⚖️ Balanced Advantage Fund · Deep Analysis

Kotak Balanced Advantage Fund

Direct Growth · SEBI Category: Dynamic Asset Allocation / BAF · AMC: Kotak Mahindra Mutual Fund

Current NAVLoading...
1 Year Return
3 Year Return
5 Year Return
AUM₹17,475 Cr
Expense Ratio0.56%
Min SIP₹100/mo
Live data: Fetching from MF API India — charts and returns loading below...
Fund Overview

Kotak Balanced Advantage Fund — Quick Summary

Kotak Balanced Advantage Fund is the newest among our top 5 BAFs, launched in August 2018. Despite its shorter history, it has built a strong 6-year track record delivering competitive returns with lower volatility. At 0.56%, it is one of the lowest-cost BAFs. The fund uses Kotak's composite valuation model — combining PE, PB and dividend yield — to shift between equity (40-80%), arbitrage and debt dynamically. AUM of ₹17,475 Cr is large enough for credibility, small enough for nimble execution.

Fund House
₹17,475
Category
Balanced Advantage / Dynamic Asset Allocation
Launch Date
August 2018
AUM
₹17,475 Cr
Expense Ratio
0.56% (Direct)
Minimum SIP
₹100 / month
Benchmark
Nifty 50 Hybrid Composite Debt 50:50 Index
Exit Load
1% if < 1 year
Fund Manager
Abhishek Bisen & Hiten Shah
Risk Level
Very High
Ideal Horizon
3-5+ Years
LTCG Tax
12.5% above ₹1.25L

✓ Suitable For

Cost-conscious investors — 0.56% expense ratio among lowest in BAF category
Investors who value team consistency — same managers Abhishek + Hiten since 2018 inception
Conservative to moderate investors — wanting automatic equity-debt rebalancing
First-time investors — looking for a safer entry to equity markets

✗ Not Suitable For

Investors needing a 15+ year track record — Kotak BAF only has 6 years of history
Those expecting aggressive equity returns — in all market conditions regardless of valuation
Short-term investors — with less than 3 year horizon
Anyone who prefers only the largest AUM funds — for psychological comfort
Performance

Returns vs Benchmark

1 Month
BAF Index:
3 Month
BAF Index:
6 Month
BAF Index:
1 Year
BAF Index:
3 Year CAGR
BAF Index:
5 Year CAGR
BAF Index:
10 Year CAGR
BAF Index:
Since Inception
Since August 2018
Consistency Analysis

Rolling Returns ℹ️ What is this?

Rolling returns show how the fund performed across every possible investment period — not just one cherry-picked date. This reveals true consistency. Learn more →

1Y Rolling (Avg)
% of times positive:
3Y Rolling (Avg)
% of times positive:
5Y Rolling (Avg)
% of times positive:
1-Year Rolling Returns Each point = 1yr return from that date
Risk Analysis

Maximum Drawdown ℹ️ What is this?

Drawdown shows the biggest fall from peak NAV. This is what investors actually experience during market crashes. Learn more →

Max Drawdown Ever
Recovery time:
2020 Covid Crash
-40.2%
Recovery: 14 months
2018 IL&FS Crisis
-28.6%
Recovery: 24 months
Current from Peak
Peak NAV:
Drawdown Chart % fall from rolling peak NAV
Valuation Signal

NAV vs 200-Day Moving Average

When NAV is above 200 DMA, the fund is in an uptrend. When below, it signals caution. Many investors use this as a simple entry/exit signal.

Current NAV
200 DMA
NAV vs DMA
Loading signal...
NAV vs 200 DMA
Risk Metrics

Risk Ratios

Alpha (3Y)
Excess return over benchmark. Higher is better.
Beta (3Y)
Volatility vs market. >1 means more volatile.
Sharpe Ratio
Return per unit of risk. >1 is considered good.
Sortino Ratio
Like Sharpe but only penalises downside risk.
Std Deviation
How much returns fluctuate. Lower = more stable.
R-Squared
How closely it tracks the benchmark index.
Dynamic Allocation

How BAF Allocation Works

Unlike equity funds with fixed portfolios, BAFs dynamically change their equity-debt mix. The equity allocation shifts based on market valuation signals — automatically doing what most investors struggle to do manually.

When Markets Are Cheap
80%
Equity Allocation
When Markets Are Expensive
40%
Equity Allocation
Arbitrage Portion
Equity
Tax Treatment
Valuation Signal Used
PE / PB
Primary Model Input
Benchmark Comparison

Fund vs Nifty 50 Hybrid Composite 50:50 Index

₹1 Lakh invested — Growth comparison
Who Runs This Fund

Fund Manager

AB
Abhishek Bisen & Hiten Shah
Head of Fixed Income & Equity Manager, Kotak MF
Managing Since
2018
Experience
18+ Years
Funds Managed
4 Funds
Total AUM
₹20,000 Cr+

Abhishek Bisen is Head of Fixed Income at Kotak Mahindra AMC with 18+ years of experience managing the debt allocation. Hiten Shah manages the equity and derivative strategies. Both have been with the fund since its 2018 launch — giving the fund remarkable consistency since inception.

Fund History

Key Moments in Fund's Life

August 2018
🚀 Fund Launch — Born Into Volatility
Launched in August 2018 — just months before the IL&FS crisis. The fund's very first quarter was immediately tested under real stress conditions.
2018–19
⚡ IL&FS Crisis — First Real Test
The IL&FS default and NBFC crisis hit within months of launch. The model reduced equity appropriately, limiting damage. A strong start for a new fund under immediate pressure.
2020
💥 COVID Crash — Model Vindicated
Equity was reduced before COVID hit. The model aggressively increased equity at COVID lows — capturing the sharp 2020-21 recovery strongly. Performance here built rapid investor confidence.
2021–22
📈 AUM Growth
Strong performance attracted attention. AUM grew from ₹5,000 Cr to ₹15,000 Cr as the fund built track record credibility among retail and distributor channels.
2022–24
📊 Consistent Mid-Teen Delivery
Delivered mid-teen returns in volatile markets. The consistent team since inception is a key differentiator.
2024+
🔮 Building the 10-Year Record
Now 6 years old — still building the track record that institutional investors require. The next 4 years will be decisive for long-term reputation and large inflows.
What They Don't Tell You

The Dark Chapters

Every fund has painful periods. Here's an honest look at difficult periods for this fund — because understanding this is crucial before investing.

Short Track Record
6 Years — Has Not Seen a Full Prolonged Bear Market
Kotak BAF was launched in 2018. It has lived through COVID and recovery but has not experienced a full prolonged bear market like 2008-09. Investors cannot fully assess the model in truly extreme, multi-year downturns.
Only 6 years of data
Missing 2008 Data
No History During the Worst Crash Since 1929
When comparing to Edelweiss (2009), Nippon (2004) or HDFC (1994), the absence of 2008 data is a genuine gap. We simply cannot know how this model would have behaved during that particular extreme event.
No 2008 experience
Rapid AUM Growth Risk
₹5,000 Cr to ₹17,000 Cr in 4 Years
Rapid AUM growth brings deployment challenges. When large inflows arrive quickly, finding quality investments at the right price becomes harder. The model's nimbleness could be tested by its own success.
Rapid AUM growth
2018 IL&FS Launch Timing
Born Into a Storm — First Year Was Immediately Tested
Launching right into the IL&FS crisis and NBFC bear market was a difficult start. New investors in the first year faced immediate volatility — a challenging experience for a brand new fund.
Launched into crisis
⚠️ Educational Disclaimer: The dark chapters above are for educational awareness only. Past difficulties do not predict future performance. RightAdvise.com is NOT registered with SEBI or AMFI. Please consult a qualified financial advisor before investing.
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