Kotak Nifty Smallcap 250 Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 16, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Kotak Nifty Smallcap 250 Index Fund Direct Growth Plan had a NAV of ₹11.637 as of 15 September 2026 and an AUM of ₹84 Cr. Its 1-year, 3-year and 5-year returns are 3.84%, 0% and 0%, and the scheme sits in the High Risk category. In our view, this is a smallcap index fund best suited to investors who can tolerate sharp swings and want a simple rules-based route to the segment rather than a short-term return story.
The fund’s recent return pattern has been uneven, and the benchmark behaviour has been weaker over the same windows. That gap matters because the portfolio is built around smaller companies, where volatility can be high even when the fund tracks an index approach.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹11.637 as of 15 Sep 2026 |
| AUM | ₹84 Cr |
| Expense Ratio | 0.15% |
| Launch Date | 27 Jan 2025 |
| Min SIP | ₹100 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Index Funds |
| Exit Load | No exit load |
| Fund Managers | Satish Dondapati, Abhishek Bisen, Jeetu Valechha Sonar |
The fund is managed by Satish Dondapati, Abhishek Bisen and Jeetu Valechha Sonar.
Source data date: as of 15 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -2.27% | -4.81% |
| 3M | 3.19% | -3.63% |
| 1Y | 3.84% | -8.27% |
| 3Y | Data not available | Data not available |
| 5Y | Data not available | Data not available |
Recent behaviour has been mixed, with a soft one-month result but a positive three-month phase and a stronger one-year outcome. That pattern suggests the fund has not moved in a straight line, which is normal for a smallcap exposure, but it also means investors should expect stretches where monthly returns can turn negative even after a better quarter.
The one-year figure is more useful for context here. At 3.84%, the fund is ahead of the benchmark’s -8.27% over the same period, so the index fund has cushioned some of the benchmark weakness. Even so, the absolute return level is modest for a segment that typically attracts investors looking for stronger long-run compounding, and the unavailable 3-year and 5-year figures limit how much we can read into longer-term consistency.
The short-term and benchmark comparison tell different stories. On a one-month basis the fund was down, but it still lost less than the benchmark. Over three months and one year, the fund stayed in positive territory while the benchmark remained negative. Our view is that this points to relative resilience rather than standout strength, and that distinction matters when an investor is deciding whether the fund fits a patient smallcap allocation.
Source data date: as of 15 Sep 2026
Should you BUY or HOLD Kotak Nifty Smallcap 250 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 Smallcap 250 Index? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Kotak Nifty Smallcap 250 Index Fund Direct Growth Plan | 3.84% | Data not available | Data not available |
| ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan | 32.61% | 29.92% | Data not available |
| Tata Nifty Capital Markets Index Fund Direct Growth Plan | 25.91% | Data not available | Data not available |
| Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan | 21.71% | 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.
Against the available peer set, the fund’s 1-year return is much lower than the stronger category-specific and thematic peers listed here. The gap is also visible where longer-period data is available: the fund does not have disclosed 3-year or 5-year figures, while some peers do, and those peers show materially higher numbers. That makes the current fund look more like a cautious relative performer than a return leader, although the short-term comparison still shows it holding up better than the benchmark.
For our view, the key takeaway is that the peer comparison does not tell a single story. On recent numbers, the fund trails the better-performing peers by a wide margin, but it still compares more favourably than the benchmark itself over the same horizon. Investors who focus on consistency and index-style exposure may find that more relevant than chasing the highest short-term figures, especially given the smallcap risk profile.
Source data date: as of 15 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Sona BLW Precision Forgings Ltd | Automobile & Ancillaries | 1.65% |
| Ather Energy Ltd | Domestic Equities | 1.49% |
| Karur Vysya Bank Ltd. | Bank | 1.49% |
| Navin Fluorine International Ltd. | Chemicals | 1.45% |
| Welspun Corp Limited | Iron & Steel | 1.42% |
| Piramal Finance Ltd | Finance | 1.26% |
| Delhivery Ltd | Logistics | 1.16% |
| HFCL Ltd | Telecom | 1.16% |
| Central Depository Services (India) Ltd | Business Services | 1.13% |
| RBL Bank Ltd. | Bank | 1.07% |
The top 10 holdings account for approximately 13.28% of the portfolio.
To see all holdings, visit the Kotak Nifty Smallcap 250 Index Fund Direct Growth Plan page
The largest holding is Sona BLW Precision Forgings Ltd at 1.65%, and the tenth holding is still close at 1.07%. That narrow spread at the top suggests the disclosed leaders are fairly evenly sized, even though no single position is large enough to dominate the fund on its own.
At the same time, the top 10 together form only 13.28% of the portfolio, which points to a long tail of additional holdings across the rest of the scheme. With 62 disclosed holdings and more beyond the first 10, the fund may be carrying diversified single-name exposure rather than leaning heavily on a few positions. That structure could help reduce the influence of any one holding, but it also means performance may depend on many smaller contributors.
For investors, the practical takeaway is that this is not a concentrated stock-picking style portfolio in the usual sense. The individual weights are modest, and the broader holding set may spread outcome drivers across many companies, which is consistent with an index-based smallcap approach.
Source data date: as of 15 Sep 2026
Who should invest
This fund suits investors with a high tolerance for volatility and a long horizon, because the underlying segment can move sharply even when the portfolio follows an index. The one-year result is positive but modest, and the unavailable longer-horizon figures mean the case for the fund rests more on its smallcap exposure and benchmark-relative resilience than on a proven long-term record.
The main trade-off is clear: investors may accept uneven short-term outcomes in exchange for exposure to a broad basket of smaller companies. The low expense ratio and modest individual holding weights support a rules-based approach, but the High Risk label means it is better considered as a patient allocation rather than a stability-first holding.
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 Smallcap 250 Index Fund Direct Growth Plan?
Its NAV is ₹11.637 as of 15 September 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year return is 3.84%, while the 3-year and 5-year returns are Data not available.
How has the fund performed versus the benchmark?
Over 1 year, the fund returned 3.84% versus the benchmark’s -8.27%. Over 3 months, it returned 3.19% versus -3.63%, and over 1 month it fell 2.27% versus -4.81% for the benchmark.
How does it compare with the peer funds listed here?
Its 1-year return is lower than the better-performing peer schemes listed in this review. Some peers also have longer-period figures available, and those show materially stronger numbers than this fund’s available history.
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 Satish Dondapati, Abhishek Bisen and Jeetu Valechha Sonar. The exit load is nil, so units can be sold without an exit charge.
Bottom line
Kotak Nifty Smallcap 250 Index Fund Direct Growth Plan has shown a mixed recent pattern, with short-term swings but a positive one-year return that beats the benchmark’s weaker stretch. The peer set highlights a clear gap versus stronger recent performers, while the fund’s High Risk profile and modest holding sizes point to broad smallcap exposure rather than concentration. In our view, it fits investors who want a patient, volatility-aware smallcap allocation and are comfortable with uneven outcomes along the way.
Published on 16 September 2026 at 9:59 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.