y: 1.76%, 3Y: 0.58%, 5Y: 0.35%), consistently ahead of the NIFTY 50, which posted negative CAGRs over the same periods (1Y: -5.83%, 3Y: -1.98%). Alpha is positive in the short term (1Y: +4.32%) but turns negative at longer horizons, declining to -1.31% at 15Y, indicating limited excess return persistence. SIP XIRR data is not available, though category average SIP XIRR of 16.16% (3Y) suggests the sector category has generally rewarded SIP investors.
The fund displays a defensive profile with a low beta of 0.73 against NIFTY 50, capturing only 83.6% of upside and 70.91% of downside moves. Risk metrics indicate a very mild maximum drawdown of -0.07% with a short 22-day drawdown duration and zero drawdown events exceeding 10%, suggesting well-contained近期 volatility. However, the persistent negative long-horizon alpha implies the downside protection has come at the cost of long-term excess return generation.
As a sectoral/thematic fund focused on the services sector, the portfolio is inherently concentrated in a single theme rather than diversified across market segments. Detailed holdings data is not available in this analysis, so individual stock exposure cannot be assessed. Investors should review the latest factsheet to verify current sector allocation and concentration risk.
With a 1Y lump-sum CAGR of 1.76% versus benchmark returns in negative territory, the fund has preserved capital better than the index during a weak market phase. However, because its own SIP XIRR is unavailable, it cannot be directly ranked against category peers whose average SIP XIRR ranges from 10.54% (1Y) to 17.42% (5Y). The fading alpha over longer windows suggests it has not compounded meaningfully ahead of comparable options over extended periods.
This fund suits investors with high risk tolerance who understand sectoral/thematic funds and want tactical, satellite exposure to the services sector, ideally as a small portion of a diversified portfolio given the SEBI-recommended limit on thematic allocations. A time horizon of at least 5-7 years is advisable to ride through sector cycles, since long-horizon returns here have been thin. It is not appropriate as a core holding for conservative or first-time investors.
- Consistently outperformed NIFTY 50 on point-to-point CAGR across all windows from 1Y to 15Y despite the benchmark's negative returns
- Defensive risk profile with low beta of 0.73, downside capture of only 70.91%, and zero drawdown events exceeding 10%
- Positive 1Y alpha of 4.32% with reasonable 0.92% direct-plan expense ratio
- Alpha deteriorates over longer horizons, turning negative from 5Y (-0.50%) through 15Y (-1.31%), signaling weak long-term excess return generation
- Very low long-horizon CAGRs (10Y: 0.17%, 15Y: 0.12%) indicate near-flat lump-sum compounding, and sector concentration adds cyclical risk without holding-level visibility
Generated on 05-11-2026, 3:03 AM. Verify before investing.
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.
Not enough data to compute SIP returns.
Not enough data to compute rolling returns.
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +5.82 | 0.74 | 83.8% | 70.9% | 9.2% | 2.3% |
| 3 Years | +0.73 | 0.74 | 83.8% | 70.9% | 3.0% | 0.8% |
| 5 Years | -0.25 | 0.74 | 83.8% | 70.9% | 1.8% | 0.5% |
| 7 Years | -0.67 | 0.74 | 83.8% | 70.9% | 1.3% | 0.3% |
| 10 Years | -0.98 | 0.74 | 83.8% | 70.9% | 0.9% | 0.2% |
| 12 Years | -1.09 | 0.74 | 83.8% | 70.9% | 0.7% | 0.2% |
| 15 Years | -1.21 | 0.74 | 83.8% | 70.9% | 0.6% | 0.1% |