Helios Financial Services Fund

The fund's 1-year SIP XIRR of 9.66% is significantly below the category average of 13.57%, indicating underperformance over the past year. Its 1-year rolling return of 9.39% is also modest, and the calendar year returns show volatility, with a strong 12.1% in 2025 but a negative -2.04% in 2026. Overall, the fund has lagged its sectoral peers in the recent period.

The fund exhibits a maximum drawdown of -17.68%, with an average drawdown of -4.34%, and has experienced two drawdown events exceeding 10%, indicating notable downside risk. The maximum drawdown duration of 87 days and the fact that it has not yet recovered from the maximum drawdown highlight prolonged recovery periods. The Calmar ratio of 0.53 for 1 year suggests moderate risk-adjusted returns, but the negative calendar year return in 2026 raises concerns about volatility.

The fund is heavily concentrated in financial services, with top holdings in major banks like ICICI Bank (13.74%), HDFC Bank (12.13%), and State Bank of India (6.38%), along with finance and capital markets companies. Sector concentration is extreme, with Banks (38.7%), Finance (28.6%), and Capital Markets (22.8%) together accounting for over 90% of the portfolio. This lack of diversification beyond financials increases vulnerability to sector-specific downturns.

The fund's 1-year XIRR of 9.66% is well below the category average of 13.57%, placing it in the lower quartile of sectoral funds. Its performance has been inconsistent, with a strong 2025 but a negative 2026, suggesting a lack of stability relative to peers. The fund's focus on financial services may have contributed to its underperformance if the sector has been out of favor recently.

This fund is suitable for investors with a high risk tolerance and a long-term horizon (5+ years) who are specifically bullish on the Indian financial services sector. It is not appropriate for conservative investors or those seeking diversified exposure, given the extreme sector concentration and recent underperformance. Investors should be prepared for significant drawdowns and periods of underperformance relative to broader equity funds.

• Strong exposure to leading financial institutions like ICICI Bank and HDFC Bank, which are well-capitalized and systemically important.
• Low expense ratio of 0.84% for a sectoral fund, which is cost-efficient for investors.
• Demonstrated ability to deliver strong returns in favorable years, as seen with a 12.1% return in 2025.

• Significant underperformance versus the category average (9.66% vs 13.57% 1Y XIRR), indicating poor recent relative returns.
• Extreme sector concentration in financials (over 90% in Banks, Finance, and Capital Markets), leading to high vulnerability to sector-specific risks and drawdowns.