Kotak Small Cap Fund
Direct · GrowthAI Summary
Kotak Small Cap Fund has delivered strong long-term SIP XIRR of 21.25% over 10Y and 22.82% over 5Y, broadly in line with category averages of 20.82% and 22.86% respectively. Against the NIFTY SMALLCAP 250, the fund shows meaningful long-term alpha of 5.17% (10Y) and 5.99% (12Y), though recent 1Y and 3Y alpha is modest at 0.76% and 0.12%. Lump-sum CAGR has trailed the benchmark over 1Y, 3Y, and 5Y windows, indicating recent underperformance in point-to-point terms.
The fund exhibits a defensive risk profile with beta of 0.73-0.86 across windows and downside capture consistently below upside capture (e.g., 70.21% downside vs 75.97% upside over 10Y), cushioning losses in weak markets. Six drawdown events exceeding 10% reflect inherent small-cap volatility, and the maximum drawdown duration of 806 days with a 226-day recovery highlights the patience required. Calmar ratios of roughly 0.50-0.61 across horizons indicate reasonable but not exceptional risk-adjusted returns.
No individual holdings or sector breakdown data was provided in this dataset, so specific composition insights cannot be stated. The low beta and asymmetric capture ratios suggest the portfolio is positioned more conservatively than a typical small-cap fund, likely with some allocation beyond pure small caps. Investors should review the current factsheet for top holdings and sector concentration before investing.
The fund's SIP XIRR sits close to category averages across most horizons — slightly ahead over 10Y (21.25% vs 20.82%) and 12Y (19.77% vs 19.22%), but slightly behind over 1Y (15.49% vs 17.65%) and 7Y (21.56% vs 21.78%). This suggests mid-pack consistency rather than category leadership. Calendar year returns show wide dispersion, from 74.87% in 2014 to -15.97% in 2018, typical of the small-cap category.
This fund suits investors with a high risk tolerance and a horizon of at least 7-10 years, given the long recovery periods and return volatility inherent to small caps. SIP investors benefit most, as the fund's XIRR consistently exceeds its lump-sum rolling returns, rewarding rupee-cost averaging. It should be a satellite allocation within a diversified portfolio rather than a core holding.
- Strong long-term alpha versus NIFTY SMALLCAP 250, with 5.17% (10Y) and 5.99% (12Y) excess CAGR
- Favorable asymmetry with downside capture (70-76%) consistently below upside capture (76-85%), limiting losses in weak markets
- Low expense ratio of 0.55% for a small-cap fund, supporting net returns
- Recent underperformance: fund CAGR trails the benchmark over 1Y (-2.59% vs -4.99%), 3Y, and 5Y windows, with near-zero recent alpha
- Six drawdowns exceeding 10% and a maximum drawdown duration of 806 days demand high patience from investors
Generated on 26-10-2026, 2:13 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 | ₹12.96 L | 26.3% | -52.5% | 158.2% |
| 3 Years | ₹36.00 L | ₹48.98 L | 21.1% | -22.6% | 61.1% |
| 5 Years | ₹60.00 L | ₹1.04 Cr | 20.5% | -8.9% | 37.1% |
| 7 Years | ₹84.00 L | ₹1.86 Cr | 21.5% | 1.3% | 31.1% |
| 10 Years | ₹1.20 Cr | ₹3.63 Cr | 21.2% | 16.0% | 25.5% |
| 12 Years | ₹1.44 Cr | ₹5.10 Cr | 19.9% | 16.3% | 24.4% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY SMALLCAP 250 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 26.3% | 21.9% | 17.5% | +4.5% |
| 3 Years | 21.1% | 15.2% | 20.1% | +5.9% |
| 5 Years | 20.5% | 14.3% | 22.8% | +6.2% |
| 7 Years | 21.5% | 14.4% | 21.8% | +7.1% |
| 10 Years | 21.2% | 14.0% | 20.8% | +7.2% |
| 12 Years | 19.9% | 13.5% | 19.2% | +6.4% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 24.6% | 16.6% | -28.6% | 144.3% | 0.55 | 2.39 | 79% | — | — |
| 3 Years | 21.5% | 20.5% | -8.9% | 48.9% | 1.26 | 6.43 | 96% | — | — |
| 5 Years | 20.9% | 20.9% | 1.0% | 38.7% | 1.84 | 25.56 | 100% | — | — |
| 10 Years | 20.7% | 20.2% | 15.9% | 26.4% | 5.46 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | -0.69 | 0.85 | 83.1% | 83.0% | -2.9% | -3.7% |
| 3 Years | +0.37 | 0.77 | 76.9% | 75.5% | 10.8% | 11.7% |
| 5 Years | -0.10 | 0.73 | 73.6% | 72.2% | 10.5% | 12.1% |
| 7 Years | +4.76 | 0.77 | 77.5% | 72.3% | 21.4% | 19.7% |
| 10 Years | +5.06 | 0.75 | 75.9% | 70.2% | 16.0% | 12.4% |
| 12 Years | +5.86 | 0.75 | 76.4% | 70.1% | 17.0% | 12.7% |
| 15 Years | +5.22 | 0.75 | 77.6% | 71.4% | 16.5% | 12.8% |