Aditya Birla Sun Life PSU Equity Fund
Direct · GrowthAI Summary
Aditya Birla Sun Life PSU Equity Fund has delivered strong returns across horizons, with SIP XIRR of 23.53% (1Y), 31.27% (3Y), and 26.73% (5Y), well ahead of the category averages of 10.56%, 16.17%, and 17.43% respectively. It has also consistently outperformed the NIFTY 50 on a lump-sum basis, with a 5Y Fund CAGR of 21.31% versus the benchmark's 5.35% and alpha of 16.01% over 5Y. Performance, however, has softened recently, with calendar year returns of 11.21% in 2025 and -1.41% in 2026 after a standout 59.75% in 2023.
The fund shows favorable downside behavior versus the NIFTY 50, with 1Y downside capture of 84.48% and 5Y downside capture of 93.53%, meaning it has tended to fall less than the index. Risk-adjusted returns are healthy, with Calmar ratios near 0.87-0.99 across 1Y, 3Y, and 5Y windows, though the 5Y Calmar of 0.8714 is the weakest of the three. However, its maximum drawdown duration of 69 days followed by a lengthy 265-day recovery indicates drawdowns can take considerable time to heal.
The portfolio is concentrated in public sector enterprises, led by State Bank of India at 17.45% of NAV, followed by NTPC (7.82%) and Power Grid (6.72%). Sector allocation is heavily tilted toward Banks at 32.2%, with Power (14.5%), Gas (7.4%), Aerospace & Defense (7.3%), and Petroleum Products (7.3%) rounding out the top five. With only 32 holdings, the fund offers limited diversification, and its fortunes are closely tied to PSU banks, energy, and capital goods cycles.
This fund sits in the top tier of the Sectoral/Thematic category, beating the category average SIP XIRR by roughly 10-15 percentage points across the 1Y, 3Y, and 5Y horizons. Long-term consistency is also strong, with positive alpha over every measured window from 1Y to 15Y, including a 7Y Fund CAGR of 20.76% versus the benchmark's 9.33%. Its rolling 3Y mean return of 33.51% further supports the case that outperformance has been persistent rather than a single-period anomaly.
This fund is best suited for seasoned investors who already hold diversified equity funds and want a tactical or satellite exposure to the PSU theme, which is prone to sharp sector rotations. A time horizon of at least 5-7 years is advisable to ride out the theme's volatile cycles, as seen in returns ranging from -1.41% (2026) to 59.75% (2023). Investors should have a high risk tolerance and should cap their allocation to this thematic fund within their overall portfolio.
- SIP XIRR of 31.27% (3Y) and 26.73% (5Y) far exceeds category averages of 16.17% and 17.43% respectively
- Consistent positive alpha versus NIFTY 50 across all measured periods, with 16.01% alpha over 5Y
- Below-benchmark downside capture (84.48% over 1Y, 89.96% over 7Y) shows relative resilience in falling markets
- Heavy sector concentration with 32.2% in Banks and over 22% in Power plus Gas creates significant theme-cycle risk
- Concentration in single holdings, with SBI alone at 17.45% of NAV, and a long 265-day recovery from maximum drawdown
Generated on 01-11-2026, 3:00 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹13.37 L | 34.3% | -36.1% | 150.9% |
| 3 Years | ₹36.00 L | ₹53.03 L | 31.1% | 2.0% | 61.2% |
| 5 Years | ₹60.00 L | ₹1.15 Cr | 26.9% | 16.6% | 38.6% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 34.3% | 14.3% | 10.5% | +20.0% |
| 3 Years | 31.1% | 11.0% | 16.2% | +20.0% |
| 5 Years | 26.9% | 10.4% | 17.4% | +16.6% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 32.8% | 25.7% | -15.1% | 111.5% | 0.87 | 5.46 | 88% | — | — |
| 3 Years | 33.3% | 32.6% | 16.9% | 49.3% | 3.72 | — | 100% | — | — |
| 5 Years | 29.4% | 29.5% | 19.9% | 38.3% | 5.15 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +8.58 | 0.90 | 98.0% | 84.5% | -0.6% | -10.9% |
| 3 Years | +12.08 | 1.17 | 118.5% | 104.4% | 18.5% | 6.4% |
| 5 Years | +15.61 | 1.04 | 111.9% | 93.7% | 20.7% | 5.2% |
| 7 Years | +11.55 | 0.89 | 101.9% | 90.0% | 20.6% | 9.4% |
| 10 Years | +7.53 | 0.89 | 101.9% | 90.0% | 14.0% | 6.5% |
| 12 Years | +6.06 | 0.89 | 101.9% | 90.0% | 11.6% | 5.4% |
| 15 Years | +4.62 | 0.89 | 101.9% | 90.0% | 9.2% | 4.3% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | State Bank of India | 16.99% |
| 2 | NTPC Ltd. | 7.37% |
| 3 | Bharat Heavy Electricals Ltd. | 6.69% |
| 4 | Power Grid Corporation of India Ltd. | 6.37% |
| 5 | Bharat Electronics Ltd. | 4.80% |
| 6 | Union Bank of India | 4.66% |
| 7 | Bank of Maharashtra | 4.48% |
| 8 | GAIL (India) Ltd. | 3.87% |
| 9 | PNB Housing Finance Ltd. | 3.80% |
| 10 | Life Insurance Corporation of India | 3.49% |