Kotak Dynamic Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 10, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Kotak Dynamic Term Fund Direct Growth Plan closed at ₹43.573 as of 09 Sep 2026, with an AUM of ₹2,341 Cr. Its 1-year, 3-year and 5-year returns are 6.57%, 7.87% and 6.64% respectively, and the fund sits in the Medium Risk bucket. Our view is that this is a steadier debt option than an equity-style product, but the return pattern shows that it is better suited to investors who can accept moderate movements in exchange for a more measured long-term outcome.
The fund has a long track record since 01 Jan 2013, and its portfolio mix is anchored by government securities with some corporate debt and cash positions. That mix helps explain why the return profile has stayed in a relatively contained band rather than swinging sharply. For investors looking for debt allocation with some room for active duration and credit positioning, this fund looks more relevant than for those seeking high growth.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹43.573 as of 09 Sep 2026 |
| AUM | ₹2,341 Cr |
| Expense Ratio | 0.59% |
| Launch Date | 01 Jan 2013 |
| Min SIP | ₹100 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load |
| Fund Managers | Deepak Agrawal, Abhishek Bisen |
The fund is managed by Deepak Agrawal and Abhishek Bisen.
Source data date: as of 09 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -0.44% | -4.69% |
| 3M | 2.5% | 0.93% |
| 1Y | 6.57% | -7.16% |
| 3Y | 7.87% | 6% |
| 5Y | 6.64% | 5.87% |
The recent picture is mixed but not weak. Over the last month, the fund was marginally negative, yet that still compared better than the benchmark’s deeper decline. Over three months, the fund stayed positive while the benchmark was also positive, but the fund kept a wider cushion. That tells us the portfolio has been able to absorb short-term pressure without giving up its defensive character.
The one-year number is the sharpest contrast. The fund delivered a positive 1-year return while the benchmark was negative, which suggests it handled a difficult period better than the index. Over three and five years, the pattern remains positive and relatively stable, with the fund staying ahead of the benchmark in both cases. The longer window does not point to explosive compounding, but it does show consistent delivery over time.
The time pattern also looks smoother than a cyclical, high-conviction credit bet. There are small ups and downs, but not the kind of large drawdowns that would suggest aggressive duration or concentrated credit risk. For a debt fund, that kind of steadiness matters because it reduces the chance that one bad market phase dominates the outcome.
Overall, the recent and longer-term data tell a similar story: the fund has not been a standout in absolute return terms, but it has been reasonably resilient versus the benchmark across all tracked periods. That makes the return profile more useful for investors who value consistency over sharp upside.
Source data date: as of 09 Sep 2026
Should you BUY or HOLD Kotak Dynamic Term?
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 Dynamic Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Bandhan Dynamic Term Fund Direct Growth Plan | 7.36% | 7.66% | 6.14% |
| Axis Dynamic Term Fund Direct Growth Plan | 6.61% | 7.52% | 6.28% |
| Kotak Dynamic Term Fund Direct Growth Plan | 6.57% | 7.87% | 6.64% |
| 360 ONE Dynamic Term Fund Direct Growth Plan | 6.48% | 8.19% | 6.91% |
| ICICI Pru Dynamic Term Fund Direct Growth Plan | 6.02% | 7.82% | 7.09% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
Kotak Dynamic Term Fund Direct Growth Plan’s 1-year return sits below Bandhan Dynamic Term Fund Direct Growth Plan and Axis Dynamic Term Fund Direct Growth Plan, but it remains above ICICI Pru Dynamic Term Fund Direct Growth Plan. That suggests the recent period has been competitive without being the strongest in the set. The short-term gap is not large, so the fund still looks broadly in line with peers that share the same broad style.
On the longer horizon, the picture is more balanced. Its 3-year return is better than the other peer figures listed here except 360 ONE Dynamic Term Fund Direct Growth Plan, while its 5-year return is ahead of all the peers shown. That tells us the fund’s longer-term behaviour has been stronger than its recent one-year standing might first suggest. The short-term and longer-term peer comparisons therefore tell different stories: the latest year is ordinary, but the multi-year record is more convincing.
Source data date: as of 09 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| 6.9% Central Government – 2065(^) | Government Securities | 24.42% |
| Triparty Repo | Cash & Cash Equivalents and Net Assets | 12.13% |
| 9.09% Muthoot Finance Ltd.** | Corporate Debt | 6.46% |
| 8.95% Vedanta Ltd. ( Axis Trustee Services Ltd.) ** | Corporate Debt | 6.44% |
| 7.71% Central Government – 2066(^) | Government Securities | 5.39% |
| 7.25% Central Government – 2063 | Government Securities | 4.68% |
| 7.54% Tamil Nadu State Govt – 2036 – Tamil Nadu(^) | Government Securities | 4.45% |
| 7.56% Karnataka State Govt – 2036 – Karnataka | Government Securities | 4.27% |
| 8.2% Adani Power Ltd** | Corporate Debt | 4.03% |
| Indus Infra Trust | Finance | 3.91% |
The largest holding alone is 24.42%, which gives that government security a meaningful influence on the portfolio’s day-to-day movement. After that, the weights step down fairly quickly into the low teens and then the mid-single digits, so the portfolio is not dominated by a single cluster of very large positions beyond the top line item.
The gap from the first holding to the tenth holding is sizeable, but the list is still diversified across government securities, corporate debt, cash and a finance exposure. That mix may help smooth outcomes because different holdings can react differently to rate changes and credit conditions. The top 10 holdings account for approximately 76.18% of the portfolio.
Because 24 holdings are disclosed and the visible top 10 already account for most of the portfolio, the fund appears moderately concentrated at the top with a longer tail below. That structure could make the largest positions more influential, while still leaving room for the remaining holdings to matter over time.
To see all holdings, visit the Kotak Dynamic Term Fund Direct Growth Plan page
Source data date: as of 09 Sep 2026
Who should invest
This fund may suit investors with moderate risk tolerance who want debt exposure rather than equity-style growth. The Medium Risk label fits a profile where short-term fluctuations are possible, but the overall path has stayed relatively contained compared with the benchmark.
An investment horizon of at least three to five years looks more appropriate than a very short holding period. The main trade-off is between steadier behaviour and limited upside: the fund has delivered positive multi-year returns, but it is not designed for rapid capital appreciation. Investors who value a smoother debt allocation and can accept modest return variability may find the profile easier to use in a broader portfolio.
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 09 Sep 2026
Frequently asked questions
What is the current NAV of Kotak Dynamic Term Fund Direct Growth Plan?
Its current NAV is ₹43.573 as of 09 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 6.57% over 1 year, 7.87% over 3 years and 6.64% over 5 years.
How does it compare with the benchmark?
It has stayed ahead of the benchmark over the 1-year, 3-year and 5-year periods shown. The benchmark returns are -7.16%, 6% and 5.87% for those same horizons.
How does it compare with the peer funds listed here?
Its 5-year return is ahead of the peer figures shown, while the 1-year return sits in the middle of the peer set. On 3 years, it is behind only 360 ONE Dynamic Term Fund Direct Growth Plan among the funds listed here.
What is the risk category of this fund?
It is classified as Medium Risk. That fits a debt fund that can still move, but usually less sharply than an equity-oriented product.
Who manages the fund and what is the exit load?
The fund is managed by Deepak Agrawal and Abhishek Bisen. The exit load is shown as no exit load.
Bottom line
Kotak Dynamic Term Fund Direct Growth Plan looks more steady than spectacular. Its latest year is reasonable, but the stronger part of the story is the multi-year record, where it stays ahead of the benchmark across the periods shown and compares well with the peer set on longer horizons. The portfolio leans heavily on government securities, which may help explain the comparatively measured return path. It fits investors who want a debt fund with moderate risk and can accept moderate variation for a more controlled long-term profile.
Published on 10 September 2026 at 11:28 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.