DSP Banking and Financial Services Fund
Direct · GrowthAI Summary
DSP Banking and Financial Services Fund delivered a 1Y SIP XIRR of 14.96%, outperforming the category average of 12.23% by 2.73 percentage points. The 1Y rolling return mean of 16.66% indicates solid lump-sum return consistency over rolling windows. Calendar year returns have been uneven, ranging from 22.85% in 2025 to just 0.58% in 2023 and -0.6% in 2026 year-to-date, reflecting the cyclical nature of the financial sector.
The fund shows a maximum drawdown of just -0.15% over the measured period with a quick 33-day drawdown duration and 85-day recovery, indicating contained recent volatility. Two drawdown events exceeding 10% have occurred historically, a reminder that sector funds can experience deep corrections. A 1Y Calmar Ratio of 1.2153 suggests reasonable risk-adjusted returns relative to the drawdown experienced.
The portfolio is concentrated in Banks at 48.4%, followed by Finance at 23.6% and Insurance at 12.4%, which is expected for a sectoral financial services fund. Top holdings include ICICI Bank (9.7%), HDFC Bank (6.07%), and Axis Bank (5.7%), with the top 10 positions accounting for roughly 53% of the NAV across only 32 total holdings. This concentrated structure amplifies both upside potential and downside risk tied to the financial sector cycle.
The fund's 1Y SIP XIRR of 14.96% places it ahead of the category average of 12.23%, demonstrating competitive recent performance among sectoral peers. However, longer-term category averages of 18.55% (3Y) and 19.62% (5Y) suggest peers have delivered stronger compounding over extended periods. Performance consistency is a watch area given the wide swing in calendar year returns from 22.85% to near-zero or negative outcomes.
This fund is suitable for investors with high risk tolerance who want tactical exposure to the Indian financial sector and already hold diversified core funds. A time horizon of at least 5-7 years is advisable to ride out sector cycles, as evidenced by the flat 2023 and negative 2026 returns. It should be treated as a satellite allocation rather than a core holding, ideally capped at 10-15% of the overall portfolio.
- 1Y SIP XIRR of 14.96% beats the category average of 12.23% by 2.73 percentage points
- Contained recent risk with a maximum drawdown of only -0.15% and a Calmar Ratio of 1.2153
- Exposure to quality market leaders such as ICICI Bank, HDFC Bank, and Bajaj Finance with a low expense ratio of 0.63%
- Heavy concentration in Banks (48.4%) and only 32 holdings makes returns highly dependent on a single sector cycle
- Inconsistent calendar year performance, including 0.58% in 2023 and -0.6% in 2026, highlights significant cyclicality risk
Generated on 13-10-2026, 3:09 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 | ₹12.96 L | 16.6% | -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 | Category avg |
|---|---|---|
| 1 Year | 16.6% | 12.2% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 17.7% | 17.9% | 2.6% | 32.1% | 1.76 | 25.91 | 100% | — | — |
Calmar Ratio by Duration
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Limited | 9.70% |
| 2 | HDFC Bank Limited | 6.07% |
| 3 | Axis Bank Limited | 5.70% |
| 4 | Cholamandalam Investment and Finance Co Limited | 5.16% |
| 5 | Kotak Mahindra Bank Limited | 4.63% |
| 6 | State Bank of India | 4.63% |
| 7 | Ujjivan Small Finance Bank Limited | 4.57% |
| 8 | Shriram Finance Limited | 4.47% |
| 9 | Bajaj Finance Limited | 4.32% |
| 10 | Max Financial Services Limited | 4.18% |