Kotak Nifty Financial Services Ex-Bank Index Fund - Direct Plan - IDCW option

Kotak Nifty Financial Services Ex-Bank Index Fund - Direct Plan - IDCW option ranks among the stronger performers in the Sectoral 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 88/100.

Cost: At 0.2938%, the expense ratio is meaningfully cheaper — about 72% below the Sectoral category average of 1.05% (based on 326 comparable funds). Lower costs compound in your favour over long holding periods.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a negative Sharpe ratio of -0.2 — over the past year, returns haven't kept pace with the volatility involved, even before accounting for the risk-free rate. Separately, with 20.78% annualised volatility, this is among the more turbulent funds in its space — expect sharp swings in both directions.

Who should invest: This fund is best suited to investors whose goals and risk appetite align with a Equity fund. Given the Very High risk rating, this fund is not suited to short-term goals or investors who may need to exit within 2-3 years.