Kotak Gilt Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 10, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Kotak Gilt Fund Direct Growth Plan has a NAV of ₹111.4563 as of 09 Sep 2026 and an AUM of ₹2,107 Cr. Its 1-year, 3-year and 5-year returns are 3.23%, 5.9% and 5.53%, respectively, and the scheme sits in the Medium Risk bucket.
Our view is that this is a fairly steady debt option for conservative investors who want sovereign and treasury-bill exposure rather than aggressive return chasing. The return profile has been moderate across time periods, and the portfolio is built around government securities, which helps keep the fund’s behaviour anchored to interest-rate movements.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹111.4563 as of 09 Sep 2026 |
| AUM | ₹2,107 Cr |
| Expense Ratio | 0.47% |
| Launch Date | 01 Jan 2013 |
| Min SIP | ₹100 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load after holding period |
| Fund Managers | Abhishek Bisen |
The fund is managed by Abhishek Bisen.
Source data date: as of 09 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -0.84% | -4.69% |
| 3M | 1.85% | 0.93% |
| 1Y | 3.23% | -7.16% |
| 3Y | 5.9% | 6% |
| 5Y | 5.53% | 5.87% |
The recent picture is mixed. Over 1 month, the fund slipped, but it still held up better than the benchmark, which fell more sharply. Over 3 months, the fund recovered and moved ahead of the benchmark, which suggests the portfolio has been able to absorb short-term rate swings better than the index in the latest stretch.
The 1-year figure is the strongest contrast in the table. The fund delivered a positive return while the benchmark was negative, so the gap here is clearly favourable. That said, the longer run is more balanced: the 3-year and 5-year returns are close to the benchmark and sit slightly below it, which tells us this is not a fund that has consistently pulled away from its reference index.
The time pattern also matters. The 3-year and 5-year paths show a fund that has spent much of the period in a narrow band, with gains building gradually rather than through sharp jumps. That kind of movement is typical of an interest-rate-sensitive debt strategy, where stability matters more than rapid compounding. For investors, the main takeaway is that the fund has looked steadier than the benchmark recently, but its longer-term edge is modest.
Source data date: as of 09 Sep 2026
Should you BUY or HOLD Kotak Gilt?
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 Gilt? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Kotak Gilt Fund Direct Growth Plan | 3.23% | 5.9% | 5.53% |
| Bandhan Gilt Fund Direct Growth Plan | 7.94% | 8% | 6.38% |
| Franklin India Gilt Fund Direct Growth Plan | 6.38% | 6.62% | 5.47% |
| Bandhan 10 year Constant Maturity Gilt Fund Direct Growth Plan | 5.44% | 7.85% | 5.92% |
| ICICI Pru Gilt Fund Direct Growth Plan | 5.23% | 7.3% | 6.65% |
| UTI Gilt Fund Direct Growth Plan | 5.17% | 6.73% | 5.77% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On 1-year performance, Kotak Gilt Fund Direct Growth Plan trails all five peer funds listed here. The 3-year and 5-year numbers are also softer than several peers with available data, although the gap is smaller over the longer horizon than it is over 1 year. In our view, the short-term comparison and the longer-term comparison point to the same broad conclusion: the fund has been more restrained than the stronger peer outcomes, but not in a way that looks out of step with a conservative gilt strategy.
Source data date: as of 09 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| 7.24% Central Government – 2055 | Government Securities | 19.47% |
| 6.9% Central Government – 2065(^) | Government Securities | 15.5% |
| Triparty Repo | Cash & Cash Equivalents and Net Assets | 14.1% |
| 6.48% Central Government – 2035(^) | Government Securities | 8.75% |
| 91 Days Treasury Bill 03/09/2026 | Treasury Bills | 8.3% |
| 182 Days Treasury Bill 03/09/2026 | Treasury Bills | 4.74% |
| 7.8% Tamil Nadu State Govt – 2041 – Tamil Nadu(^) | Government Securities | 4.31% |
| 7.49% Karnataka State Govt – 2035 – Karnataka | Government Securities | 3.93% |
| 7.55% Karnataka State Govt – 2035 – Karnataka | Government Securities | 2.65% |
| 6.88% Bihar State Govt – 2035 – Bihar | Government Securities | 2.26% |
The single largest holding is 7.24% Central Government – 2055 at 19.47%, which is large enough to matter on its own. After that, weights step down fairly gradually through another long-dated central government security, triparty repo, and a mix of treasury bills and state government securities. The tenth holding is still 2.26%, so the drop from the first to the tenth position is meaningful, but not extreme.
The top 10 holdings account for approximately 84.01% of the portfolio, and there are 25 disclosed holdings in all. That points to a portfolio that is concentrated in a relatively small set of sovereign and quasi-sovereign positions, with a longer tail beyond the largest names. In our view, the heavy government-securities bias may help keep credit quality high, while the concentration in a few large line items means interest-rate movements in those longer-dated papers could still have greater influence on returns.
To see all holdings, visit the Kotak Gilt Fund Direct Growth Plan page
Source data date: as of 09 Sep 2026
Who should invest
This fund suits investors who are comfortable with Medium Risk and want a gilt-heavy debt allocation rather than an equity-style return profile. The 1-year result is stronger than the benchmark, but the 3-year and 5-year figures are only modestly ahead of a stable, low-volatility pattern, so it works better for patience than for quick performance chasing.
Our view is that a medium-to-long horizon is more appropriate than a very short holding period, because gilt funds can move around when bond yields shift. The trade-off is clear: you get exposure to sovereign debt and lower credit risk than many other debt categories, but returns can still fluctuate and may lag stronger peer outcomes in some periods.
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 after holding period.
Source data date: as of 09 Sep 2026
Frequently asked questions
What is the current NAV of Kotak Gilt Fund Direct Growth Plan?
The current NAV is ₹111.4563 as of 09 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 3.23% over 1 year, 5.9% over 3 years and 5.53% over 5 years.
How does the fund compare with its benchmark?
It has outperformed the benchmark over 1 month, 3 months and 1 year, while the 3-year and 5-year returns are slightly below the benchmark.
How does it compare with peer gilt funds on recent returns?
Its 1-year return is below the five peer funds shown here, and its 3-year and 5-year figures are also softer than several peers with available data.
What is the minimum SIP amount?
The minimum SIP amount is ₹100.
Who manages the fund and what is the exit load?
Abhishek Bisen manages the fund. The exit load is nil after the holding period.
Bottom line
Kotak Gilt Fund Direct Growth Plan has shown a better recent tone than its benchmark, especially over 1 month, 3 months and 1 year, but its longer-term returns remain moderate rather than standout. Against the peer set shown here, the return profile is softer on every available horizon, which makes the fund look more measured than aggressive.
The portfolio is dominated by government securities and treasury bills, which supports the low-credit-risk character of the scheme. For investors who want gilt exposure and can live with interest-rate-driven movement, the fund fits a conservative debt allocation better than a return-chasing one.
Published on 10 September 2026 at 11:35 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.