Kotak Nifty Financial Services Ex-Bank Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 18, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Kotak Nifty Financial Services Ex-Bank Index Fund Direct Growth Plan has a NAV of ₹16.298 as of 17 Sep 2026 and an AUM of ₹99 Cr. Its 1-year, 3-year and 5-year returns are 2.75%, 14.92% and 0%, and it carries a High Risk tag. Our view is that the fund suits investors who can accept sharper swings in a focused financial-services strategy, especially when they are comfortable with benchmark-like index behaviour but want exposure away from bank-heavy baskets.
Recent numbers are mixed, yet the 3-year track is more constructive than the 1-year reading. The portfolio is concentrated in a handful of large financial names, so the return path can stay uneven, but the structure also gives clear thematic exposure.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹16.298 as of 17 Sep 2026 |
| AUM | ₹99 Cr |
| Expense Ratio | 0.22% |
| Launch Date | 14 Aug 2023 |
| Min SIP | ₹100 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Equity |
| Exit Load | No exit load |
| Fund Managers | Satish Dondapati, Abhishek Bisen, Jeetu Valechha Sonar |
The fund is managed by Satish Dondapati, Abhishek Bisen and Jeetu Valechha Sonar.
Source data date: as of 17 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -3.63% | -3.66% |
| 3M | -1.09% | -3.71% |
| 1Y | 2.75% | -7.13% |
| 3Y | 14.92% | 5.82% |
| 5Y | Data not available | Data not available |
The shorter end of the record has been choppy. The fund fell over the last month, but the decline was broadly in line with the benchmark, which tells us the recent weakness is not unique to this scheme. Over three months, the fund held up better than the benchmark, even though the period still closed lower, so the gap reflects relative resilience rather than steady gains.
The one-year picture is more helpful. The fund stayed in positive territory while the benchmark was lower over the same span, which suggests that the portfolio’s sector tilt has been better positioned than the broader market over that window. That said, the return remains modest, so the fund has not yet produced a strong one-year compounding story.
Over three years, the trend looks much firmer. The fund’s cumulative path improved through several phases, including a stretch of stronger gains after earlier drawdowns, and the three-year return now stands clearly above the benchmark. That longer run shows the scheme can recover, but it has done so with noticeable swings rather than a smooth line upward.
The five-year figure is not available because the scheme has a shorter live history. For investors, that means the usable evidence is mainly the recent multi-year pattern, and that pattern points to a differentiated but volatile return profile.
Source data date: as of 17 Sep 2026
Should you BUY or HOLD Kotak Nifty Financial Services Ex-Bank Index?
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 Nifty Financial Services Ex-Bank Index? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Kotak Nifty Financial Services Ex-Bank Index Fund Direct Growth Plan | 2.75% | 14.92% | 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 one-year numbers, the fund trails the stronger peer readings by a wide margin, which shows that its recent run has been much quieter than several thematic funds in the peer set. The three-year picture is more balanced: its 14.92% result is ahead of peers where three-year figures are unavailable, but below the better-established three-year peer number available here. That mix suggests the short-term story and the multi-year story do not point in the same direction.
Source data date: as of 17 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| BAJAJ FINANCE LTD. | Finance | 15.6% |
| SHRIRAM FINANCE LIMITED | Finance | 8.56% |
| BSE LTD | Finance | 7.39% |
| BAJAJ FINSERV LTD. | Finance | 6.44% |
| MULTI COMMODITY EXCHANGE OF INDIA LIMITED | Finance | 4.78% |
| CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LTD. | Finance | 4.43% |
| JIO FINANCIAL SERVICES LTD | Finance | 4.36% |
| SBI LIFE INSURANCE COMPANY LTD | Insurance | 4.31% |
| ONE 97 COMMUNICATIONS LTD | IT | 3.98% |
| PB FINTECH LTD. | IT | 3.57% |
The largest holding, BAJAJ FINANCE LTD., carries a 15.6% weight, so it is likely to have greater influence on day-to-day movement than any other single position. After that, the weights step down fairly quickly, with the tenth holding at 3.57%. That gap between the first and tenth holdings points to a meaningful top-weighted structure rather than a flat portfolio.
The displayed ten holdings together account for approximately 63.42% of the portfolio, and the fund shows 30 disclosed holdings in total. That combination suggests concentration at the top, but not an all-or-nothing structure. The weight is spread across a longer tail beyond the largest names, which may reduce dependence on just one or two positions, even though the leading holdings remain the main drivers.
Because the fund is built around financial-services names, the portfolio can still move in sync with sector sentiment. That means the top holdings matter both for returns and for volatility, especially when the larger positions are from closely related financial sub-segments.
To see all holdings, visit the Kotak Nifty Financial Services Ex-Bank Index Fund Direct Growth Plan page
Source data date: as of 17 Sep 2026
Who should invest
This fund fits investors who can handle High Risk and are comfortable with a focused financial-services exposure. The return pattern suggests that patience matters: the shorter periods have been uneven, while the three-year run is better, so a medium- to long-term horizon is more sensible than a quick-entry, quick-exit approach.
The main trade-off is between targeted sector participation and higher volatility. The fund has held up better than the benchmark over one year and has a stronger three-year return, but the path has been uneven and the portfolio is concentrated in a few large positions. Investors who want broader diversification or smoother movement may find that trade-off too sharp.
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: No exit load.
Source data date: as of 17 Sep 2026
Frequently asked questions
What is the current NAV of Kotak Nifty Financial Services Ex-Bank Index Fund Direct Growth Plan?
The current NAV is ₹16.298 as of 17 Sep 2026.
How has the fund performed over 1 year, 3 years and 5 years?
Its 1-year return is 2.75% and its 3-year return is 14.92%. The 5-year return is Data not available because the scheme has a shorter live history.
How does the fund compare with its benchmark?
Over 1 year, the fund at 2.75% is ahead of the benchmark at -7.13%. Over 3 years, the fund at 14.92% is also ahead of the benchmark at 5.82%.
How does it compare with the peer funds listed here?
The one-year return is below the stronger peer figures shown here, while the three-year number is more competitive against peers with available three-year data. The short-term and longer-term comparisons do not tell the same story.
What is the minimum SIP?
The minimum SIP is ₹100.
Who manages the fund and what is the exit load?
The fund is managed by Satish Dondapati, Abhishek Bisen and Jeetu Valechha Sonar. The exit load is nil, so units can be sold without an exit-load charge.
Bottom line
Kotak Nifty Financial Services Ex-Bank Index Fund Direct Growth Plan has a mixed but improving multi-year profile. The one-year return is modest, yet the three-year record is stronger and clearly ahead of the benchmark, which suggests the longer run has been more useful than the recent stretch. Against peers, the fund looks less powerful on one-year numbers but more acceptable on the available multi-year evidence. Its High Risk profile and concentrated financial-services holdings make it better suited to investors who can tolerate volatility and want focused sector exposure rather than broad-market smoothness.
Published on 18 September 2026 at 1:29 PM 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.