Kotak Flexicap Fund: A top performing flexicap fund with strong alpha creation potential

Current market context

After many months of high volatility due to trade relate and geo-political uncertainties, equity market rebounded after India and United States agreed on a trade deal, which reduced tariffs on India's exports to the US substantially (down from 50% to 18%), putting India in a competitive positioning relative to other exporter countries. On the macro front, India continues to occupy a sweet spot with robust GDP growth, narrowing fiscal deficit, stable inflation and revival of consumption demand, backed by Government's economic policies. The market has rebounded from post Budget lows, but risk factors namely, geo-political uncertainties, risks of slowdown in developed economies e.g. US and cut in tech spending persist in the near to medium term.

Why Flexicap in these conditions?

In the current market / economic environment, a flexicap approach may be suitable for long term investors. A flexicap fund has the flexibility to invest across any market cap segments without any market cap limit mandate from SEBI. A flexicap fund manager has the flexibility to capitalize on market opportunities by re-orienting the portfolio and also provide relative stability in volatile markets by quickly shedding risks if situation demands. In this article, we will review Kotak Flexicap Fund, one of the top performing flexicap funds. The fund has a track record of 16 years and has consistently outperformed the benchmark index and category average.

Superior risk adjusted return relative to benchmark

Kotak Flexicap Fund has displayed potential of delivering higher returns while reducing downside risks compared to the benchmark index. The charts below shows the median and minimum rolling returns of fund versus the benchmark index over different investment tenures since the inception of the fund. You can see that the fund delivered higher median returns and had smaller drawdowns compared to the benchmark index, over different investment tenures.

Source: Advisorkhoj Research, as on 16^th February 2026

The fund offer superior investment experience (risk versus return) trade to investors with lower percentage instances of negative returns and higher percentage instances of 12%+ CAGR returns over different investment tenures compared to the benchmark index (see the table below).

Source: Advisorkhoj Research, as on 16^th February 2026. *Inception of Kotak Flexicap Fund. 1. Kotak Flexicap Fund. 2. Nifty 500 TRI

Consistently outperformed peer average

The chart below shows the 5 year rolling returns of Kotak Flexicap Fund versus the category average since the inception of the scheme. You can see that the fund consistently outperformed the category average.

Source: Advisorkhoj Research, as on 16^th February 2026

The fund offer superior investment experience (risk versus return) trade to investors with lower percentage instances of negative returns and higher percentage instances of 12%+ CAGR returns over different investment tenures compared to the category average (see the table below).

Source: Advisorkhoj Research, as on 16^th February 2026. *Inception of Kotak Flexicap Fund. 1. Kotak Flexicap Fund. 2. Nifty 500 TRI

Smaller drawdowns

The last 18 months have been volatile for equity market. Kotak Flexicap Fund experienced smaller drawdowns and limited downside risks for investors compared to the benchmark index (see the chart below).

Source: Advisorkhoj Research. Period: 1^st September 2024 to 16^th February 2026.

Wealth creation track record

The chart below shows the growth of Rs 10,000 monthly SIP in Kotak Flexicap Fund since the inception of the scheme. You can see that with an cumulative investment of around Rs 20 lakhs over the last 16.5 years or so, you could have accumulated a corpus of around Rs 76 lakhs.

Source: Advisorkhoj Research, as on 16^th February 2026. *Since inception of the scheme

SWP returns

The chart below shows the results of Rs 30,000 monthly SWP over the last 10 years from an investment of Rs 50 lakhs in Kotak Flexicap Fund. You can see that despite withdrawing Rs 36 lakhs, the value of the balance units in the fund grew to around Rs 1.37 crores. The fund was not only able to generate cash-flows, it also provided capital appreciation to investors.

Source: Advisorkhoj Research, as on 16^th February 2026.

Investment Approach

Current portfolio positioning

Source: Kotak MF, as on 31^st January 2026

Why invest in Kotak Flexicap Fund?

• Different sectors perform varyingly across market / economic phases


• Top-Down investment approach to select outperforming sectors


• Concentrated sector bets to create alpha by investing in outperforming sectors


• Bottom-up stock picking within selected sectors


• Diversified portfolio at stock level


• Flexibility to move across market capitalization ranges based on fund manager's outlook to optimize risk / return in different market phases

Who should invest in Kotak Flexicap Fund?

• Investors seeking capital appreciation and wealth creation over long investment tenures


• Investors who want to invest for their long term financial goals


• Investors who want exposure across market cap segments


• Investors with sufficiently high risk appetites


• Investors with minimum investment tenures of 5 years


• Investors who want to invest from their monthly savings through SIP

Investors should consult with their financial advisors or mutual fund distributors if Kotak Flexicap Fund is suitable for their investment needs.