Kotak NIFTY Midcap 50 Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Kotak NIFTY Midcap 50 Index Fund Direct Growth Plan is valued at ₹11.036 as of 10 Sep 2026, with scheme AUM of ₹81 Cr. Its 1-year, 3-year and 5-year returns are 9.7%, 0% and 0%, and it sits in the High Risk bucket. Our view is that this is best read as a young index strategy with limited live-history evidence, so the short record matters more than any long-run pattern at this stage.

The fund can suit investors who want midcap exposure through a rules-based approach and can accept sharp swings along the way. The main trade-off is clear: the portfolio offers diversified midcap participation, but the available performance history is still short and the benchmark has been uneven, so expectations should stay modest and time horizon should stay long.

Quick facts

Particular	Details
NAV	₹11.036 as of 10 Sep 2026
AUM	₹81 Cr
Expense Ratio	0.25%
Launch Date	16 Aug 2024
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 10 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-2.08%	-4.06%
3M	6.48%	1.37%
1Y	9.7%	-7.31%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The recent picture is mixed but not weak. Over 1 month, the fund fell less than the benchmark, which suggests some relative resilience in a short setback. Over 3 months, it moved ahead of the benchmark by a useful margin, and that tells us the fund has recovered better than the comparison index in the near term.

The 1-year figure is the clearest positive point. A 9.7% return against a -7.31% benchmark return shows meaningful outperformance in the period available, although the comparison benchmark itself has been choppy. That makes the edge look real, but we would still treat it as a one-year snapshot rather than a stable track record.

The time pattern also matters. The one-year path shows a stretch of weakness earlier in the period, followed by recovery and then a softer finish near the end. That shape fits a midcap-oriented strategy more than a defensive one. For long-horizon investors, the key message is that this fund has shown better recent compounding than the benchmark, but the live history is still too short to lean on long-run behaviour.

Because the 3-year and 5-year figures are not available, there is no mature trailing record to anchor judgment. Our view is that the fund is currently better understood as a short-history, higher-volatility midcap index option than as a proven long-cycle performer.

Source data date: as of 10 Sep 2026

Should you BUY or HOLD Kotak NIFTY Midcap 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.

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Peer comparison

Fund	1Y return	3Y return	5Y return
Kotak NIFTY Midcap 50 Index Fund Direct Growth Plan	9.7%	Data not available	Data not available
ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan	33.08%	30.07%	Data not available
Motilal Oswal Nifty India Defence Index Fund Direct Growth Plan	26.95%	Data not available	Data not available
Aditya Birla SL Nifty India Defence Index Fund Direct Growth Plan	26.94%	Data not available	Data not available
Tata Nifty Capital Markets Index Fund Direct Growth Plan	24.33%	Data not available	Data not available
Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan	23.74%	Data not available	Data not available

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the available 1-year figures, this fund trails all five peer funds listed here, with the widest gap versus the fastest-growing thematic peers. The absence of 3-year and 5-year peer data for most names makes the longer-horizon comparison less conclusive, but where longer history is available, the current fund still does not show the same depth of track record.

That means the short-term comparison and the longer-term comparison tell different stories. In the near term, the fund has been positive, but in the peer set the best recent gains have been much stronger. For investors, the more important point is that the fund’s own record is still young, so the peer table is useful mainly as a context check rather than a basis for judging durability.

Source data date: as of 10 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
BSE Ltd	Finance	6.41%
Federal Bank Ltd.	Bank	3.81%
Laurus Labs Ltd	Healthcare	3.04%
Hero Motocorp Ltd.	Automobile & Ancillaries	3.01%
Multi Commodity Exchange of India Limited	Finance	2.96%
Indusind Bank Ltd.	Bank	2.87%
Persistent Systems Limited	IT	2.6%
Coforge Limited	IT	2.58%
AU Small Finance Bank Ltd.	Bank	2.55%
Bharat Heavy Electricals Ltd.	Capital Goods	2.55%

The top 10 holdings account for approximately 32.38% of the portfolio.

To see all holdings, visit the Kotak NIFTY Midcap 50 Index Fund Direct Growth Plan page

The largest holding, BSE Ltd, is 6.41%, which is meaningful but not overwhelming on its own. After that, weights step down fairly quickly into the 3% range, which suggests that no single stock dominates the disclosed top end of the portfolio.

The gap from the first holding to the tenth is notable, but the distribution still looks fairly balanced across the leading positions. The top 10 together make up 32.38% of the fund, so most of the portfolio sits beyond the displayed names and may matter more than any one stock in isolation. With 50 disclosed holdings in total, the strategy appears to spread exposure across a fairly long tail rather than rely on a very small cluster of positions.

That structure may help reduce single-stock dependence, although it also means returns can continue to reflect broad midcap moves more than a few headline names. In our view, the mix looks consistent with an index-style portfolio that aims for diversified participation rather than concentrated conviction.

Source data date: as of 10 Sep 2026

Who should invest

This fund is suited to investors who are comfortable with High Risk exposure and who can hold through uneven periods. The short record and the benchmark’s mixed behaviour suggest that it may not suit someone looking for a stable, low-volatility route.

The better fit is a long-term investor who wants midcap exposure through a rules-based strategy and can accept that short bursts of underperformance are possible. The main trade-off is between diversification within the midcap segment and the uncertainty that comes with a young live track record. If the goal is to participate in midcap growth over a multi-year horizon, the fund can fit that role; if the goal is smooth or defensive returns, it is less aligned.

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 NIFTY Midcap 50 Index Fund Direct Growth Plan?
Its NAV is ₹11.036 as of 10 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year return is 9.7%, while the 3-year and 5-year returns are Data not available.

How has the fund performed against its benchmark?
Over 1 year, the fund returned 9.7% against the benchmark’s -7.31%. Over 3 months, it returned 6.48% versus 1.37% for the benchmark.

How does it compare with the peer funds listed here?
On the available 1-year figures, it trails the peer funds listed here. Some peers also have longer history shown, but this fund’s own track record is still short.

What is the minimum SIP amount?
The minimum SIP amount is ₹100.

What are the fund’s risk profile, key holdings and exit load?
The fund is in the High Risk category, and its largest holding is BSE Ltd at 6.41%. It has no exit load.

Bottom line

Kotak NIFTY Midcap 50 Index Fund Direct Growth Plan has shown a better recent path than its benchmark, but the live record is still short and the longer trailing figures are not yet available. In the peer set, its available 1-year return is clearly behind the stronger thematic names, so the comparison argues more for context than for comfort.

The portfolio is diversified across 50 holdings, with the top 10 accounting for 32.38%, which keeps any single stock from dominating the fund. That makes it a straightforward midcap index-style option for investors who can tolerate High Risk exposure and want a long horizon, but it is not the kind of fund where short-term results alone should drive the decision.

Published on 11 September 2026 at 3:58 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.