Kotak Overnight Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Kotak Overnight Fund Direct Growth Plan had a NAV of ₹1471.3385 as of 17 Sep 2026 and a scheme AUM of ₹8,617 Cr. Its 1-year, 3-year and 5-year returns are 5.29%, 6.08% and 5.72%, and it carries a Low Risk tag. Our view is that this is a fit for investors who want a short-horizon parking option with steady behaviour rather than meaningful upside, especially because the portfolio is dominated by cash-equivalent and treasury-style instruments.

The fund has also stayed close to its stated benchmark over longer periods, but the recent 1-year result is still modest and below several comparable liquid funds. That makes it more suitable for capital preservation and liquidity management than for investors looking for a return-led core allocation.

Quick facts

Particular	Details
NAV	₹1,471.3385 as of 17 Sep 2026
AUM	₹8,617 Cr
Expense Ratio	0.08%
Launch Date	15 Jan 2019
Risk Category	Low Risk
Benchmark	Nifty 50
Fund Category	Equity
Exit Load	No exit load
Fund Managers	Deepak Agrawal, Sunil Pandey

The fund is managed by Deepak Agrawal and Sunil Pandey.

Source data date: as of 17 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.40%	-3.66%
3M	1.26%	-3.71%
1Y	5.29%	-7.13%
3Y	6.08%	5.82%
5Y	5.72%	5.72%

The short-term picture has been stable rather than exciting. Over 1 month and 3 months, the fund posted small positive gains while the benchmark was negative, which points to the kind of day-to-day steadiness investors usually expect from an overnight-style strategy.

Over 1 year, the fund’s return improved enough to stay comfortably positive, while the benchmark was still in negative territory. That tells us the fund has protected capital better than the benchmark over the recent one-year window, even if the absolute return is not high.

The longer view is more measured. The 3-year return is slightly ahead of the benchmark, and the 5-year number is identical to it, so there is no sign of a persistent gap either way. Our view is that the fund has delivered consistency more than excess return, which is useful for cash management but not for chasing performance.

The pattern across the return history also suggests limited volatility compared with equity-oriented funds. There are small ups and downs, but not the kind of wide swings that would change the investment case materially. For an investor, the key takeaway is that this fund has behaved like a low-drift parking vehicle, with returns that broadly track short-term money-market conditions rather than equity market moves.

Source data date: as of 17 Sep 2026

Should you BUY or HOLD Kotak Overnight?

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 Overnight Fund Direct Growth Plan	5.29%	6.08%	5.72%
Aditya Birla SL Liquid Fund Direct Growth Plan	6.59%	7.02%	6.41%
Axis Liquid Fund Direct Growth Plan	6.59%	7.01%	6.40%
Sundaram Liquid Fund Direct Growth Plan	6.58%	7.00%	6.38%
JioBlackRock Liquid Fund Direct Growth Plan	6.57%	Data not available	Data not available
Nippon India Liquid Fund Direct Growth Plan	6.56%	6.99%	6.37%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the return figures available here, the fund trails the stronger liquid-fund peers over 1 year, 3 years and 5 years, though the gap is not extreme. The short-term comparison is more clearly in the peers’ favour, while the longer-term comparison still shows the same pattern of peers generating slightly higher returns without changing the fund’s low-volatility profile.

What stands out is that the fund’s recent 1-year result is below every listed peer, but its 3-year and 5-year figures remain close enough to suggest the fund is still serving a liquidity-first role rather than a return-chasing one. That is an important distinction for investors comparing overnight and liquid strategies.

Source data date: as of 17 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
The Clearing Corporation of India Limited	Cash & Cash Equivalents and Net Assets	73.18%
Triparty Repo	Cash & Cash Equivalents and Net Assets	22.70%
182 Days Treasury Bill 03/09/2026	Treasury Bills	1.51%
91 Days Treasury Bill 24/09/2026	Treasury Bills	1.16%
AMC Repo Clearing Ltd	Cash & Cash Equivalents and Net Assets	1.16%
182 Days Treasury Bill 18/09/2026	Treasury Bills	0.58%

The largest holding is The Clearing Corporation of India Limited at 73.18%, which is an unusually large single position even for a short-term debt-oriented structure. That kind of weight means the fund’s day-to-day behaviour may be heavily shaped by a single cash-equivalent exposure.

The drop from the largest line item to the rest of the portfolio is steep. The second holding is 22.70%, and the remaining positions are all close to or below the 1.5% range, so the exposure after the first two holdings falls away very quickly. In practical terms, the disclosed holdings are more about managing liquidity than spreading risk across many independent return drivers.

All six disclosed holdings together account for 100% of the portfolio, which means there is no longer tail in the visible allocation set. That suggests the fund is tightly built around cash and treasury instruments, and the smaller positions may contribute mainly to operational liquidity and short-term deployment rather than to return differentiation.

Source data date: as of 17 Sep 2026

Who should invest

This fund suits investors with a low-risk tolerance who want money parked for a short period, or who need a liquid holding that is less sensitive to market swings. Its Low Risk tag, stable short-term behaviour and benchmark-like longer-term outcome make it more appropriate for capital preservation than for return seeking.

The main trade-off is that the fund may offer steadier behaviour and easier parking of cash, but the return profile is modest. Investors who can accept that trade-off and who value consistency over upside may find the profile useful, while those looking for materially higher returns would need a different risk budget and a longer horizon.

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 17 Sep 2026

Frequently asked questions

What is the current NAV of Kotak Overnight Fund Direct Growth Plan?
The NAV is ₹1471.3385 as of 17 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
Its returns are 5.29% for 1 year, 6.08% for 3 years and 5.72% for 5 years.

How does it compare with its benchmark?
It has edged ahead of the benchmark over 1 year and 3 years, while the 5-year return matches the benchmark at 5.72%.

How does it compare with the listed peer funds?
The listed peers show higher 1-year returns, and the same pattern broadly continues in the 3-year and 5-year figures where available.

Is there a minimum SIP amount?
A minimum SIP amount is not specified here, so it is not listed in the quick facts or FAQs.

Who manages the fund and what is the exit load?
The fund is managed by Deepak Agrawal and Sunil Pandey. The exit load is nil, so there is no exit load on redemption.

Bottom line

Kotak Overnight Fund Direct Growth Plan looks built for stability rather than standout returns. Its recent numbers are positive and its longer-term pattern is broadly in line with the benchmark, but peer liquid funds have done better on the available return measures. The portfolio is heavily concentrated in cash-equivalent and treasury-style exposures, which supports a low-volatility profile. Our view is that this suits investors who want a short-term parking option and are comfortable with modest gains in exchange for steadier behaviour.

Published on 18 September 2026 at 4:14 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.