Kotak US Specific Equity Passive FoF Fund Analyst Review: NAV, Returns and Key Insights 2026

The Kotak US Specific Equity Passive FoF Fund Direct Growth plan has posted a strong 1-year return of 58.60%, backed by a 3-month gain of 26.76%. With an AUM of Rs 4,214.61 crore and a current NAV of Rs 28.87, the fund has demonstrated consistent performance for investors aligned with its investment mandate. This analyst review covers returns, costs, risk factors, and suitability for 2026.

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What Is the Kotak US Specific Equity Passive FoF Fund?

The Kotak US Specific Equity Passive FoF Fund is an open-ended overseas Fund-of-Fund scheme that invests in units of internationally listed equity funds or ETFs, providing Indian investors indirect access to global equity markets without requiring an international trading account. Classified under FoFs Overseas with a Very High risk rating, the fund’s performance is influenced by both the underlying international market and relevant currency exchange movements.

Kotak US Specific Equity Passive FoF Fund NAV and AUM

The current NAV of the Kotak US Specific Equity Passive FoF Fund Direct Growth plan is Rs 28.87. NAV also reflects movements in applicable foreign currency exchange rates, as the underlying assets are priced in foreign currencies. Always verify the most recent NAV on the AMC website or a registered mutual fund platform before placing any transaction.

The fund manages Rs 4,214.61 crore in assets, indicating a healthy investor base with meaningful conviction in its investment approach and adequate liquidity for most investor needs. Investors should track AUM trends alongside performance metrics when evaluating this fund.

Kotak US Specific Equity Passive FoF Fund Returns: Performance Snapshot

Period	Returns
1 Month	11.91%
3 Months	26.76%
1 Year	58.60%
3 Years (Annualised)	35.46%
5 Years (Annualised)	23.74%

The Kotak US Specific Equity Passive FoF Fund has delivered strong multi-period returns with 58.60% over one year and 26.76% over three months. These figures reflect both the quality of the underlying investment universe and the general strength of the relevant market segment. Investors should assess current valuations carefully before committing fresh capital, even when past performance has been robust.

Expense Ratio and Cost Efficiency

The Kotak US Specific Equity Passive FoF Fund Direct Growth plan carries an expense ratio of 0.54% per annum, a competitive figure for its fund category. A lower expense ratio means a larger proportion of gross returns is retained by the investor. Combined with the direct plan’s elimination of distributor commissions, this provides a strong cost-to-value proposition over a long investment horizon.

Who Should Invest in Kotak US Specific Equity Passive FoF Fund?

The Kotak US Specific Equity Passive FoF Fund is best suited for investors seeking international diversification, with a Very High risk appetite and a minimum 5 to 7-year horizon. The minimum monthly SIP is Rs 100 and the minimum lumpsum is Rs 100. Conservative investors and those with short-term goals should avoid this fund. As an overseas FoF, it is best used as a satellite allocation of 10 to 15 percent within a predominantly domestic equity portfolio.

Key Risks to Consider

Currency Risk: Returns in INR are influenced by exchange rate movements. A strengthening rupee against the underlying foreign currency reduces India-adjusted gains even when the overseas market performs positively.

Geopolitical Risk: Global geopolitical events, trade policy shifts, or sovereign economic disruptions in the underlying market can materially affect fund performance and NAV trajectory.

Double Expense Layer: As a Fund-of-Fund, costs are incurred at both the underlying fund level and the FoF scheme level. Investors should factor this total cost structure into their net return expectations.

Market Volatility: Equity-linked funds can experience sharp short-term NAV corrections during periods of broad market sell-offs, sector-specific adverse events, or macro-level uncertainty.

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Conclusion

The Kotak US Specific Equity Passive FoF Fund has demonstrated consistent and strong returns backed by a solid AUM of Rs 4,214.61 crore and a competitive expense ratio of 0.54%. The 1-year return of 58.60% offers a compelling risk-adjusted proposition for eligible investors. Ensure this fund complements rather than dominates your portfolio, and consult a SEBI-registered investment advisor before investing.

Investments in securities are subject to market risk. This content is for educational purposes only and does not constitute investment advice.

Frequently Asked Questions

What is the current NAV of Kotak US Specific Equity Passive FoF Fund?

Ans. The current NAV of the Kotak US Specific Equity Passive FoF Fund Direct Growth plan is Rs 28.87. NAV is updated each trading day and reflects the closing market value of the fund’s underlying holdings. Always verify the most recent NAV on the AMC website or a SEBI-registered mutual fund platform before transacting.

What are the returns of Kotak US Specific Equity Passive FoF Fund?

Ans. The fund has delivered a 1-year return of 58.60% and a 3-month return of 26.76%. The 3-year annualised return is 35.46% and the 5-year annualised return is 23.74%. Past performance does not guarantee future results and should be evaluated alongside the fund’s risk profile and benchmark comparison.

What is the expense ratio of Kotak US Specific Equity Passive FoF Fund Direct Growth?

Ans. The expense ratio of the Kotak US Specific Equity Passive FoF Fund Direct Growth plan is 0.54% per annum. The direct plan eliminates distributor commissions and is more cost-efficient than the regular plan. Investors should always opt for the direct plan to maximise long-term net returns through the compounding advantage of lower costs.

Is this fund suitable for conservative investors?

Ans. No. This fund carries a Very High risk rating due to concentrated overseas and currency exposure. It is not suitable for conservative investors or those with short investment timelines. A minimum 5 to 7-year horizon and a high risk tolerance are required prerequisites. Consult a SEBI-registered investment advisor before investing.

What is the minimum SIP amount for this fund?

Ans. The minimum monthly SIP is Rs 100 and the minimum lumpsum investment is Rs 100. The low entry thresholds make the fund accessible across income levels. A regular SIP approach is recommended to average out entry costs over time, particularly given the high-volatility nature of this fund’s category.

What category and sub-category does this fund belong to?

Ans. This fund is an overseas Fund-of-Fund investing in internationally listed equity ETFs or funds. It falls under the FoFs Overseas sub-category and is available as a direct growth plan, which eliminates distributor commissions and typically offers superior net returns compared to the regular plan.