Kotak Medium Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 11, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Kotak Medium Term Fund Direct Growth Plan has an NAV of ₹27.6056 as of 10 Sep 2026 and an AUM of ₹1,926 Cr. Its 1-year, 3-year and 5-year returns are 7.65%, 9.04% and 7.43%, and the scheme sits in the Medium Risk category. Our view is that this is a steady debt option for investors who want a measured return pattern rather than aggressive swings, although the portfolio mix means credit selection still matters.
The fund has been around since 21 Mar 2014, charges an expense ratio of 0.67%, and allows SIPs from ₹100. The benchmark is Nifty 50, and the fund has stayed broadly positive over longer stretches even though near-term performance has been softer than some peer funds.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹27.6056 as of 10 Sep 2026 |
| AUM | ₹1,926 Cr |
| Expense Ratio | 0.67% |
| Launch Date | 21 Mar 2014 |
| Min SIP | ₹100 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load |
| Fund Managers | Deepak Agrawal, Vihag Mishra |
The fund is managed by Deepak Agrawal and Vihag Mishra.
Source data date: as of 10 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.08% | -4.06% |
| 3M | 2.25% | 1.37% |
| 1Y | 7.65% | -7.31% |
| 3Y | 9.04% | 6.07% |
| 5Y | 7.43% | 5.91% |
The recent pattern is constructive, but it is not linear. Over the latest month, the fund stayed slightly positive while the benchmark was negative, which tells us the scheme held up better in a weak market stretch. Over three months, the fund improved at a faster pace than the benchmark, suggesting that short-term momentum has been healthier than the index backdrop.
The bigger signal comes from the 1-year, 3-year and 5-year figures. The fund has stayed positive across all three periods, and each of those returns is ahead of the benchmark return shown here. That matters because the benchmark has been negative over one year, so the fund’s ability to preserve positive compounding over that horizon is more useful than the absolute level alone.
At the same time, the longer record does not show a straight upward climb. The fund has seen periods of softness and recovery, which is normal for a debt scheme with credit exposure and medium-duration style characteristics. Our view is that the 3-year outcome is the clearest proof of consistency, while the 5-year figure suggests more moderate compounding rather than a high-growth profile.
For an investor, that combination means the fund is better read as a steadier medium-term debt allocation than as a return-chasing product. The key question is not whether it can beat every short-term patch, but whether its mix of modest drawdowns and positive long-run returns fits the role you want it to play.
Source data date: as of 10 Sep 2026
Should you BUY or HOLD Kotak Medium 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 Medium Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Aditya Birla SL Medium Term Fund Direct Growth Plan | 9.4% | 10.65% | 12.73% |
| ICICI Pru Medium Term Fund Direct Growth Plan | 7.88% | 8.53% | 7.41% |
| Kotak Medium Term Fund Direct Growth Plan | 7.65% | 9.04% | 7.43% |
| SBI Medium Term Fund Direct Growth Plan | 7.16% | 7.89% | 6.87% |
| Axis Medium Term Fund Direct Growth Plan | 7.1% | 8.45% | 7.37% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
On the recent 1-year number, this fund trails the strongest peer in this group, but it is comfortably ahead of the lower peer returns and sits close to the middle of the spread. That tells us the recent picture is competitive without being exceptional.
The longer horizon comparison is more mixed. At 3 years, it is ahead of some peers but behind the highest-performing peer in this set, while the 5-year figure again looks moderate rather than leading. The short-term and longer-term pictures therefore do not tell the same story: recent gains are decent, but the longer-run return profile is more measured than the best alternatives shown here.
Source data date: as of 10 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| JTPM Metal Traders Pvt Ltd ( Catalyst Trusteeship Limite) ** | Corporate Debt | 5.6% |
| 7.55% L&T Metro Rail (Hyderabad) Ltd ( Axis Trusteeship Services Ltd . Guaranteed BY Larsen & Toubro Limited.) ** | Corporate Debt | 5.08% |
| 10.81% Bamboo Hotel and Global Centre (Delhi) Private Ltd** | Corporate Debt | 4.69% |
| 8.2% Adani Power Ltd(^)** | Corporate Debt | 4.64% |
| Embassy Office Parks Reit@ | Finance | 4.07% |
| 360 One Prime Ltd.(^)** | Corporate Debt | 3.89% |
| 7.76% Tata Steel Ltd.** | Corporate Debt | 3.86% |
| Mas Financial Services Ltd.(^)** | Floating Rate Instruments | 3.85% |
| 8.6% Aditya Birla Renewables Limited** | Corporate Debt | 3.12% |
| 7.71% Central Government – 2066 | Government Securities | 2.88% |
The top 10 holdings account for approximately 41.68% of the portfolio.
To see all holdings, visit the Kotak Medium Term Fund Direct Growth Plan page
The largest holding is 5.6%, which is a meaningful single-position exposure but not an overwhelming one on its own. The gap from the largest line item to the tenth is not extreme, because the table steps down gradually from the mid-5% area into the high-2% area rather than collapsing sharply.
That pattern suggests the disclosed holdings are spread across several issuers rather than concentrated in just one or two names. With 41.68% of the portfolio covered by the top 10 holdings and 43 disclosed holdings overall, the fund may have a reasonably broad tail beyond the largest positions, even though the upper end still matters for performance and credit tracking.
Our view is that this structure may reduce dependence on any single holding, but it also means credit quality and issue selection remain important. A portfolio built around corporate debt, floating-rate instruments and government securities can contribute to a more balanced profile, yet it still needs to be read through the quality of each credit rather than through equity-style diversification.
Source data date: as of 10 Sep 2026
Who should invest
This fund fits investors who are comfortable with medium risk and want a debt allocation that can hold up across different market phases. The 1-year, 3-year and 5-year returns all stay positive, and the fund has generally done better than the benchmark numbers shown here, which supports a case for patient investors with a medium-term horizon.
The main trade-off is that the portfolio is not designed to behave like a very low-volatility product. The presence of a meaningful corporate-debt mix means returns can improve over time, but they can also be influenced by credit conditions. Our view is that the fund makes more sense for investors who can tolerate some variation in outcomes in exchange for the possibility of steadier compounding than a pure short-duration alternative.
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 Medium Term Fund Direct Growth Plan?
The current NAV is ₹27.6056 as of 10 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 7.65% over 1 year, 9.04% over 3 years and 7.43% over 5 years.
How does the fund compare with its benchmark?
It has outperformed the benchmark return shown for 1 year, 3 years and 5 years. The benchmark figures are -7.31%, 6.07% and 5.91% for those periods.
How does it compare with the peer funds listed here?
Its recent and longer-term returns are competitive, but one peer in the comparison set has higher 1-year, 3-year and 5-year figures. The fund still stays ahead of some other peers on each of those horizons.
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 Deepak Agrawal and Vihag Mishra. The exit load is nil.
Bottom line
Kotak Medium Term Fund Direct Growth Plan shows a steadier long-term return pattern than the benchmark figures in this review, even though the most recent 1-year and 3-year outcomes are more measured than the strongest peer in the comparison set. The risk label is Medium Risk, which matches a debt fund that can still be shaped by credit selection. Its largest holdings are spread across several issuers, and the disclosed portfolio is not overly dependent on one position. That makes it a reasonable fit for investors seeking medium-term debt exposure with some return discipline and some credit-driven variation.
Published on 11 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.