DSP Banking and Financial Services Fund
Direct · GrowthAI Summary
The fund has delivered a 1-year SIP XIRR of 17.38%, outperforming the category average of 14.1% by a healthy margin. Over the same period, its lump-sum CAGR of 16.08% significantly beat the NIFTY 50's -2.9%, with positive alpha across all time frames. Calendar year returns have been positive in each of the last four years, including a strong 22.85% in 2025.
The fund exhibits moderate volatility with a beta of 1.17 over 1 year, indicating higher sensitivity to market movements than the benchmark. Its maximum drawdown is shallow at -0.15% with a quick recovery of 85 days, and the Calmar ratio of 1.24 suggests favorable risk-adjusted returns. However, the occurrence of 2 drawdown events exceeding 10% highlights that the fund can experience significant temporary losses during market stress.
The portfolio is heavily concentrated in financial services, with top 10 holdings accounting for over 56% of assets, led by ICICI Bank (9.57%) and Axis Bank (8.59%). Sector-wise, banks dominate at 45.3%, followed by finance (22.9%) and insurance (12.0%), making the fund highly sensitive to the financial sector's performance. With only 31 total holdings, diversification is limited within the sector, though it does include exposure to capital markets and fintech.
The fund's 1-year XIRR of 17.38% places it well above the category average of 14.1%, indicating strong recent performance relative to peers. However, its longer-term XIRR (not provided) would need to be compared to category averages of 16-17% to assess consistency; the available data shows positive returns in all calendar years, suggesting resilience. The fund's alpha over the benchmark is positive across all periods, but the category comparison for longer durations is not available, so consistency beyond 1 year remains unverified.
This fund is suitable for investors with a high risk tolerance who are specifically bullish on the Indian financial services sector and can withstand sector-specific volatility. A minimum investment horizon of 3-5 years is recommended to ride out cyclical downturns, as the fund's performance is closely tied to banking and finance cycles. It is not appropriate for conservative investors or those seeking broad market diversification, given its concentrated sector exposure.
- Outperformed the category average by 3.28 percentage points on a 1-year SIP XIRR basis (17.38% vs 14.1%).
- Consistently delivered positive alpha over the NIFTY 50 across all time frames, with 1-year alpha of 20.57%.
- Strong upside capture of 121.3% with downside capture of 95.65% over 1 year, indicating participation in market gains while limiting losses.
- High sector concentration with 45.3% in banks and 22.9% in finance, making the fund vulnerable to sector-specific regulatory or economic shocks.
- The fund has experienced 2 drawdown events exceeding 10%, indicating potential for significant temporary losses during market downturns.
Generated on 30-08-2026, 2:50 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 | ₹12.99 L | 17.4% | -13.3% | 34.4% |
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 | 17.4% | 14.4% | 14.1% | +3.0% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 18.2% | 18.4% | 3.1% | 32.1% | 1.91 | 32.29 | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +20.57 | 1.17 | 121.3% | 95.7% | 16.1% | -2.9% |
| 3 Years | +11.23 | 1.06 | 109.5% | 93.7% | 16.1% | 4.9% |
| 5 Years | +6.64 | 1.06 | 109.5% | 93.7% | 9.3% | 2.9% |
| 7 Years | +4.79 | 1.06 | 109.5% | 93.7% | 6.6% | 2.1% |
| 10 Years | +3.44 | 1.06 | 109.5% | 93.7% | 4.6% | 1.4% |
| 12 Years | +2.91 | 1.06 | 109.5% | 93.7% | 3.8% | 1.2% |
| 15 Years | +2.40 | 1.06 | 109.5% | 93.7% | 3.0% | 1.0% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Limited | 9.57% |
| 2 | Axis Bank Limited | 8.59% |
| 3 | Bajaj Finance Limited | 5.23% |
| 4 | Kotak Mahindra Bank Limited | 5.17% |
| 5 | Multi Commodity Exchange of India Limited | 5.14% |
| 6 | State Bank of India | 4.93% |
| 7 | SBI Life Insurance Company Limited | 4.74% |
| 8 | Shriram Finance Limited | 4.37% |
| 9 | HDFC Bank Limited | 4.34% |
| 10 | Ujjivan Small Finance Bank Limited | 4.19% |