Kotak Multicap Fund posts stellar 4-year gains; strong 19% lumpsum CAGR, SIP return hits 24%

Kotak Multicap Fund has completed four years with a notable achievement: the actively managed equity scheme has crossed the Rs 20,000-crore AUM mark while doubling investor wealth since its launch in September 2021. This milestone comes at a time when equity markets have remained volatile, pushing the fund into the league of the top-performing multicap schemes in the country.

According to Kotak Mutual Fund, a lumpsum investment of Rs 10,000 made at the fund’s inception on 29 September 2021 would now be worth ₹20,678, delivering a CAGR of over 19%. This comfortably beats the fund’s benchmark, the Nifty 500 Multicap 50:25:25 TRI, which returned 14.48% CAGR during the same period. The fund’s strong performance extends to SIP investors as well. A  Rs 10,000 monthly SIP, amounting to a total investment of Rs 4.8 lakh, is now valued at Rs 7.61 lakh, generating an impressive 23.68% CAGR.

Jointly managed by Devender Singhal and Abhishek Bisen, the fund follows a disciplined multicap mandate, maintaining 25–50% allocation across large, mid, and small caps. Importantly, its performance has not come at the expense of excessive risk-taking. Key risk metrics highlight this:

Portfolio turnover ratio: 39.20%

Sharpe Ratio: 1.01

Standard deviation: 15.29%

The Sharpe Ratio of 1.01 indicates superior risk-adjusted performance compared to the benchmark and category peers.
Investment strategy: Growth with earnings visibility

Kotak Multicap Fund follows a diversified and benchmark-aware approach, investing in companies expected to deliver better-than-industry earnings growth. The fund focuses on sector leaders across market caps and aims to maintain balanced exposure. Recent changes in SEBI’s stock classification temporarily increased its mid-cap and small-cap weights. The fund house clarified that this was classification-driven and not an intentional shift.

“We will bring our mid- and small-cap allocation back in line with our model as we move ahead,” Kotak MF said in a statement.

Market environment

The fund house acknowledged that domestic markets have been highly volatile due to global geopolitical conflicts, trade tensions, elevated interest rates, and earnings downgrades in select sectors for FY26. Despite this, Kotak remains constructive on India, expecting:

Resilience in domestic-oriented businesses

Potential GST rate cuts to boost consumption

Steady earnings recovery in specific sectors

Why did Kotak Multicap click

Kotak Multicap Fund has managed to double investor money over four years due to a combination of disciplined strategy and strong market positioning. The fund maintains a balanced allocation across large, mid, and small caps, ensuring both stability and growth participation. Its stock-picking approach focuses on companies with clear earnings visibility and long-term growth potential, while a low portfolio churn reflects high conviction in its chosen bets.

Robust selections in key sectors such as autos, financials, FMCG, and IT have also driven consistent performance. Supportive domestic market fundamentals further strengthened returns during this period. Backed by this disciplined approach, the fund’s AUM has now crossed Rs 20,000 crore, positioning it among the fastest-growing multicap schemes in the country.