6 days ago
Kotak MF Flags Passive Investment Opportunities After Market Correction
Kotak Mutual Fund studied where investors might put money after Indian stocks fell from their recent high.
It said passive investments can provide exposure to groups of stocks or to commodities such as gold.
The fund suggested looking at the Nifty 50 and Nifty Next 50 for large-company exposure.
It said smaller-company stocks appeared more expensive compared with their usual valuations.
Investors who want less ups and downs in stocks could consider the Nifty 100 Low Volatility 30 Index.
Gold was suggested because it can help diversify a portfolio when markets are uncertain.
The report also pointed to banks and consumer-focused companies as areas to watch.
It stressed that each person’s investment mix should depend on their risk tolerance, time horizon and financial goals.
Kotak Mutual Fund’s August 2026 D-Kode report called the market correction an opportunity to add selected passive investments.
For market-cap exposure, it suggested the Nifty 50 and Nifty Next 50, while noting that small- and mid-cap indices trade at premiums.
The report highlighted the Nifty 100 Low Volatility 30 Index for investors seeking lower equity-market volatility.
Gold was identified as a diversification and uncertainty hedge after returning 63% in 2025 but declining 7% from January to July 2026.
The Nifty Bank Index and Nifty Consumption Index were highlighted as sector and theme opportunities, with allocation dependent on each investor’s circumstances.
- Who
- Kotak Mutual Fund and Satish Dondapati, Fund Manager ETF at Kotak Asset Management Company, made the recommendations.
- What
- The August 2026 D-Kode report identified passive funds, gold, banking and consumption investments to consider after a market correction.
- Where
- The report focused on Indian equities, indices and sectors, while comparing India’s performance with markets including the United States, Japan, Korea and Taiwan.
- When
- The recommendations were published in Kotak Mutual Fund’s August 2026 report; the cited performance periods include January–December 2025 and January–July 2026.
- Why
- Kotak Mutual Fund said the correction could offer opportunities to accumulate selected investments at relatively more attractive valuations and diversify portfolios.
Key facts
- Report
- Kotak Mutual Fund’s August 2026 D-Kode report
- Nifty 50 valuation
- Average P/E: 18.7 times; current P/E: 18.6 times
- Mid-cap valuation
- Nifty Midcap 100 average P/E: 24 times; current P/E: 27.8 times
- Small-cap valuation
- Average P/E: 17.5 times; current P/E: 23.3 times
- Gold performance
- Returned 63% from January to December 2025 and declined 7% from January to July 2026
- Bank index performance
- Nifty Bank Index fell 6.2% between 24 February and 31 July 2026
- Allocation guidance
- There is no single ideal allocation; it depends on risk appetite, investment horizon and financial goals
Quotes
Satish Dondapati
Fund Manager ETF at Kotak Asset Management Company
“Gold provides diversification and can act as a hedge during periods of market uncertainty, geopolitical risks, and currency movements. A correction can also be a good time to rebalance gold allocation”
livemint.com
“The allocation can be different for each investor depending on their risk appetite, investment horizon and financial goals. Hence, there is no single ideal allocation that works for everyone”
livemint.com
Sources
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