Kotak CRISIL -IBX AAA Financial Services Index Sep-2027 Fund-DIRECT PLAN-IDCW

Kotak CRISIL -IBX AAA Financial Services Index Sep-2027 Fund-DIRECT PLAN-IDCW ranks among the stronger performers in the Target Maturity category, backed by a 5-star rating. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 91/100.

Cost: At 0.1815%, the expense ratio runs 13% above the Target Maturity category average of 0.16%. That gap is worth weighing against the fund's actual performance versus cheaper peers before committing to a long SIP.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a negative Sharpe ratio of -0.18 — over the past year, returns haven't kept pace with the volatility involved, even before accounting for the risk-free rate. Separately, annualised volatility of 0.8% is on the lower side, suggesting a comparatively smoother ride.

Who should invest: This fund is best suited to investors whose goals and risk appetite align with a Debt fund.