Bank of India Banking and Financial Services Fund
Direct · GrowthAI Summary
The fund has underperformed the NIFTY 50 benchmark across all measured periods, with a 10Y lump-sum CAGR of -1.15% versus the benchmark's -1.09%, and alpha turning negative at -0.13% over 1Y. Its SIP XIRR data is unavailable, so it cannot be compared directly to the category's strong SIP XIRR averages of 10.54% (1Y) to 15.76% (12Y). Calendar year 2026 returns of -10.49% indicate the fund is currently navigating a weak phase for financial sector equities.
The fund shows a beta of 1.0236 against NIFTY 50, moving almost in line with the market, but its downside capture of 100.68% exceeds its upside capture of 97.08%, meaning it falls slightly more than the market in downturns while gaining less in upswings. The maximum drawdown was a modest -0.14% lasting 32 days, though one drawdown event exceeding 10% has occurred historically. The consistently small negative alpha across longer windows (-0.13% to +0.13%) suggests risk-adjusted returns roughly match but do not beat the benchmark.
The portfolio is heavily concentrated in banks at 52.1% of NAV, with the top three holdings being HDFC Bank (11.54%), ICICI Bank (10.41%), and SBI (8.77%). Capital markets (20.8%) and finance (14.5%) round out the exposure, while diversification within the 33-stock portfolio is limited by the sectoral mandate. Concentration risk is significant, as over 51% of the fund sits in just ten holdings, mostly large private and public sector banks.
Direct peer comparison is limited because the fund's XIRR is not available against category SIP XIRR averages of 16.16% (3Y) and 17.42% (5Y). Its persistent marginal underperformance versus NIFTY 50 across 1Y to 15Y windows suggests it has not added measurable value over a passive index despite carrying a high 2.86% expense ratio. Within the sectoral/thematic category, this fund offers focused financial-sector exposure rather than diversified alpha generation.
This fund suits investors who already hold a diversified core portfolio and want a tactical satellite allocation to Indian financial services, with a horizon of 7-10 years to ride out sector cycles. It is appropriate only for investors with high risk tolerance, as sectoral funds can underperform significantly during prolonged sector downturns like the current negative returns. Given the high expense ratio of 2.86% and benchmark-like returns, cost-conscious investors may prefer index-based financial sector exposure instead.
- Highly focused exposure to the financial sector with 52.1% in banks, led by quality names like HDFC Bank, ICICI Bank, and SBI comprising over 30% of NAV
- Beta of 1.0236 near market-neutral, providing predictable benchmark-tracking behaviour with 33 holdings for reasonable single-stock diversification
- Recent maximum drawdown of only -0.14% with a quick 32-day recovery window indicates contained short-term volatility in the current period
- Underperformance versus NIFTY 50 across all periods, with negative one-year CAGR of -10.93% and downside capture (100.68%) exceeding upside capture (97.08%)
- High expense ratio of 2.86% erodes returns, and the sector-concentrated portfolio carries elevated cyclicality risk tied to banking sector health
Generated on 05-11-2026, 3:04 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 | +0.94 | 1.03 | 99.3% | 100.7% | -2.0% | -2.6% |
| 3 Years | +0.45 | 1.03 | 99.3% | 100.7% | -0.7% | -0.9% |
| 5 Years | +0.36 | 1.03 | 99.3% | 100.7% | -0.4% | -0.5% |
| 7 Years | +0.30 | 1.03 | 99.3% | 100.7% | -0.3% | -0.4% |
| 10 Years | +0.28 | 1.03 | 99.3% | 100.7% | -0.2% | -0.3% |
| 12 Years | +0.26 | 1.03 | 99.3% | 100.7% | -0.2% | -0.2% |
| 15 Years | +0.25 | 1.03 | 99.3% | 100.7% | -0.1% | -0.2% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | HDFC Bank Limited | 11.54% |
| 2 | ICICI Bank Limited | 10.41% |
| 3 | State Bank of India | 8.77% |
| 4 | Shriram Finance Limited | 4.83% |
| 5 | One 97 Communications Limited | 4.04% |
| 6 | ICICI Prudential Asset Management Company Limited | 3.60% |
| 7 | Bank of Baroda | 3.56% |
| 8 | Indian Bank | 3.15% |
| 9 | City Union Bank Limited | 3.14% |
| 10 | Kotak Mahindra Bank Limited | 3.08% |