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

Kotak Small Cap Fund Direct Growth Plan has a NAV of ₹328.954 as of 27 August 2026 and a scheme AUM of ₹18,932 Cr. Its 1-year, 3-year and 5-year returns are 8.4289%, 13.7839% and 14.4473%, and the fund sits in the High Risk category.

Our view is that this is a small-cap-oriented option with meaningful equity risk, a portfolio that is heavily tilted toward smaller companies, and returns that have stayed reasonably steady over longer horizons even if the recent 1-year figure is more modest. It is more suitable for investors who can tolerate sharp moves and want a small-cap allocation with broad sector spread rather than a narrow theme.

Quick facts

Metric	Value
NAV	₹328.954
AUM	₹18,932 Cr
Expense Ratio	0.53%
Launch Date	01 January 2013
Min SIP	₹100
Risk Category	High Risk
Benchmark	Nifty Small Cap
Fund Category	Equity
Exit Load	Nil upto 10% of investment and 1% for remaining investment on or before 1Y, Nil after 1Y
Fund Managers	Harish Bihani

The fund is managed by Harish Bihani.

Source data date: as of 27 Aug 2026

Performance

Period	Fund return	Benchmark return
1M	4.09%	3.9%
3M	9.39%	8.48%
1Y	8.43%	8.56%
3Y	13.78%	14.23%
5Y	14.45%	15.79%

The recent picture is mixed but not weak. Over 1 month and 3 months, the fund has stayed close to the benchmark and has slightly exceeded it, which suggests the portfolio has held up reasonably in the near term.

The 1-year return is almost in line with the benchmark, but the fund trails the index a little at 3 years and 5 years. That gap is not large, yet it does matter because it shows the fund has participated in the small-cap cycle without consistently beating the benchmark over the longer holding periods.

The time pattern also matters. The 3-year and 5-year paths show a clear rise followed by phases of volatility and partial giveback, which is typical of small-cap exposure, but the broad compounding trend remains intact. For investors, that means the fund has not delivered a straight-line outcome; instead, it has rewarded patience more than timing.

Overall, the fund looks stronger on short-term resilience than on benchmark outperformance. Its longer-term return profile is respectable, but the benchmark has been a bit better over 3-year and 5-year windows.

Source data date: as of 27 Aug 2026

Should you BUY or HOLD Kotak Small Cap?

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 Small Cap Fund Direct Growth Plan	8.4289%	13.7839%	14.4473%
TRUSTMF Small Cap Fund Direct Growth Plan	34.453%	Data not available	Data not available
Bank of India Small Cap Fund Direct Growth Plan	29.8577%	23.6915%	21.6131%
Motilal Oswal Small Cap Fund Direct Growth Plan	27.3968%	Data not available	Data not available
Union Small Cap Fund Direct Growth Plan	26.5565%	19.2487%	19.1461%
ITI Small Cap Fund Direct Growth Plan	24.4962%	27.0623%	20.7449%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

The current fund’s 1-year return is well below the stronger peer figures in this set, while its 3-year and 5-year returns are also lower than the available longer-term peer results. The comparison tells a consistent story: peers with published longer histories have shown more forceful compounding, whereas this fund has been steadier but less aggressive.

That does not make the fund unsuitable, but it does mean the recent and longer-term peer comparisons point in the same direction. The fund has not matched the stronger peer return bands available here, so investors comparing only on performance may see more upside evidence in some peers, especially on the 1-year and multi-year measures.

Source data date: as of 27 Aug 2026

Portfolio: where your money goes

The market-cap mix is 7.21% large cap, 11.63% mid cap, 79.51% small cap and 1.65% other. That is a clear small-cap tilt, but the presence of some large-cap and mid-cap exposure can help temper the portfolio’s movement at the margin.

Sector	Allocation	Top holdings
HEALTHCARE	17.75%	ASTER DM HEALTHCARE LTD (3.97%), VIJAYA DIAGNOSTIC CENTRE PVT (3.09%)
INFRASTRUCTURE	11.27%	HINDUSTAN CONSTRUCTION CO.LTD (3.01%), IRB INFRASTRUCTURE DEVELOPERS LTD (2.94%)
AUTOMOBILE & ANCILLARIES	8.85%	SANSERA ENGINEERING LTD (2.69%), MINDA CORPORATION LIMITED (1.72%)
FINANCE	6.32%	SHRIRAM FINANCE LIMITED (1.55%), FIVE STAR BUSINESS FINANCE LTD (1.47%)
REALTY	5.86%	BRIGADE ENTERPRISES LIMITED (4.3%), MAHINDRA LIFESPACE DEVELOPERS LTD (1.07%)

Healthcare is the largest sector at 17.75%, which is noticeably above infrastructure at 11.27% and automobile & ancillaries at 8.85%. That means healthcare may have greater influence on short-term portfolio behaviour than any other single sector.

The spread across five sectors suggests the fund is not built around one narrow bet, even though small caps dominate the market-cap profile. Realty and finance are smaller pieces of the mix, so they may contribute to returns, but healthcare and infrastructure are likely to matter more for portfolio swings.

Overall, the portfolio combines a strong small-cap core with sector diversification across healthcare, infrastructure, automobiles, finance and realty. That structure may help prevent the fund from becoming overly dependent on a single industry, but it does not reduce the inherent volatility that comes with such a high small-cap share.

Source data date: as of 27 Aug 2026

Who should invest

This fund fits investors who are comfortable with High Risk equity exposure and can hold through uneven stretches. The 1-year return is close to the benchmark, while the 3-year and 5-year returns remain below it, so the fund suits someone who values small-cap participation but accepts that the benchmark has been a little stronger over longer windows.

The main trade-off is between small-cap upside and volatility. With nearly four-fifths of the portfolio in small caps, the fund may move sharply, even though the sector spread is reasonably broad. A longer horizon is more appropriate here because the return path has shown periods of recovery and setback rather than smooth 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: Nil upto 10% of investment and 1% for remaining investment on or before 1Y, Nil after 1Y.

Source data date: as of 27 Aug 2026

Frequently asked questions

What is the current NAV of Kotak Small Cap Fund Direct Growth Plan?
Its NAV is ₹328.954 as of 27 August 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The returns are 8.43% for 1 year, 13.78% for 3 years and 14.45% for 5 years.

How does the fund compare with its benchmark?
It is close to the benchmark in the short term, but it trails the Nifty Small Cap slightly over 3-year and 5-year periods.

How does it compare with the peer funds shown here?
Its 1-year return is below the stronger peer figures in this set, and its available 3-year and 5-year returns are also lower than the longer-term peer numbers shown here.

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 Harish Bihani. The exit load is nil up to 10% of investment and 1% for the remaining investment on or before 1 year, and nil after 1 year.

Bottom line

Kotak Small Cap Fund Direct Growth Plan has delivered a steadier recent showing than its longer-term benchmark gap suggests, but the benchmark still leads over 3-year and 5-year horizons. Against the peers shown here, the fund’s available return numbers are more subdued. The portfolio is heavily small-cap in nature, with healthcare as the largest sector, so it carries the kind of volatility investors expect from this segment. It is best suited to investors who can tolerate High Risk equity exposure and are comfortable with a long holding period.

Published on 28 August 2026 at 10:41 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.