HDFC Banking and Financial Services Fund
Direct · GrowthAI Summary
HDFC Banking and Financial Services Fund has delivered strong SIP XIRR of 16.49% over 1Y and 16.99% over 3Y, beating the 1Y category average of 14.1% and the 3Y average of 16.82%, though its 5Y XIRR of 14.13% trails the category average of 16.95%. Against the NIFTY 50, the fund shows consistent alpha across all periods, including 11.61% over 1Y and 6.13% over 3Y, with lump-sum CAGRs of 13.97% (3Y) versus the benchmark's 7.75%. Recent calendar-year returns have been solid, with 22.52% in 2023 and 17.36% in 2025, though 2026 is marginally negative at -0.41%.
The fund carries a beta slightly above 1 (1.06-1.18), amplifying market moves, with 1Y upside capture of 117.81% but downside capture of 103.76%, meaning it falls slightly more than the benchmark in weak markets. It has experienced 4 drawdown events exceeding 10%, with the maximum drawdown lasting 233 days and taking 148 days to recover. Calmar ratios of 0.74 (1Y) and 0.80 (3Y) indicate reasonable but not exceptional risk-adjusted returns for a sectoral fund.
The portfolio is heavily concentrated in Banks at 57.9% of NAV, followed by Finance at 23.1%, with the top five holdings — ICICI Bank (14.38%), HDFC Bank (12.18%), Kotak Mahindra Bank (8.17%), Axis Bank (7.76%), and SBI (6.33%) — accounting for nearly 49% of the fund. With 37 total holdings, diversification exists within financial services but the fund is entirely exposed to a single sector theme. Smaller allocations to Insurance (9.1%), Capital Markets (7.3%), and Fintech (1.6%) provide modest breadth within the theme.
The fund outperforms the category on 1Y and 3Y SIP XIRR but underperforms on longer horizons, with its 5Y XIRR of 14.13% falling roughly 2.8 percentage points below the category average of 16.95%. This suggests recent performance is stronger than its longer-term track record relative to peers. The consistent positive alpha versus NIFTY 50 across 1Y through 15Y windows indicates genuine stock-selection skill even where category-relative performance has softened.
This fund suits investors with high risk tolerance who want tactical or satellite exposure to the Indian financial sector, and it should not form the core of a portfolio given its sectoral concentration. A horizon of at least 5 years is advisable to ride out sector cycles, as evidenced by 4 drawdowns exceeding 10% and a 233-day maximum drawdown duration. Investors comfortable with banking-sector cyclicality, interest-rate sensitivity, and concentration risk will find the fund's consistent benchmark alpha attractive.
- Consistent positive alpha versus NIFTY 50 across all measured periods, from 11.61% over 1Y to 1.83% over 15Y
- Strong recent SIP returns of 16.49% (1Y) and 16.99% (3Y), beating category averages of 14.1% and 16.82% respectively
- Favorable downside capture below 100% (98.17% over 3Y) combined with upside capture above 105%, indicating better-than-benchmark performance in both market directions
- Extreme sector concentration with 57.9% in Banks and nearly 49% of NAV in just five banking stocks, exposing investors to sector-specific shocks
- 5Y SIP XIRR of 14.13% trails the category average of 16.95%, showing weaker long-horizon relative performance versus sectoral peers
Generated on 11-09-2026, 3:18 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 | ₹13.01 L | 16.5% | -25.5% | 41.0% |
| 3 Years | ₹36.00 L | ₹46.07 L | 17.0% | 3.5% | 27.2% |
| 5 Years | ₹60.00 L | ₹84.91 L | 14.1% | 11.7% | 15.5% |
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 | 16.5% | 14.4% | 14.1% | +2.1% |
| 3 Years | 17.0% | 11.1% | 16.8% | +5.9% |
| 5 Years | 14.1% | 10.4% | 16.9% | +3.7% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 16.0% | 16.1% | -5.6% | 40.3% | 1.00 | 4.50 | 96% | — | — |
| 3 Years | 17.3% | 17.0% | 12.3% | 26.1% | 3.63 | — | 100% | — | — |
| 5 Years | 14.1% | 14.1% | 13.4% | 14.8% | 19.38 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +11.61 | 1.18 | 117.8% | 103.8% | 7.0% | -2.9% |
| 3 Years | +6.13 | 1.07 | 106.2% | 98.2% | 14.0% | 7.8% |
| 5 Years | +5.58 | 1.06 | 105.2% | 98.4% | 13.5% | 7.8% |
| 7 Years | +3.59 | 1.06 | 104.7% | 98.6% | 9.9% | 6.3% |
| 10 Years | +2.58 | 1.06 | 104.7% | 98.6% | 6.8% | 4.4% |
| 12 Years | +2.20 | 1.06 | 104.7% | 98.6% | 5.7% | 3.6% |
| 15 Years | +1.83 | 1.06 | 104.7% | 98.6% | 4.5% | 2.9% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Ltd. | 14.38% |
| 2 | HDFC Bank Ltd.£ | 12.18% |
| 3 | Kotak Mahindra Bank Limited | 8.17% |
| 4 | Axis Bank Ltd. | 7.76% |
| 5 | State Bank of India | 6.33% |
| 6 | Shriram Finance Ltd. | 4.50% |
| 7 | Bajaj Finance Ltd. | 4.11% |
| 8 | SBI Life Insurance Company Ltd. | 3.60% |
| 9 | Five-Star Business Finance Limited | 2.61% |
| 10 | Au Small Finance Bank Ltd. | 2.43% |