Kotak Banking & Financial Services Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 18, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Kotak Banking & Financial Services Fund Direct Growth Plan has a NAV of ₹16.615 as of 17 September 2026 and a scheme AUM of ₹1,560 Cr. Its 1-year, 3-year and 5-year returns are 4.49%, 11.45% and 0%, and it sits in the High Risk category. Our view is that this is a sector-focused equity fund that has recovered over longer periods but has been uneven in the near term, so it fits investors who can accept sharp swings for financial-services exposure.
The fund’s portfolio is heavily tilted to banks and finance companies, which makes its outcome more dependent on the cycle in that part of the market than a diversified equity fund. For investors who want a dedicated banking and financial-services allocation and can stay invested through volatility, the return pattern and holdings mix may be more relevant than the modest recent drift in NAV.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹16.615 as of 17 Sep 2026 |
| AUM | ₹1,560 Cr |
| Expense Ratio | 0.66% |
| Launch Date | 27 Feb 2023 |
| Min SIP | ₹100 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Equity |
| Exit Load | 0.50% on or before 30D, Nil after 30D |
| Fund Managers | Shibani Kurian, Abhishek Bisen |
The fund is managed by Shibani Kurian and Abhishek Bisen.
Source data date: as of 17 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -3.38% | -3.66% |
| 3M | -2.73% | -3.71% |
| 1Y | 4.49% | -7.13% |
| 3Y | 11.45% | 5.82% |
| 5Y | Data not available | Data not available |
The recent picture is softer than the longer view. Over 1 month and 3 months, the fund is still negative, but the declines are smaller than the benchmark’s declines, which suggests relative resilience even in a weak patch.
At the 1-year mark, the fund is positive while the benchmark is negative, so the scheme has handled the past year better than the broad index. That said, the return path inside the year has not been smooth, which is consistent with a high-risk sector fund rather than a steady compounder.
Looking over 3 years, the fund has delivered 11.45% versus 5.82% for the benchmark. That is a clear improvement over the benchmark, but the path has included several reversals, so the longer-term number should be read alongside the swings visible in the shorter periods.
The 5-year figure is not available because the scheme has not been around long enough to provide that history. For this reason, the available record is better suited to judging cycle sensitivity than to judging full-market-cycle consistency.
Source data date: as of 17 Sep 2026
Should you BUY or HOLD Kotak Banking & Financial Services?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding Kotak Banking & Financial Services? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Kotak Banking & Financial Services Fund Direct Growth Plan | 4.49% | 11.45% | Data not available |
| ICICI Pru Strategic Metal and Energy Equity FoF Direct Growth Plan | 69.8% | 36.32% | Data not available |
| HDFC Pharma and Healthcare Fund Direct Growth Plan | 25.31% | Data not available | Data not available |
| Kotak Healthcare Fund Direct Growth Plan | 25.27% | Data not available | Data not available |
| Motilal Oswal Active Momentum Fund Direct Growth Plan | 24.51% | Data not available | Data not available |
| PGIM India Healthcare Fund Direct Growth Plan | 22.75% | Data not available | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the available return figures, the fund’s 1-year performance trails the strongest peer readings by a wide margin, even though it still stays positive while several long-only sector funds have posted much stronger 1-year gains. The 3-year figure is more constructive, because 11.45% is above the benchmark and better than the peer with available 3-year data, but the shorter-term path shows that the recent stretch has been much less forceful than the best comparable funds.
The peer set also tells two different stories: some funds have shown very strong recent momentum, while this fund looks more measured and more cyclical. That contrast matters, because the fund’s longer-run number is not poor in isolation, yet the short-term gap versus the faster-moving peers shows that it has not been the most aggressive way to participate in the current sector theme.
Source data date: as of 17 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| ICICI Bank Ltd. | Bank | 12.93% |
| HDFC Bank Ltd. | Bank | 9.91% |
| State Bank of India. | Bank | 8.52% |
| Axis Bank Ltd. | Bank | 7.24% |
| Bajaj Finance Ltd. | Finance | 6.18% |
| Shriram Finance Limited | Finance | 5.06% |
| Kotak Mahindra Bank Ltd. | Bank | 3.44% |
| Cholamandalam Investment and Finance Company Ltd. | Finance | 2.68% |
| Triparty Repo | Cash & Cash Equivalents and Net Assets | 2.68% |
| Indusind Bank Ltd. | Bank | 2.62% |
The largest holding, ICICI Bank Ltd. at 12.93%, is sizeable on its own and may have a noticeable influence on the fund’s day-to-day moves. The drop from the first holding to the tenth holding, Indusind Bank Ltd. at 2.62%, is fairly steep, which shows that the portfolio’s weight is front-loaded rather than evenly spread across the top names.
The top 10 holdings account for approximately 61.26% of the portfolio, and the fund has 33 disclosed holdings in total. That mix suggests a meaningful core built around a small group of bank and finance positions, followed by a longer tail of smaller exposures. In practical terms, this may mean the fund could respond strongly when the banking and financial-services segment is in favour, but it may also move more sharply when the segment is under pressure.
Because the disclosed holdings are spread across 33 names, the portfolio is not limited to just a few stocks. Even so, the combined weight of the largest positions is high enough that the fund is likely to remain more sensitive to its core banking bets than to the smaller residual positions.
To see all holdings, visit the Kotak Banking & Financial Services Fund Direct Growth Plan page
Source data date: as of 17 Sep 2026
Who should invest
This fund suits investors who can handle High Risk exposure and are comfortable with a sector-specific equity allocation. The 1-year and 3-year record suggests it can beat the benchmark over time, but the short-term numbers also show that returns can swing and stay under pressure for stretches.
A longer investment horizon is important here, because the portfolio is concentrated in banks and finance companies and is therefore likely to track the cycle in that part of the market. The main trade-off is that you get focused exposure to a strong domestic financial theme, but you also accept higher volatility than a broad-market fund.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
Exit load: 0.50% on or before 30 days; nil after 30 days.
Source data date: as of 17 Sep 2026
Frequently asked questions
What is the current NAV of Kotak Banking & Financial Services Fund Direct Growth Plan?
Its NAV is ₹16.615 as of 17 September 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 4.49% for 1 year, 11.45% for 3 years and Data not available for 5 years.
How does it compare with the benchmark?
It has outperformed the benchmark over 1 year and 3 years. The benchmark returns are -7.13% for 1 year and 5.82% for 3 years.
How does it compare with the peer funds listed here?
Its 1-year return of 4.49% is below the stronger peer readings shown, while its 3-year return of 11.45% is ahead of the only peer in the table with a 3-year figure. That makes the comparison mixed: weaker in the short run, more competitive over 3 years.
Is there a minimum SIP amount?
Yes. The minimum SIP is ₹100.
Who manages the fund, and what is the exit load?
The fund is managed by Shibani Kurian and Abhishek Bisen. The exit load is 0.50% on or before 30 days and nil after 30 days.
Bottom line
Kotak Banking & Financial Services Fund Direct Growth Plan looks like a focused banking and financial-services fund with a stronger longer-run record than its weak near-term stretch suggests. It has done better than the benchmark over 1 year and 3 years, but it has lagged the fastest-moving peer returns in the short run. The portfolio is led by a few large bank and finance positions, so it is best suited to investors who want concentrated sector exposure and can live with High Risk volatility.
Published on 18 September 2026 at 11:40 AM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.