Kotak Liquid Fund

Review Date: 25-03-2025

Beginning of Analysis

Kotak Liquid Fund is the 20th ranked fund in the Liquid Fund category. The category has total 33 funds. The Kotak Liquid Fund has shown an average past performence in Liquid Fund category. The fund has a Jensen Alpha of 4.77% which is lower than the category average of 4.92%, showing poor performance. The fund has a Sharpe Ratio of -0.66 which is lower than the category average of -0.79.
The past performance of the Kotak Liquid 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.
Liquid Mutual Funds are a category of debt mutual funds that invest in short-term money market instruments with a maturity of up to 91 days. These funds are designed to provide high liquidity and stability, making them ideal for parking surplus funds for a very short duration. Liquid Funds typically invest in instruments such as Treasury Bills (T-Bills), Commercial Papers (CPs), Certificates of Deposit (CDs), and short-term government securities.. Liquid Mutual Funds are ideal for investors seeking a safe, liquid, and low-risk investment option for short-term cash management. These funds invest in high-quality, short-term money market instruments with a maturity of up to 91 days, offering quick redemption (within 1 business day) and stable returns. While they provide better returns than savings accounts, they may underperform compared to other debt funds with longer maturities. Investors should consider their liquidity needs, risk tolerance, and investment horizon before investing in Liquid Funds. Additionally, the absence of a lock-in period makes them a flexible choice for managing short-term financial goals.

Kotak Liquid Fund Return Analysis

The fund has given a return of 0.54%, 1.76 and 3.53 in last one, three and six months respectively. In the same period the category average return was 0.53%, 1.75% and 3.52% respectively. The fund has given a return of 7.41% in last one year, 6.74% in last three years, 5.54% in last five years and 6.32% in last ten years. In the same period the category average return was 7.38%, 4.25%, 3.56% and 7.2% respectively. The fund has Average performance in last ten years in Liquid Fund.

The fund has given a SIP return of 7.27% in last one year. In the same period the category average SIP return was 7.24%. The fund has SIP return of 7.17% in last three years whereas category average SIP return is 6.55%. The category average SIP return is 6.28% and the fund has given a SIP return of 6.31% in last five years.

Kotak Liquid Fund Risk Analysis

The fund has a standard deviation of 0.34 and semi deviation of 0.28. The category average standard deviation is 0.33 and semi deviation is 0.27. The fund has a beta of 0.18 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.