This mutual fund has given over 16% CAGR in 3 years

Kotak Quant Fund has completed three years since its launch, with the fund delivering a compounded annual growth rate (CAGR) of more than 16% since inception, according to Kotak Mutual Fund.

The fund, which uses a quantitative stock-selection approach, has grown investors’ money 1.56 times over the three-year period. Its Tier-1 benchmark, the Nifty 200 TRI, delivered a return of 11.6% over the same period, giving the fund an outperformance of more than 3.6 percentage points, according to the fund house.

The fund has also delivered a return of more than 0.7% over the past year, compared with a negative 2.19% return for the benchmark.

What a ₹10,000 monthly SIP would have become

A monthly SIP of ₹10,000 in the fund would have involved an investment of ₹3.7 lakh over three years and grown to around ₹4.16 lakh, according to the fund house. This translates into a CAGR of nearly 7.98%.

The difference between the SIP return and the fund’s three-year CAGR reflects the fact that SIP investments are made at different points in time, rather than as a lump sum at the beginning.

How does Kotak Quant Fund invest?

The fund selects stocks using an in-house quantitative model. The model is tested on six parameters — 60 Days, Sharpe, Churn, Quality, Active Share and Rebalance to Rebalance Tests.

The portfolio construction process combines fundamental and market-related factors. These include return on equity (ROE), return on assets (ROA) and net profit margin (NPM), along with factors such as liquidity, stock-price momentum and volatility.

The fund had assets under management of ₹497 crore as of June 30, 2026.

Abhishek Bisen and Harsha Upadhyaya have been managing the fund since August 2, 2023, while Rohit Tandon has been managing it since January 22, 2024.

What investors should keep in mind

While the fund has outperformed its benchmark since inception, investors should not view the three-year performance as a guarantee of future returns. The fund has a relatively short track record, and its quantitative strategy could perform differently across market conditions.

As an equity-oriented scheme, returns can also be volatile and investors can face the risk of capital loss. The fund’s past performance, including its outperformance over the Nifty 200 TRI, therefore needs to be assessed alongside an investor’s risk appetite and investment horizon.