Kotak Infrastructure & Economic Reform Fund

Review Date: 25-03-2025

Beginning of Analysis

Kotak Infrastructure & Economic Reform Fund is the 13th ranked fund in the Infrastructure Fund category. The category has total 17 funds. The 2 star rating shows a poor past performance of the Kotak Infrastructure & Economic Reform Fund in Infrastructure Fund category. The fund has a Jensen Alpha of 3.89% which is higher than the category average of 3.74%. Here the fund has shown good performance in terms of risk adjusted returns. The fund has a Sharpe Ratio of 0.7 which is lower than the category average of 0.76.
The past performance of the Kotak Infrastructure & Economic Reform Fund may or may not be sustained in the future. The review is not investment advice nor is it a recommendation to buy or sell funds.
Infrastructure Mutual Funds are ideal for long-term investors seeking to capitalize on the growth potential of the infrastructure sector. These funds invest in companies across various sub-sectors like construction, utilities, transportation, and energy, offering exposure to a diverse range of infrastructure-related businesses. While they provide the potential for long-term growth and alignment with economic development goals, they also carry higher risks due to their concentrated exposure to the infrastructure sector. Investors should have a long-term investment horizon and a moderate to high risk tolerance to invest in these funds. Additionally, monitoring government policies and economic trends is crucial for success.

Kotak Infrastructure & Economic Reform Fund Return Analysis

The fund has given a return of 6.47%, -14.03 and -19.16 in last one, three and six months respectively. In the same period the category average return was 6.92%, -9.17% and -15.54% respectively. The fund has given a return of 5.24% in last one year, 24.45% in last three years, 37.34% in last five years and 15.87% in last ten years. In the same period the category average return was 7.87%, 25.18%, 37.92% and 15.22% respectively. The fund has Good performance in last ten years in Infrastructure Fund.

The fund has given a SIP return of -16.84% in last one year. In the same period the category average SIP return was -10.93%. The fund has SIP return of 19.31% in last three years whereas category average SIP return is 23.3%. The category average SIP return is 27.81% and the fund has given a SIP return of 26.69% in last five years.

The benchmark Nifty Infrastructure Total Return Index has given a return of 4.84%, 20.88% and 33.4% in last one, three and five years respectively.

Kotak Infrastructure & Economic Reform Fund Risk Analysis

The fund has a standard deviation of 17.56 and semi deviation of 13.9. The category average standard deviation is 17.34 and semi deviation is 12.87. The fund has a Value at Risk (VaR) of -25.68 and a maximum drawdown of -27.64. The category average VaR is -21.21 and the maximum drawdown is -24.41. The fund has a beta of 0.88 which shows that fund is less volatile than the benchmark.

Standard deviation measures the fund's return volatility and Semi deviation focuses on downside volatility. Value at Risk (VaR) is a measure of the risk of investments. Maximum Drawdown is the maximum loss from a peak to a trough of a portfolio. Beta measures the volatility of the fund compared to the benchmark. A beta of 1 indicates that the fund will move in line with the benchmark. A beta of more than 1 indicates that the fund will be more volatile than the benchmark and vice versa.