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 ₹323.253 as of 17 Sep 2026 and a scheme AUM of ₹19,678 Cr. Its 1-year, 3-year and 5-year returns are 2.97%, 11.58% and 12.29% respectively, and the fund sits in the High Risk category.

Our view is that this is a small-cap fund suited to investors who can tolerate sharp swings and can stay invested long enough for the portfolio to work through its cycle. The benchmark comparison shows that the fund has lagged the index over 1Y, 3Y and 5Y, so the recent return profile does not point to an edge over its stated benchmark.

Quick facts

Particular	Details
NAV	₹323.253 as of 17 Sep 2026
AUM	₹19,678 Cr
Expense Ratio	0.53%
Launch Date	01 Jan 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 17 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-1.98%	-1.84%
3M	3.88%	2.25%
1Y	2.97%	4.94%
3Y	11.58%	13.77%
5Y	12.29%	13.97%

Recent performance has been mixed. Over 1 month, the fund was slightly weaker than the benchmark, but the 3-month figure improved and moved ahead of the index. That pattern tells us the fund has had pockets of recovery, yet the latest 1-year result still sits below the benchmark.

The longer view is more important here, and it is also softer than the benchmark. The 3-year and 5-year returns remain positive, but both trail the index, which tells us the fund has compounded at a slower pace than the benchmark over medium and longer horizons.

The shape of the return path also suggests that the fund has not moved in a straight line. There were phases of recovery after weaker stretches, but the improvement has not been strong enough to close the gap with the index over 1Y, 3Y or 5Y. For investors, that means the fund has participated in the small-cap cycle, but not with consistent outperformance.

In our view, the key takeaway is that the short-term improvement does not yet alter the longer-term picture. The fund has shown enough bounce in the recent quarter to avoid looking weak across every horizon, but the benchmark remains ahead across the broader periods that matter most for a small-cap allocation.

Source data date: as of 17 Sep 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	2.97%	11.58%	12.29%
TRUSTMF Small Cap Fund Direct Growth Plan	27.33%	Data not available	Data not available
Bank of India Small Cap Fund Direct Growth Plan	24.01%	20.78%	19.46%
Motilal Oswal Small Cap Fund Direct Growth Plan	19.7%	Data not available	Data not available
Union Small Cap Fund Direct Growth Plan	18.13%	16.46%	16.71%
ITI Small Cap Fund Direct Growth Plan	17.75%	23.78%	18.52%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On 1-year return, the fund trails the strongest peer figures by a wide margin, while its 3-year and 5-year figures also sit below the better available peer numbers. That said, the peer set is mixed because some funds have missing medium-term data, so the comparison is most useful as a broad read on recent and longer-term return strength rather than a full one-to-one tie-up.

What stands out is that the fund’s shorter-term bounce has not yet translated into a stronger multi-year showing versus the better-disclosed peers. Bank of India Small Cap Fund and ITI Small Cap Fund both show stronger 3-year and 5-year outcomes, while Union Small Cap Fund is also ahead on the available longer-term figures. The short-term peer picture is even more stretched, which reinforces that this fund has recently lagged several comparable options on raw return data.

Source data date: as of 17 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Aster DM Healthcare Ltd	Healthcare	4.29%
Vijaya Diagnostic Centre Pvt	Healthcare	4.21%
Sansera Engineering Ltd	Automobile & Ancillaries	4.15%
Krishna Institute of Medical	Healthcare	3.25%
Kalpataru Projects International Limited	Infrastructure	2.54%
Minda Corporation Limited	Automobile & Ancillaries	2.39%
Century Plyboards (India) Ltd.	Construction Materials	2.25%
Five Star Business Finance Ltd	Finance	2.12%
Shriram Finance Limited	Finance	2.03%
Ajanta Pharma Ltd.	Healthcare	1.99%

The top 10 holdings account for approximately 29.22% of the portfolio.

To see all holdings, visit the Kotak Small Cap Fund Direct Growth Plan page

The largest holding, Aster DM Healthcare Ltd, is 4.29%, so no single position dominates the visible book. The gap from the largest holding to the tenth holding is modest rather than dramatic, which suggests the disclosed names are fairly evenly spread across several mid-sized positions instead of being concentrated in one or two outsized bets.

The mix leans toward healthcare, with multiple healthcare names among the largest holdings, alongside automobile & ancillaries, finance, infrastructure and construction materials. With 29.22% in the top 10 and 71 total holdings disclosed, the portfolio may still have a meaningful tail beyond the largest positions, so the visible exposure is not narrowly confined to a handful of stocks.

That said, the top positions are still likely to have greater influence on the fund’s short-run behaviour than the smaller holdings. For a small-cap fund, this kind of spread may help reduce single-stock dependence, but it does not remove the higher volatility that comes with the category.

Source data date: as of 17 Sep 2026

Who should invest

This fund is better aligned with investors who can handle a High Risk profile and stay invested through uneven periods. The 1-year return is weak relative to the benchmark and several peers, while the 3-year and 5-year numbers are still positive but not especially strong versus the benchmark or the better-disclosed peer figures.

The main trade-off is clear: investors get exposure to a diversified small-cap portfolio, but they have to accept weaker recent relative performance and the possibility of sharper swings. A longer horizon is important here because the return pattern shows recovery phases, not a smooth compounding path. For investors who want small-cap exposure and can tolerate volatility, the fund may fit as a satellite allocation rather than a core stability 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: Nil upto 10% of investment and 1% for remaining investment on or before 1Y, Nil after 1Y.

Source data date: as of 17 Sep 2026

Frequently asked questions

What is the current NAV of Kotak Small Cap Fund Direct Growth Plan?
The current NAV is ₹323.253 as of 17 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year, 3-year and 5-year returns are 2.97%, 11.58% and 12.29%.

How does the fund compare with its benchmark?
It trails Nifty Small Cap across 1-year, 3-year and 5-year periods, although it is slightly ahead over 3 months.

How does it compare with the peer funds listed here?
Its 1-year return is below the stronger peer figures shown, and its 3-year and 5-year returns are also below the better available peer numbers.

Is there a minimum SIP amount?
Yes. 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 a mixed return profile: the recent 1-year figure is weak versus the benchmark and several peers, while the 3-year and 5-year numbers remain positive but still trail the index. The portfolio is spread across 71 holdings, with healthcare visible among the largest positions, so the fund does not rely on a single dominant stock. Overall, it looks more suitable for investors with a long horizon and high tolerance for volatility than for those looking for steady relative outperformance.

Published on 18 September 2026 at 3:17 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.