Kotak Low Duration Fund

Debt

India Debt Liquid Market

Liquid

Others

Aggressive growth Investor Profile

Investor Profile

1–3 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Kotak Low Duration Fund- Standard Plan-Growth Option invests in short-term bonds, balancing safety with modest growth.

What This Strategy Does

Kotak Low Duration Reg Gr is an India Fund Low Duration strategy which captures India's ₹20 trillion fixed income opportunity through active duration management, deploying capital across corporate and government bonds to achieve benchmark-aligned compounding.

CW Expert Research Notes

Consistent Outperformance

The fund has outperformed its Morningstar category peers in 3 out of the past 12 years, demonstrating resilient downside protection and consistent participation in rising markets.

Disciplined Process

The fund's high information ratio across multiple periods reflects a disciplined, risk-aware investment process that has generated competitive risk-adjusted returns versus peers.

Diversifying Allocation

With a bias towards corporate bonds and limited government exposure, the fund offers a differentiated risk/return profile that could serve as a portfolio diversifier.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

-0.9% AnnuallyAlpha

+6.4% vs +9.9% benchmarkSince Inception

+6.7% vs +6.3% benchmark3Y Annualized

+5.9% vs +6.5% benchmark5Y Annualized

Kotak Low Duration Fund

Benchmark Index

Benchmark Performance Comparison

Kotak Low Duration Fund

FD Returns

Risk Profile

Standard Deviation0.7%

Sharpe Ratio-0.95

Beta1.31

Upside Capture91%

Detailed Risks

Market Risk

Potential recession risks could trigger credit downgrades, impacting fund's debt holdings.

Liquidity Risk

Volatile market conditions could strain liquidity, hindering efficient portfolio rebalancing.

Concentration Risk

Concentrated exposure to Indian financial sector poses idiosyncratic risks.

Specific Strategy Risk

Regulatory changes to interest rates could adversely impact fund's returns.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Provides stability and income generation through exposure to high-quality, short-term debt instruments. This approach aims to mitigate interest rate risk while capturing yield premiums over traditional money market funds. The impact is a portfolio anchor that delivers steady returns with low volatility, suitable for investors seeking capital preservation and liquidity.

Broader Market View

Market Outlook

Equity markets appear to be entering a recovery phase following the recent correction, with consumption and earnings normalization supporting a more constructive outlook. This environment aligns well with the fund's exposure to consumer, financial services, and technology sectors that stand to benefit from improving domestic demand and credit growth trends.

Why This Strategy is Attractive Now

The strategy appears well-positioned to capitalize on the current market dynamics, offering a balanced portfolio of around 70 holdings across consumer cyclicals, defensives, financials, and technology. The presence of established market leaders complemented by moderate risk metrics suggests an attractive risk-adjusted profile aligned with the ongoing recovery phase.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations across a mix of large and mid-cap market segments.

Why it Makes Sense

A Quality Growth approach can provide exposure to secular growth trends while moderating valuation risk, an appealing balance as markets navigate normalization of economic conditions and earnings expectations.

High-Level Investment Process

Sourcing: The investment team appears to cast a wide net across sectors and market capitalizations to identify companies with sustainable competitive advantages, pricing power, and visible growth runways. Selection: Fundamental analysis aims to differentiate between transient and structural growth drivers, emphasizing companies with efficient capital allocation, recurring revenue streams, and reasonable valuations relative to growth prospects. Construction: Portfolio construction suggests an emphasis on prudent diversification with incremental sector over/underweights relative to the benchmark and individual position sizes that balance conviction and risk management.

Portfolio Holdings Overview

SectoralAllocation

Financial Services100%

Top Stock Holdings

CompanySectorAllocation

HDFC Bank LimitedUtilities5.52%

Canara BankUtilities4.13%

7.15% Karnataka Sgs 2031Utilities3.07%

National Bank For Agriculture And Rural DevelopmentUtilities2.96%

Punjab National BankUtilities2.94%

Punjab National BankUtilities2.80%

National Bank For Agriculture And Rural DevelopmentUtilities2.79%

Jtpm Metal TRaders LimitedUtilities2.61%

Bajaj Housing Finance LimitedUtilities2.48%

Jamnagar Utilities & Power Private LimitedUtilities2.37%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Deepak Agrawal

Mr. Deepak Agrawal has experience of 24 years. Manages 175 funds at Kotak Mahindra Asset Management Co Ltd with an AUM of approximately ₹33,900 Cr Holds a PGDM degree.

25 years

Combined Team Experience

₹ 49,709 Cr

Assets Under Management

Dharmesh Thakkar

Co-Portfolio Manager

Mr. Dharmesh Thakkar has experience of 1 years. Manages 29 funds at Kotak Mahindra Asset Management Co Ltd with an AUM of approximately ₹15,809 Cr

CW Expert Take

Kotak brings banking-grade risk assessment to fund management. Their strength is in identifying mispriced opportunities while maintaining portfolio quality. The equity teams focus on sustainable business models, while their debt strategies emphasize credit selection and liquidity management—reflecting the parent group's risk culture.

Firm Overview

Total AUM₹5,80,249.31 Cr

Investment Philosophy & Approach

Disciplined Approach

Kotak AMC follows a disciplined, process-driven investment approach across strategies.

Risk Management

Strong risk management culture with emphasis on consistency and downside protection.

Long-Term Focus

Strategies reflect a long-term capital allocation mindset and investment philosophy.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)1.18%

Regulatory & Tax Information

INF178L01202

ISIN

DailyDealing Frequency

CRISIL Low Duration Debt A-I TR INRBenchmark

Capital Gain Tax | Taxed as per Income Tax Slab

Tax Implications (India)