A systematic investment plan of ₹10,000 in the Kotak Bond Short Term Fund has completed 24 years since its inception on May 2, 2002. According to fund disclosures, the investment would have grown to approximately ₹74.2 lakh over this period.
The illustration reflects long-term compounding within the short-duration debt fund category. The scheme is managed by Kotak Mahindra Asset Management Company.
The SIP illustration shows that monthly investments of ₹10,000 accumulated to total contributions of about ₹28.7 lakh over the full investment period. The overall value grew to nearly ₹74.2 lakh, reflecting a compound annual growth rate of 7.94% under the direct plan growth option.
This return has been generated across multiple interest rates and economic cycles. The data highlights the impact of disciplined investing over an extended timeframe.
Kotak Bond Short Term Fund is managed by Kotak Mahindra Asset Management Company and has assets under management of around ₹15,220 crore. The fund is jointly managed by Deepak Agrawal and Abhishek Bisen.
Deepak Agrawal has been associated with the fund since 2007, while Abhishek Bisen joined the management team in 2022. Portfolio decisions are guided by the fund’s stated investment objective and duration strategy.
The scheme is benchmarked against the Nifty Short Duration Debt Index A‑II. As of March 31, 2026, the fund generated an alpha of approximately 0.64% over its tier‑1 benchmark.
This indicates relative outperformance compared with the tracked index. Benchmark comparison helps assess performance within the broader short-duration debt fund universe.
The fund follows a short-duration strategy by investing primarily in debt securities with a maturity profile of 1–3 years. It maintains a conservative credit approach, with around 80–90% allocation to sovereign securities and AAA or equivalent‑rated instruments.
This structure aims to limit credit risk and manage interest rate sensitivity. Compared with longer-duration debt funds, such positioning generally shows relatively lower volatility.
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The completion of 24 years since inception marks a long operating history for the Kotak Bond Short Term Fund. The SIP illustration reflects how consistent monthly investments translated into higher corpus growth through compounding.
The fund’s short-duration strategy and conservative credit profile have remained central to its positioning. While performance data highlights historical outcomes, debt mutual fund returns remain market‑linked and subject to various risks.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 8, 2026, 11:45 AM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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