Kotak Infrastructure and Economic Reform Fund Direct Plan Insights

The Kotak Infrastructure and Economic Reform Fund Direct Growth Plan, as the name suggests, focuses on investing in two important sectors of India- infrastructure and economic industries. From roads to energy, these sectors play a huge role in our nation’s development.

Do you also believe in India’s long-term growth potential?

By investing in this fund, you can be a part of India’s transformation and growth story.

Let us explore the Kotak Infrastructure and Economic Reform Fund NAV and the latest performance insights of Kotak Infrastructure and Economic Reform Fund, including return, portfolio, and more!

Fund Management and Objectives for Kotak Infrastructure and Economic Reform Fund Direct Growth Plan

The Kotak Infrastructure and Economic Reform Fund portfolio is designed to invest mainly in the infrastructure sector. Now, this includes industries such as construction, energy, and materials. 

Since its launch in January 2013, the Kotak Infrastructure and Economic Reform Fund direct growth plan has delivered consistent returns. The fund is said to be a suitable choice for investors with a long-term horizon and conviction in India’s infrastructure growth.

The Kotak Infrastructure and Economic Reform Fund’s direct growth plan focuses on infrastructure-related investments. At least 80% of its assets are invested in companies involved in infrastructure development. 

This fund aims to capitalise on the growth of India’s infrastructure and economic reforms, which could drive long-term wealth creation.

The fund is managed by Nalin Rasik Bhatt, who has been with Kotak Mutual Fund since October 2023. 

Kotak Infrastructure and Economic Reform Fund Direct Growth Fund Details:

• Launch Date: January 1, 2013
• Fund House: Kotak Mahindra Mutual Fund
• Risk Level: Very High
• Benchmark: NIFTY Infrastructure TRI
• Assets Under Management (AUM): ₹2,430 Cr (as of 31-Dec-2024)
• Expense Ratio: 0.63%
• Turnover: 23.09%
• Minimum Investment: ₹100 for SIP and lump sum
• Exit Load: 0.5% for redemption within 90 days

Performance and Returns

The Kotak Infrastructure and Economic Reform Fund – Standard Plan – Direct Plan has delivered a 16.65% return over the last year and 18.85% since its inception (12 years). Over the past 3 years, it achieved a return of 25.92%, while the 5-year return stands at 25.93%. The fund has consistently performed well, with a 16.92% return over 7 years and 16.42% over the past decade.

The Kotak Infrastructure and Economic Reform Fund NAV stands at ₹70.6310 (as of Feb 3, 2025), though it recently saw a -3.37% decline. 

With an expense ratio of 0.63% and an AUM of ₹2,430 Cr, it remains a solid choice for long-term investors who believe in India’s growth story. 

However, its very high-risk rating makes it more suitable for investors with a high-risk appetite.

Investment Allocation

Now, let’s take a look at the Kotak Infrastructure and Economic Reform Fund portfolio!

The asset allocation of the Kotak Infrastructure and Economic Reform Fund primarily focuses on equity, with 97.75% of its investments in stocks and 2.25% in cash and cash equivalents. 

The fund is diversified across different market caps.

• 21.63% in giant companies
• 18.60% in large-cap stocks
• 34.96% in mid-cap stocks
• 24.82% in small-cap stocks. 

The Kotak Infrastructure and Economic Reform Fund Direct Growth market capitalisation is ₹40,922 Cr.

Kotak Infrastructure and Economic Reform Fund Direct-Growth Portfolio	Details
Top 10 Stock Holdings	34.36% of the portfolio
Price-to-Earnings (P/E) Ratio	31.38 (higher valuation)
Price-to-Book (P/B) Ratio	4.55
Major Sector Allocation	Industrials (48.09%), Materials (16.43%), Technology (11.39%)
Key Stock Holdings	Bharti Airtel, Shree Cement, Zen Technologies
Investment Focus	Heavy emphasis on infrastructure, including materials, industrials, and energy

Kotak Infrastructure and Economic Reform Fund Direct-Growth Top Holdings

The top holdings of the fund include companies like Bharti Airtel, Shree Cement, and Zen Technologies, which represent the key sectors within infrastructure. The portfolio is concentrated in the top 5 stocks, which comprise 19.17% of the total assets.

Sector Allocation: The fund’s sector exposure is as follows:

• Industrials: 48.09%
• Materials: 16.43%
• Technology: 11.39%
• Consumer Discretionary: 9.72%
• Energy & Utilities: 7.75%

Key Metrics – Kotak Infrastructure and Economic Reform Fund Direct-Growth Return Analysis

Kotak Infrastructure and Economic Reform Fund Direct Plan is a high-risk fund. The current Kotak Infrastructure and Economic Reform Fund Direct-Growth NAV stands at ₹73.0950, with a 2.17% growth recently. 

Here is the latest data related to the Kotak Infrastructure and Economic Reform Fund Direct-Growth Fund’s Return:

• 1-Year Return: 16.65%
• 3-Year Return: 25.92%
• Since Inception: 18.85%

Risk and Volatility

Kotak Infrastructure and Economic Reform Fund Direct Growth is classified as having Very High Risk.

Mean Return (%): 27.31% – This is the average return the fund has given over time. 

Kotak Infrastructure and Economic Reform Fund Direct Growth has returned an average of 27.31% annually over the time period considered.

Standard Deviation (Std Dev %) (%): 13.44% – This shows how much the return varies from the average.

Kotak Infrastructure and Economic Reform Fund Direct Growth return fluctuates by 13.44% up or down from its average return.

Sharpe Ratio: 1.59 – This ratio measures how well the fund is performing in relation to the risk it takes. 

 For every unit of risk, the fund is delivering 1.59 units of return. The higher the number, the better the performance for the risk taken.

Sortino Ratio: 2.45 – This ratio focuses on the downside (bad times) rather than the upside (good times). 

The fund has delivered a return of 2.45 units for every unit of downside risk, which shows it is performing well during tough market conditions.

Beta (%): 0.41 – This tells you how much the fund’s price moves compared to the overall market. 

As per the latest data on Feb 3rd, 2025, Kotak Infrastructure and Economic Reform Fund Direct Growth fund is 41% as volatile as the market.

Alpha (%): 10.52% – This shows how much the fund has outperformed or underperformed the market based on its risk. 

Kotak Infrastructure and Economic Reform Fund Direct Growth plan has earned 10.52% more than expected, given its risk, which indicates it’s outperforming its benchmark.

All of these risk measures are based on the returns over the past three years, up to 31 December 2024.

Taxation of Kotak Infrastructure and Economic Reform Fund Direct Growth

When it comes to capital gains, here’s how Kotak Infrastructure and Economic Reform Fund Direct Growth plan is taxed:

• If you sell after 1 year, any gains up to ₹1.25 lakh in a financial year are tax-free. However, if your gains exceed ₹1.25 lakh, they’re taxed at 12.5%.
• If you sell within 1 year, the entire gain will be taxed at 20%.
• As long as you hold the units, you don’t have to pay any tax!

Now, for dividends on Kotak Infrastructure and Economic Reform Fund Direct-Growth:

• Dividends are added to your income and taxed based on your income tax slab.
• Also, if your total dividend income crosses ₹5,000 in a year, the fund house will deduct 10% TDS before giving you the payout.

Investment Details

For investing in the Kotak Infrastructure and Economic Reform Fund Direct Growth plan, the minimum amount you can invest initially is ₹100. If you want to add more later, the minimum additional investment is also ₹100. 

The minimum amount for a SIP (Systematic Investment Plan) investment is ₹100. To withdraw your money, the minimum amount you can take out is ₹1,000. You’ll need at least ₹1,000 in your account to keep it active. 

If you decide to redeem (or sell) your investment within 90 days, there will be a 0.5% fee. There is no lock-in period, so you can withdraw your money anytime after the 90-day fee period.

Want to calculate your SIP returns for the Kotak Infrastructure and Economic Reform Fund Direct Growth plan? Try the SIP calculator now!

How to Invest in Kotak Infrastructure and Economic Reform Fund Direct Growth Plan

You can invest in Kotak Infrastructure and Economic Reform Fund Direct Growth plan effortlessly with Shoonya. Not only does Shoonya offer commission-free trading on mutual funds, but it also provides technical tools, AI-powered stock analysis, and so much more!

Investing in Lump Sum Mutual Funds Through the Shoonya Web Platform

Here’s a quick guide on how to invest in lump sum mutual funds through the Shoonya web platform:

1. Log in to your Shoonya account at trade.shoonya.com. From the “Orders” section, click on “MF order.”
2. Search for the fund you wish to invest in; in this case,  Kotak Infrastructure and Economic Reform Fund Direct Growth plan.
3. Choose “Fresh” for a new investment and enter the amount you want to invest.
4. You can complete your purchase by clicking the “Purchase” button.
5. A payment link will be sent to your registered email. Use the link to make the payment.

After payment, your mutual fund units of the Kotak Infrastructure and Economic Reform Fund Direct Growth plan will be allotted to your Demat account within T+2 days.

Note: You can only make the payment using the bank account registered with your Demat account.

Setting Up a SIP for the Kotak Infrastructure and Economic Reform Fund Direct Growth Plan

If you prefer a Systematic Investment Plan (SIP) for the Kotak Infrastructure and Economic Reform Fund Direct Growth plan, follow these steps:

1. Log in to your Shoonya account at trade.shoonya.com. Go to “Orders” and click on “XSIP.”
2. Find the mutual fund for which you want to set up an SIP. In this case, select the Kotak Infrastructure and Economic Reform Fund Direct Growth plan.
3. If this is your first SIP with Shoonya, you need to create a Mandate ID. Enter the mandate amount and the validity date (until the date you want to keep your SIP active).
4. You must submit the details, and you’ll receive a Mandate authentication link via email. Approval generally takes 24 hours.

Once your Mandate is approved, you can follow these steps to set up your SIP:

1. Go to “XSIP,” enter the SIP amount, and select “Fresh” as the transaction type.
2. Choose the date when the SIP will be debited directly from your registered bank.
3. The approved Mandate ID will auto-reflect.
4. Choose “Monthly” for monthly debits and specify the number of instalments (e.g., 24 instalments for a 2-year SIP).

This process will help you invest systematically. 

Things to Keep in Mind Before Investing in Kotak Infrastructure and Economic Reform Fund Direct Growth Plan

Before investing in the Kotak Infrastructure and Economic Reform Fund, it is important for you to be aware of certain things:

1. The fund focuses mainly on the infrastructure sector, including industries like construction, energy, and materials. It is essential for investors to have a strong belief in the potential growth of India’s infrastructure.
2. Short-term fluctuations may occur due to the cyclical nature of infrastructure sectors.
3. The fund has a low expense ratio, which means that more of your investment can go towards achieving returns. This is favourable for long-term investors seeking cost-efficient options.
4. The  Kotak Infrastructure and Economic Reform Fund Direct-Growth plan is subject to capital gains tax.

Ready to start investing in the Kotak Infrastructure and Economic Reform Fund Direct Growth plan? 

Open your free demat account today and get started!

Kotak Infrastructure and Economic Reform Fund Direct Growth Plan: FAQs

Source: ValueResearch

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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.