Kotak Credit Risk Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 11, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Kotak Credit Risk Fund Direct Growth Plan has a NAV of ₹36.3501 as of 10 Sep 2026 and a scheme AUM of ₹773 Cr. Its 1-year, 3-year and 5-year returns are 7.85%, 8.63% and 6.76%, and the scheme carries a High Risk label.
Our view is that this fund fits investors who can handle sharp swings in a credit-focused debt portfolio and who are comfortable holding it for a longer horizon. The return profile has been reasonably stable over multi-year periods, but the portfolio and risk label mean it is not suited to conservative capital-preservation needs.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹36.3501 as of 10 Sep 2026 |
| AUM | ₹773 Cr |
| Expense Ratio | 0.81% |
| Launch Date | 01 Jan 2013 |
| Min SIP | ₹100 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | Nil upto 6% of investment and 1% for remaining investment on or before 1Y, Nil after 1Y |
| Fund Managers | Vihag Mishra, Deepak Agrawal |
The fund is managed by Vihag Mishra and Deepak Agrawal.
Source data date: as of 10 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.3% | -4.06% |
| 3M | 2.49% | 1.37% |
| 1Y | 7.85% | -7.31% |
| 3Y | 8.63% | 6.07% |
| 5Y | 6.76% | 5.91% |
The most recent numbers look better than the benchmark, especially over 1 year, where the fund has stayed positive while the benchmark is negative. The 1-month and 3-month readings also show that the fund has held up better than the benchmark in the short run, although the gap is much smaller over 3 months than it is over 1 month.
Over 3 years and 5 years, the fund has remained ahead of the benchmark, but the margin is modest rather than dramatic. That tells us the scheme has added value with some consistency, yet it has not produced an outsized long-term gap that would suggest a completely different return engine from the benchmark.
The pattern across the chart is not smooth. There are stretches where returns advance gradually and then pause or soften, which is consistent with a credit-oriented debt strategy that can move unevenly from one phase to another. The longer-term trend is still positive, but investors should expect periods when the path is less linear than a simple plain-vanilla debt fund.
In our view, the main takeaway is that the fund has recently shown relative resilience, while its 3-year and 5-year numbers point to a steadier compounding story than a fast-rising one. That combination can appeal to investors who want return potential in debt but are willing to accept a less predictable ride.
Source data date: as of 10 Sep 2026
Should you BUY or HOLD Kotak Credit Risk?
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 Credit Risk? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Kotak Credit Risk Fund Direct Growth Plan | 7.85% | 8.63% | 6.76% |
| Bank of India Credit Risk Fund Direct Growth Plan | 17.99% | 10.1% | 27.77% |
| Aditya Birla SL Credit Risk Fund Direct Growth Plan | 12.96% | 13.18% | 10.91% |
| DSP Credit Risk Fund Direct Growth Plan | 11.34% | 16.81% | 13.36% |
| Axis Credit Risk Fund Direct Growth Plan | 8.75% | 8.85% | 7.7% |
| ICICI Pru Credit Risk Fund Direct Growth Plan | 8.72% | 9.15% | 8.02% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
The fund’s 1-year return is below every peer listed here, while its 3-year and 5-year numbers also sit at the lower end of the available set. The gap is most visible over 5 years, where some peers have delivered much stronger compounding. Short-term comparison and longer-term comparison point in the same direction: the fund has been steadier than the benchmark, but the peer set has shown stronger return delivery overall.
Source data date: as of 10 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Triparty Repo | Cash & Cash Equivalents and Net Assets | 8.19% |
| Jubilant Bevco Limited ( Axis Trustee Services Limitedstep Up Or Down 25 BPS for Every Rating Chang) (^)** | Corporate Debt | 7.23% |
| 9.5% Vedanta Ltd.** | Corporate Debt | 6.52% |
| 10.81% Bamboo Hotel and Global Centre (Delhi) Private Ltd** | Corporate Debt | 6.49% |
| 8.25% Tata Projects Ltd.** | Corporate Debt | 6.47% |
| Muthoot Finance Ltd.(^)** | Corporate Debt | 6.43% |
| 8.55% Aditya Birla Real Estate Ltd | Corporate Debt | 5.82% |
| 8.6% Aditya Birla Renewables Limited** | Corporate Debt | 5.18% |
| Indus Infra Trust | Finance | 4.7% |
| 9.3% AU Small Finance Bank Ltd.** | Corporate Debt | 3.89% |
The top 10 holdings account for approximately 60.92% of the portfolio.
To see all holdings, visit the Kotak Credit Risk Fund Direct Growth Plan page
The single largest holding is Triparty Repo at 8.19%, so cash and near-cash exposure may play a meaningful stabilising role. The next few positions are close together in size, but the weights still step down from the top holding to the tenth, which suggests that a handful of positions may matter more than the rest.
The combined weight of the displayed holdings is 60.92% across 10 holdings, while the full disclosed portfolio includes 28 holdings. That structure points to a portfolio that is not fully spread across a very long tail in the positions shown, so individual credit selections could have a noticeable effect on returns.
Because the largest positions are mainly corporate debt and finance exposures, the fund may be more sensitive to issuer-specific developments than a broader, lower-risk debt strategy. The mix also suggests that returns may depend on credit selection as much as on interest-rate moves.
Source data date: as of 10 Sep 2026
Who should invest
This fund suits investors who are comfortable with High Risk debt exposure and who can stay invested for a longer period. The 1-year result is decent, and the 3-year and 5-year numbers suggest a stable enough compounding pattern, but the benchmark comparison and credit-heavy portfolio mean the path may not be smooth.
The main trade-off is between higher return potential than a plain conservative debt fund and the extra volatility that comes with credit risk. Investors who want a relatively steady but still return-seeking debt allocation may find the fit more appropriate than those who need capital stability above all else.
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: Nil upto 6% of investment and 1% for remaining investment on or before 1Y, Nil after 1Y.
Source data date: as of 10 Sep 2026
Frequently asked questions
What is the current NAV of Kotak Credit Risk Fund Direct Growth Plan?
The current NAV is ₹36.3501 as of 10 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year return is 7.85%, its 3-year return is 8.63%, and its 5-year return is 6.76%.
How does the fund compare with its benchmark?
It has outperformed the benchmark across every listed period in this review. The gap is widest over 1 year and narrower over 3 years and 5 years.
How does it compare with the peer funds listed here?
Its recent and longer-term returns are below the peer figures shown here. The peer set has delivered stronger 1-year and multi-year compounding, especially over 5 years.
What is the minimum SIP amount?
The minimum SIP amount is ₹100.
Who manages the fund and what is the exit load?
The fund is managed by Vihag Mishra and Deepak Agrawal. Exit load is nil upto 6% of investment and 1% for remaining investment on or before 1 year, and nil after 1 year.
Bottom line
Kotak Credit Risk Fund Direct Growth Plan has shown a steadier long-run pattern than its benchmark, but its peer comparison suggests that other credit-risk funds have delivered stronger returns. The portfolio is fairly concentrated in a limited set of corporate debt positions, which can make individual issuers more important to outcomes. For investors who can tolerate High Risk debt exposure and are comfortable with credit selection risk over a longer horizon, it offers a differentiated return profile rather than a conservative one.
Published on 11 September 2026 at 10:20 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.