Kotak Nifty Next 50 Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 16, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Kotak Nifty Next 50 Index Fund Direct Growth Plan has a current NAV of ₹20.6314 as of 15 Sep 2026 and manages ₹1,294 Cr. Its 1-year, 3-year and 5-year returns are 3.14%, 15.73% and 10.97% respectively, and the scheme is tagged as High Risk. Our view is that it suits investors who can accept sharp short-term swings in exchange for exposure to the next set of large Indian companies over a longer horizon.
The fund’s recent numbers have been softer than its 3-year track, but the longer-term return profile remains constructive versus its benchmark. With a low expense ratio, direct growth structure and a portfolio built around 50 holdings, it may appeal more to investors who want index-style exposure beyond the Nifty 50 and can stay invested through uneven periods.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹20.6314 as of 15 Sep 2026 |
| AUM | ₹1,294 Cr |
| Expense Ratio | 0.1% |
| Launch Date | 10 Mar 2021 |
| Min SIP | ₹100 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Index Funds |
| Exit Load | No exit load |
| Fund Managers | Satish Dondapati, Jeetu Valechha Sonar |
The fund is managed by Satish Dondapati and Jeetu Valechha Sonar.
Source data date: as of 15 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -5.60% | -4.81% |
| 3M | -1.77% | -3.63% |
| 1Y | 3.14% | -8.27% |
| 3Y | 15.73% | 5.59% |
| 5Y | 10.97% | 5.58% |
The recent pattern is mixed. Over 1 month, the fund fell more than the benchmark, while over 3 months it held up better than the benchmark despite both being negative. That tells us the short-term ride has been choppy, not straight-line.
The broader picture is stronger. The 1-year return is positive while the benchmark is negative, and the 3-year and 5-year returns are both comfortably ahead of the benchmark. That gap matters because it shows the fund has done more than simply track the index through a flat period; it has also delivered better compounding over multiple years.
At the same time, the recent weakness is a reminder that this is still an equity index fund tied to a volatile part of the market. The 3-year run has been much better than the latest month, so the return path has not been smooth. For investors, that means patience is likely more important than trying to read too much into a single weak month.
Overall, the longer horizon looks more favourable than the short horizon, and the fund has clearly stayed ahead of its benchmark across the 1-year, 3-year and 5-year windows. The main question is whether you can tolerate uneven interim periods while waiting for that broader trend to play out.
Source data date: as of 15 Sep 2026
Should you BUY or HOLD Kotak Nifty Next 50 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 Nifty Next 50 Index? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Kotak Nifty Next 50 Index Fund Direct Growth Plan | 3.14% | 15.73% | 10.97% |
| ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan | 29.31% | 30.01% | Data not available |
| Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan | 21.71% | Data not available | Data not available |
| Tata Nifty Capital Markets Index Fund Direct Growth Plan | 21.45% | Data not available | Data not available |
| Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan | 20.15% | Data not available | Data not available |
| ICICI Pru Nifty Pharma Index Fund Direct Growth Plan | 18.11% | 18.92% | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
The fund’s 1-year return trails the strongest peer figures in this set, while its 3-year return is more competitive on the available numbers. That combination suggests the fund has not been the standout on the latest one-year window, but it has built a better multi-year record than several peers with missing longer histories.
The short-term and longer-term comparisons tell different stories. Some peers have materially stronger 1-year readings, yet the current fund’s 3-year and 5-year figures are more complete and more useful for judging how the strategy has behaved through a longer cycle. On that basis, the fund looks steadier in a longer-horizon comparison than it does in the latest 12-month snapshot.
Source data date: as of 15 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Divis Laboratories Ltd. | Healthcare | 4.75% |
| TVS Motor Company Ltd. | Automobile & Ancillaries | 4.02% |
| TML Commercial Vehicles Limited | Domestic Equities | 3.88% |
| Hindustan Aeronautics Ltd. | Capital Goods | 3.60% |
| Adani Power Ltd | Power | 3.24% |
| Cholamandalam Investment and Finance Company Ltd. | Finance | 3.17% |
| Samvardhana Motherson International Ltd | Automobile & Ancillaries | 2.97% |
| Torrent Pharmaceuticals Ltd. | Healthcare | 2.93% |
| Cummins India Ltd. | Automobile & Ancillaries | 2.72% |
| Bharat Petroleum Corporation Ltd. | Crude Oil | 2.59% |
The largest holding, Divis Laboratories Ltd., is 4.75%, which is meaningful but not excessive for a top line item in a 50-stock index basket. The drop from the first holding to the tenth is gradual rather than abrupt, moving from 4.75% to 2.59%, so the top positions are spread fairly evenly instead of being dominated by one or two outsized bets.
The displayed ten holdings account for approximately 33.87% of the portfolio, which means a large part of the scheme still sits outside this list. That is consistent with a 50-holding structure and suggests the portfolio may be diversified across a long tail of constituents rather than highly concentrated in the top few names.
For investors, the important point is that the visible weights are close enough to one another to reduce single-name dependence at the top, while still leaving each leading holding large enough to matter. The mix may therefore be more sensitive to broad moves across these sectors than to one stock alone.
To see all holdings, visit the Kotak Nifty Next 50 Index Fund Direct Growth Plan page
Source data date: as of 15 Sep 2026
Who should invest
This fund may suit investors with a high tolerance for equity volatility and a longer horizon, because its risk label is High Risk and its shorter-term returns have been uneven. The 3-year and 5-year records are more encouraging than the latest month, which fits a patient approach rather than a short trading mindset.
It also works best for someone who wants index-style exposure beyond the Nifty 50 and is comfortable with the fact that returns can lag in weak stretches before the longer trend reasserts itself. The main trade-off is accepting periodic drawdowns and short-term disappointment in exchange for the possibility of stronger multi-year compounding.
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 15 Sep 2026
Frequently asked questions
What is the current NAV of Kotak Nifty Next 50 Index Fund Direct Growth Plan?
Its NAV is ₹20.6314 as of 15 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 3.14% over 1 year, 15.73% over 3 years and 10.97% over 5 years.
How does it compare with the benchmark?
It has outperformed the benchmark across 1-year, 3-year and 5-year periods. The benchmark return is -8.27% for 1 year, 5.59% for 3 years and 5.58% for 5 years.
How does it compare with the listed peer funds?
Its 1-year return is lower than several peers in the list, but its 3-year return is competitive among peers with available longer-period data. The comparison looks stronger on a multi-year basis than on the latest 12-month number.
Is there a minimum SIP amount mentioned?
The fund allows SIP investment, but a minimum SIP amount is not shown here.
Who manages the fund and what is the exit load?
Satish Dondapati and Jeetu Valechha Sonar manage the fund. The exit load is nil, so there is no exit load on redemption.
Bottom line
Kotak Nifty Next 50 Index Fund Direct Growth Plan has a mixed short-term patch but a much better longer-term record, especially versus its benchmark. The peer comparison also looks more comfortable when judged over longer windows rather than the latest 1-year figure. With a High Risk label, a 50-holding structure and a top holding that is meaningful but not overwhelming, it appears better suited to patient investors who can absorb volatility while waiting for the broader index basket to compound.
Published on 16 September 2026 at 6:29 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.