Bajaj Finserv Banking and Financial Services Fund
Direct · GrowthAI Summary
The fund has outperformed the NIFTY 50 across all measured periods, with a 1Y alpha of 9.23% and a 3Y alpha of 3.55%, though its 1Y CAGR of -3.74% remains negative. Upside capture of 109.24% versus downside capture of 96.77% indicates it gains more in rallies than it loses in declines. XIRR and rolling return data are not available, so comparison against the category average SIP XIRR (e.g., 16.27% over 3Y) cannot be made like-for-like.
The fund shows a maximum drawdown of only -0.16% over 41 days with a single drawdown event above 10%, suggesting contained recent volatility. Beta of 1.07 indicates marginally higher volatility than the NIFTY 50, but downside capture of 96.77% means it has fallen slightly less than the benchmark in down markets. The combination of positive alpha and favorable capture ratios points to reasonable risk-adjusted performance.
The portfolio is heavily concentrated in Banks (50.9%) and Finance (23.6%), with ICICI Bank (13.03%) and HDFC Bank (12.82%) as the top two holdings. With only 34 holdings and nearly 74% in just two sectors, diversification is limited by design as a sectoral fund. Exposure to Capital Markets (9.0%), Insurance (8.2%), and Fintech (1.2%) provides some breadth within financial services.
As a sectoral/thematic fund, it cannot be directly compared to diversified equity peers, and the absence of XIRR data limits like-for-like category comparison. Its consistent positive alpha across 1Y through 15Y windows (9.23% down to 1.10%) suggests persistent benchmark outperformance. Calendar year returns of -4.94% in 2026 and 0.91% in 2025 reflect a challenging recent environment for financials.
This fund suits investors with high risk tolerance who want a tactical or satellite allocation to the Indian financial services sector, not a core holding. A horizon of at least 5-7 years is advisable given sector cyclicality and the concentration risk. Investors should be comfortable with periods of underperformance when the banking and financial sector faces headwinds.
- Consistent positive alpha versus NIFTY 50 across all time windows, from 9.23% (1Y) to 1.10% (15Y)
- Favorable capture profile with 109.24% upside capture versus 96.77% downside capture
- Low expense ratio of 0.78% for a sectoral fund in the Direct plan
- Heavy sector concentration with 74.5% in Banks and Finance and top two holdings exceeding 25% of NAV
- Negative recent returns (-4.94% in 2026 YTD and -3.74% 1Y CAGR) and missing XIRR data limit performance evaluation
Generated on 20-10-2026, 3:07 AM. Verify before investing.
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.
Not enough data to compute SIP returns.
Not enough data to compute rolling returns.
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +8.80 | 1.07 | 108.5% | 96.8% | -4.6% | -12.1% |
| 3 Years | +3.40 | 1.07 | 108.5% | 96.8% | -1.6% | -4.2% |
| 5 Years | +2.24 | 1.07 | 108.5% | 96.8% | -0.9% | -2.5% |
| 7 Years | +1.73 | 1.07 | 108.5% | 96.8% | -0.7% | -1.8% |
| 10 Years | +1.35 | 1.07 | 108.5% | 96.8% | -0.5% | -1.3% |
| 12 Years | +1.21 | 1.07 | 108.5% | 96.8% | -0.4% | -1.1% |
| 15 Years | +1.05 | 1.07 | 108.5% | 96.8% | -0.3% | -0.8% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Limited | 13.03% |
| 2 | HDFC Bank Limited | 12.82% |
| 3 | State Bank of India | 8.01% |
| 4 | Bajaj Finance Limited | 5.22% |
| 5 | Kotak Mahindra Bank Limited | 4.76% |
| 6 | Axis Bank Limited | 4.69% |
| 7 | Shriram Finance Limited | 3.60% |
| 8 | The Federal Bank Limited | 3.11% |
| 9 | SBI Funds Management Limited | 3.06% |
| 10 | RBL Bank Limited | 2.66% |