Kotak Flexicap Fund: Long track record of consistent wealth creation
Mutual fund schemes that invest across market cap segments have always been popular with retail investors. Different market cap segment has different risk / return profiles and outperform each other in different phases of market cycles (see the chart below). The advantage of flexicap funds over other diversified equity funds is that flexicap funds do not have any market cap specific mandate. As per AMFI July data, flexicap funds had the largest asset under management among all diversified equity mutual funds. In this article, we will review Kotak Flexicap Fund which has a 15 year plus strong track record of wealth creation.
Source: NSE, Advisorkhoj Research, as on 31st December 2025
About Kotak Flexicap Fund
The fund was launched in September 2009 and has given 14.12% CAGR returns since inception outperforming its benchmark index, Nifty 500 TRI. If you invested Rs 1 lakh at the inception of the fund, the value of your investment would have multiplied more than 8X to Rs 8.25 lakhs (as on 29th August 2025). The fund has an AUM of Rs 53,626 crores and the expense ratio of the regular plan is 1.44% only (as on 29th August 2025)
Source: Advisorkhoj Research, as on 29th August 2025
Strong track record of consistency - Rolling Returns
Rolling returns is the most unbiased measure of a mutual fund scheme's performance because it considers the performance of the scheme in all market conditions. The chart below shows the 3 year rolling returns (rolling returns for 3 year investment tenures) versus its benchmark index since the inception of the fund. You can see that the fund has outperformed the benchmark index on a fairly consistent basis across all market conditions.
Source: Advisorkhoj Research, as on 29th August 2025
Consistent outperformance across different investment tenures
The table below shows the average, median, maximum and minimum rolling returns of Kotak Flexicap Fund versus its benchmark index for different investment tenures since the inception of the fund. You can see that the fund not only had higher average and median returns, the minimum returns of the fund were also lower than that of the benchmark returns index.
Source: Advisorkhoj Research, as on 29th August 2025
The chart below shows the rolling returns distribution of the Kotak Flexicap Fund for different investment returns versus the benchmark index since the inception of the fund. You can see that the fund has lesser percentage instances of negative rolling returns over 1 and 3 year investment tenures compared to the benchmark instances. At the same the percentage instances of 12%+ CAGR returns of the fund (outlined in red) was significantly higher than that of the benchmark index. Further the percentage instances of 20%+ CAGR returns was also higher for the fund compared to the benchmark index. In other words, Kotak Flexicap Fund provided better risk / reward trade-off compared to the benchmark index.
Source: Advisorkhoj Research, as on 29th August 2025
Wealth creation through SIP
The chart below shows the growth of Rs 10,000 monthly SIP in the Kotak Flexicap Fund since the inception of the scheme. You can see that with a cumulative investment of less than Rs 20 lakhs (Rs 19.2 lakhs) you could have accumulated a corpus of over Rs 70 lakhs (Rs 71.4 lakhs) through SIP.
Source: Advisorkhoj Research, as on 29th August 2025
Consistency of SIP returns - SIP Rolling Returns
The chart below shows the 10 year SIP rolling XIRR of Kotak Flexicap Fund versus its benchmark index since the inception of the scheme. You can see that the fund has almost always given double digit SIP XIRR since its inception over 10 year SIP tenures.
Source: Advisorkhoj Research, as on 29th August 2025
The table below shows the XIRR distribution for different rolling SIP tenures versus the benchmark index since the inception of the scheme. You can see that the percentage instances of 12%+ SIP XIRR for the scheme is higher than that of the benchmark for different SIP tenures. Also observe that the percentage instances of 12%+ SIP XIRR increases with SIP tenures. Therefore, investors should always have long investment tenures for SIP.
Source: Advisorkhoj Research, as on 29th August 2025
Cash-flows through SWP
The chart below shows the results of Rs 30,000 monthly SWP from an investment of Rs 50 lakhs in Kotak Flexicap Fund over the last 10 years. You can see that despite withdrawing more Rs 36 lakhs (from the initial investment of Rs 50 lakhs), the current value of the balance units has grown to nearly Rs 94 lakhs (as on 29th August 2025).
Source: Advisorkhoj Research, as on 29th August 2025
Smaller drawdowns
The table below shows the major corrections (in descending order of magnitude) in the equity market and, how the fund and the benchmark index performed in these drawdowns. Please note that the maximum drawdown is the correction from peak (start date) to trough (end date). You can see that Kotak Flexicap Fund had lesser drawdowns relative to the benchmark index in most major corrections. You can also see that the fund has able to recover faster than the benchmark index from the trough in most corrections.
Source: Advisorkhoj Research, as on 29th August 2025
In the chart below we have drilled down into the drawdowns of the fund versus the benchmark index over the last 1 year. Though the market has bottomed out in March, volatility persists. You can see that Kotak Flexicap Fund was able to limit downside risks for investors relative to the benchmark index.
Source: Advisorkhoj Research, as on 29th August 2025
Current portfolio positioning
The investment focus is on businesses that have reasonable visibility on earnings going forward. Top overweight sectors are Capital Goods, Construction Materials and Chemicals, where the fund manager expects the industry fundamentals to get better. The key underweight sectors in the portfolio are - Financial Services, FMCG and Healthcare. The fund has significantly higher allocations to large cap stocks compared to the peer average; this is prudent in current uncertain economic conditions and valuation scenario.
Source: Kotak MF Fund Factsheet, as on 31st July 2025
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.
Mutual Fund Investments are subject to market risk, read all scheme related documents carefully.
Established in 1985 by Mr. Uday Kotak, it was the first Indian non-banking financial company to be given a banking licence by the Reserve Bank of India in February 2003.The group caters to the financial needs of individuals and institutional investors across the globe. Kotak Mutual Fund is the wholly-owned subsidiary of Kotak Mahindra Bank Limited. Kotak Mutual Fund started its operations in December 1998 and is now the 5th largest AMC based on quarterly Average AUM as of December 2020.
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