Bajaj Finserv Consumption Fund

The fund has delivered a 1-year XIRR of -4.77%, significantly underperforming the category average SIP XIRR of 14.1% for the same period. Over longer horizons, the fund's CAGR has been negative, while the NIFTY 50 benchmark also posted negative returns, though the fund underperformed the benchmark across all periods from 3 to 15 years. The 1-year fund CAGR of 0.15% slightly outperformed the benchmark's -2.9%, but this is not reflected in the XIRR metric.

The fund has experienced a maximum drawdown of -21.4% with a duration of 445 days and has not yet recovered from this drawdown, indicating prolonged stress. The average drawdown is -8.05%, and there has been one drawdown event exceeding 10%, highlighting significant downside risk. The Calmar ratio for 1 year is -0.1472, reflecting poor risk-adjusted returns given the negative return relative to the drawdown.

The fund's top 10 holdings account for approximately 39% of NAV, with the largest holding being Eternal Limited at 7.2%, followed by Bharti Airtel and Bajaj Auto. Sector concentration is high, with Consumer Durables at 26.6% and Automobiles at 15.2%, making the fund heavily reliant on discretionary consumption sectors. With 50 total holdings, there is some diversification, but the thematic focus limits broad market exposure.

The fund significantly lags its category peers, as its 1-year XIRR of -4.77% is far below the category average of 14.1%. The fund has delivered negative calendar year returns in 2024 and 2025, with only a marginal positive return in 2026, indicating inconsistent performance. Compared to the benchmark, the fund has underperformed on a CAGR basis across all longer time frames, with negative alpha from 3 years onward.

This fund is suitable only for investors with a high risk tolerance and a long-term horizon, given the deep drawdowns and negative returns. It is not appropriate for conservative investors or those seeking income or capital preservation. Investors should be prepared for significant volatility and potential prolonged underperformance, especially in a consumption-themed portfolio.

• The fund has a lower downside capture ratio (85.67%) compared to upside capture (90.75%) over 1 year, indicating it loses less in down markets relative to the benchmark.
• The fund's 1-year alpha of 2.40% versus the NIFTY 50 shows it outperformed the benchmark on a risk-adjusted basis in the most recent period.
• The fund offers exposure to a diversified set of consumption-related sectors, including consumer durables, automobiles, and retail, which can benefit from domestic consumption trends.

• The fund's 1-year XIRR of -4.77% is drastically below the category average of 14.1%, indicating severe underperformance relative to peers.
• The fund has not recovered from its maximum drawdown of -21.4% after 445 days, and its average drawdown of -8.05% suggests persistent downside risk.
• Negative alpha over 3 to 15 years versus the benchmark indicates the fund has consistently failed to add value over longer periods.