News Kotak Multi Asset Allocation Fund Delivers 28% Returns Since March 2025, Silver Outperforms EquitiesKotak Multi Asset Allocation Fund Delivers 28% Returns Since March 2025, Silver Outperforms Equities
Kotak Multi Asset Allocation Fund achieved nearly 28% returns since March 2025, with silver being the standout performer contributing 14.1 percentage points despite only 14.3% average allocation. The fund generated 12 percentage points of alpha over its benchmark during March-December 2025 and has delivered roughly 23% CAGR since inception in September 2023. Silver's outperformance was attributed to its dual nature as both monetary metal and industrial commodity, supported by supply constraints and diverse demand drivers.
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Kotak Multi Asset Allocation Fund has delivered exceptional performance with nearly 28% returns since March 2025, according to data shared by the fund house. The scheme's success has been primarily driven by strategic silver allocation, which significantly outperformed other asset classes during this period.
Outstanding Performance Metrics
The fund's performance has been particularly impressive when measured against its benchmark. During the March-December 2025 period, the scheme generated approximately 12 percentage points of alpha over its benchmark. Since its inception in September 2023, the fund has maintained strong momentum with roughly 23% CAGR and created around 5.7% alpha.
Asset Class Contribution Analysis
The fund's returns during March-December 2025 reveal an interesting performance dynamic across different asset classes:
| Asset Class: | Average Weight | Contribution (Percentage Points) |
|---|---|---|
| Equity and Futures: | 68.00% | 11.40 |
| Silver: | 14.30% | 14.10 |
| Gold: | 5.50% | 2.40 |
| Fixed Income: | 12.20% | 0.60 |
Notably, silver's contribution of 14.1 percentage points exceeded that of equities despite having a significantly smaller average allocation of 14.3% compared to equities' 68% weight.
Strategic Silver Allocation
The fund house attributed the increased silver allocation to market conditions during early 2025, characterized by uneven equity recovery and heightened market volatility. During this period, diversification across asset classes became more significant for performance enhancement.
Kotak's investment rationale for silver centers on its unique positioning as an asset that functions both as a monetary metal and an industrial commodity. The demand for silver is driven not only by investment flows but also by industrial applications including:
- Solar energy sector requirements
- Electronics manufacturing
- Various industrial applications
Supply-Side Dynamics
The fund house highlighted several supply-side factors that support silver's investment case. A significant portion of global silver output comes as a by-product of other metals, which can limit the speed at which supply responds to higher prices. Additionally, inventory movements across global hubs and industrial demand trends can influence price volatility.
Fund Strategy and Holdings
Kotak Multi Asset Allocation Fund maintains a diversified investment approach across multiple asset classes. The fund invests in equities, debt and money market instruments, commodity ETFs, and exchange-traded commodity derivatives, allowing for flexible allocation based on market conditions and opportunities across different asset classes.
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