Kotak BSE PSU Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 11, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Kotak BSE PSU Index Fund Direct Growth Plan has a NAV of ₹9.343 as of 10 Sep 2026 and a scheme AUM of ₹82 Cr. Its 1-year return is 9.43%, while the 3-year and 5-year returns are 0% and 0% respectively. The fund carries a High Risk label, and our view is that it suits investors who can accept sharp swings in a narrow sector theme rather than those looking for broad-market steadiness.
The portfolio is concentrated in PSU names, led by State Bank of India at 19.79%, so the outcome is likely to depend heavily on a small set of large holdings. That concentration, together with the PSU focus and benchmark behaviour that has lagged the comparison index over the longer window, makes this a more specialised allocation than a core equity fund.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹9.343 as of 10 Sep 2026 |
| AUM | ₹82 Cr |
| Expense Ratio | 0.39% |
| Launch Date | 31 Jul 2024 |
| Min SIP | ₹100 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Index Funds |
| 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 10 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -1.65% | -4.06% |
| 3M | 0.43% | 1.37% |
| 1Y | 9.43% | -7.31% |
| 3Y | Data not available | Data not available |
| 5Y | Data not available | Data not available |
Recent behaviour has been choppy but better than the benchmark on a short horizon. Over 1 month, the fund fell less than the index, and over 3 months it stayed positive while the benchmark also gained, though the index did slightly better in that stretch. That pattern suggests the fund has participated in the recent PSU phase without showing smooth day-to-day compounding.
The bigger picture is more uneven. The 1-year return is firmly positive at 9.43%, but the benchmark’s 1-year figure is negative at -7.31%, so the fund has clearly outpaced the comparison index over that window. At the same time, the portfolio only began in July 2024, which explains why 3-year and 5-year return history is not available for a meaningful long-term read.
The 1-month series dipped after a steadier start, while the 3-month and 1-year paths moved through clear pullbacks before recovering. For investors, that means the fund has shown episodic strength rather than a straight upward trend. Our view is that this kind of pattern is more suitable for investors who can tolerate theme-driven volatility and who understand that a PSU index can move very differently from the broader market.
Source data date: as of 10 Sep 2026
Should you BUY or HOLD Kotak BSE PSU 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 BSE PSU Index? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Kotak BSE PSU Index Fund Direct Growth Plan | 9.43% | Data not available | Data not available |
| ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan | 33.08% | 30.07% | Data not available |
| Motilal Oswal Nifty India Defence Index Fund Direct Growth Plan | 26.95% | Data not available | Data not available |
| Aditya Birla SL Nifty India Defence Index Fund Direct Growth Plan | 26.94% | Data not available | Data not available |
| Tata Nifty Capital Markets Index Fund Direct Growth Plan | 24.33% | Data not available | Data not available |
| Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan | 23.74% | Data not available | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
Against the peer set, the fund’s 1-year return is materially lower than the best available numbers, even though its own 1-year result is positive. The gap is especially visible when compared with the defence and capital-markets themed funds, which have delivered much stronger one-year outcomes. On the longer side, there is no 3-year or 5-year return record to compare, so the shorter horizon tells the more useful story here.
That makes the comparison uneven: the fund’s recent recovery is real, but it has not matched the strongest peer figures. The absence of longer-term history also means the peer review is dominated by one-year outcomes rather than a full cycle, which is important for investors who want consistency across time frames.
Source data date: as of 10 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| State Bank of India. | Bank | 19.79% |
| NTPC Ltd | Power | 7.65% |
| Bharat Electronics Ltd. | Capital Goods | 6.45% |
| Power Grid Corporation of India Ltd. | Power | 6.01% |
| Oil and Natural Gas Corporation Ltd. | Crude Oil | 4.39% |
| Coal India Limited | Mining | 4.38% |
| Hindustan Aeronautics Ltd. | Capital Goods | 4.04% |
| Bharat Petroleum Corporation Ltd. | Crude Oil | 2.90% |
| Power Finance Corporation Ltd. | Finance | 2.86% |
| Bharat Heavy Electricals Ltd. | Capital Goods | 2.76% |
The top 10 holdings account for approximately 61.23% of the portfolio.
To see all holdings, visit the Kotak BSE PSU Index Fund Direct Growth Plan page
The largest holding, State Bank of India., is 19.79%, which means it can have a noticeable influence on fund behaviour. The tenth holding is 2.76%, so the weight falls away quite sharply from the top position to the bottom of the disclosed list. That difference suggests the portfolio is not evenly spread across its largest names.
Even so, the listed holdings are not only a single-name story. The top 10 together make up 61.23% of the portfolio, and the disclosed list contains 37 holdings in total, which points to a long tail beyond the largest positions. Our view is that the fund may still have meaningful diversification across PSU names, but the higher-weight positions are likely to matter much more for near-term performance.
Source data date: as of 10 Sep 2026
Who should invest
This fund fits investors who are comfortable with High Risk and who can hold through uneven swings in a sector-focused strategy. The 1-year result is positive, but the short-term and longer-term pattern is mixed, so a longer horizon is important if an investor wants to let the theme play out.
The main trade-off is that the fund can differ sharply from the broader market and from stronger peer return profiles. Investors who want a broad-market core may find the PSU concentration too specific, while those who want targeted exposure to public-sector companies may accept the volatility in exchange for that theme exposure.
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 10 Sep 2026
Frequently asked questions
What is the current NAV of Kotak BSE PSU Index Fund Direct Growth Plan?
The current NAV is ₹9.343 as of 10 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The 1-year return is 9.43%. The 3-year and 5-year returns are both not available because the scheme has not built those histories yet.
How has the fund performed versus its benchmark?
The fund has done better than the benchmark over 1 year, with 9.43% versus -7.31%. Over 1 month, the fund also held up better than the benchmark, while over 3 months the benchmark was slightly ahead.
How does it compare with the peer funds listed here?
Its 1-year return is lower than the leading peer figures shown here, including the defence and capital-markets index funds. The longer-term peer comparison is limited because several peers also do not have 3-year or 5-year figures available.
Is there a minimum SIP amount?
Yes. The minimum SIP amount is ₹100.
What are the risk label, portfolio concentration and exit load?
The fund is tagged High Risk. State Bank of India is the largest holding at 19.79%, and the top 10 holdings together account for 61.23% of the portfolio. The fund has no exit load.
Bottom line
Kotak BSE PSU Index Fund Direct Growth Plan has shown a stronger recent 1-year result than its benchmark, but the longer view is still limited and the short-term path has been uneven. Compared with the listed peers, its 1-year return is much lower, which makes the recent recovery less compelling on a relative basis. The portfolio is led by State Bank of India and the top positions carry meaningful weight, so the fund may suit investors who want focused PSU exposure and are comfortable with High Risk and a concentrated sector theme.
Published on 11 September 2026 at 3:44 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.