Bandhan Financial Services Fund
Direct · GrowthAI Summary
Bandhan Financial Services Fund has delivered a 1Y SIP XIRR of 8.99% and a 3Y SIP XIRR of 9.11%, both well below the category averages of 12.23% and 18.55% respectively. Lump-sum rolling returns look stronger, with the 3Y rolling mean at 15.73%, and calendar year returns were solid from 2023 to 2025 (16.74%, 20.29%, 12.9%). However, 2026 has been weak at -5.81%, and the fund is clearly lagging its sectoral fund peers on SIP returns.
The maximum drawdown is a modest -0.17% with a duration of 83 days, and only 2 drawdown events exceeded 10%, indicating relatively contained downside so far. Calmar ratios of 0.8555 (1Y) and 0.9185 (3Y) suggest reasonable risk-adjusted returns relative to drawdown experienced. Still, as a sectoral fund concentrated in financial services, it carries inherent concentration risk that can amplify losses in sector-specific downturns.
As a sectoral fund, the portfolio is concentrated in the financial services sector, including banks, NBFCs, and insurance companies, which limits diversification by design. This focused approach means performance is closely tied to the fortunes of a single sector rather than the broader market. Investors should expect higher volatility than diversified equity funds due to this single-sector exposure.
The fund trails the sectoral category averages across SIP XIRR horizons, with a 3Y XIRR of 9.11% versus the category's 18.55% — a gap of over 9 percentage points. Calendar year returns show inconsistency, ranging from -5.81% in 2026 to 20.29% in 2024. This underperformance suggests the fund has struggled to keep pace with better-performing sectoral peers in recent periods.
This fund is suitable only for experienced investors who understand sector concentration risk and want tactical exposure to financial services. A time horizon of at least 5 years is advisable to ride out sector cycles, and it should be a satellite holding rather than a core portfolio allocation. Investors with low risk tolerance or those seeking diversified exposure should avoid sectoral funds like this one.
- Low maximum drawdown of -0.17% with only 2 drawdown events exceeding 10%, indicating contained downside risk historically
- Strong calendar year returns from 2023 to 2025, including 20.29% in 2024 and 12.9% in 2025
- Competitive expense ratio of 0.63% for a sectoral fund in the Direct plan
- Significant SIP XIRR underperformance versus category: 9.11% vs 18.55% over 3Y and 8.99% vs 12.23% over 1Y
- Negative 2026 return of -5.81% and single-sector concentration expose investors to financial services cycle risk
Generated on 13-10-2026, 3:12 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 | ₹12.73 L | 13.7% | -24.3% | 52.9% |
| 3 Years | ₹36.00 L | ₹41.55 L | 9.2% | 4.4% | 12.8% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | Category avg |
|---|---|---|
| 1 Year | 13.7% | 12.2% |
| 3 Years | 9.2% | 18.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 14.6% | 12.8% | -5.9% | 47.8% | 0.67 | 2.89 | 93% | — | — |
| 3 Years | 15.6% | 15.8% | 13.2% | 17.9% | 5.98 | — | 100% | — | — |