HSBC Financial Services Fund
Direct · GrowthAI Summary
HSBC Financial Services Fund delivered a 1Y SIP XIRR of 9.59%, which trails the category average SIP XIRR of 15.91% by a meaningful margin. Calendar year returns show 23.19% in 2025 but only 4.26% in 2026 so far, indicating uneven recent performance. The 1Y rolling return mean of 10.84% suggests moderate lump-sum return consistency over the period.
The fund shows a maximum drawdown of just -0.15% with a short 40-day duration and 38-day recovery, indicating limited recent downside stress. One drawdown event exceeding 10% has occurred historically, which is notable for a sector fund. The 1Y Calmar ratio of 0.73 reflects a moderate risk-adjusted return profile.
The portfolio is heavily weighted toward banks at 41.3%, led by ICICI Bank (9.83%) and HDFC Bank (9.54%), with capital markets exposure at 26.9% and finance at 18.5%. With only 35 total holdings, the fund is concentrated, and the top 10 positions account for roughly 52.7% of NAV. This focused approach amplifies both upside potential and sector-specific risk.
The fund's 1Y SIP XIRR of 9.59% significantly underperforms the category average of 15.91%, placing it in the lower tier of thematic peers over the recent period. Longer-horizon category averages of 17-19% suggest that financial sector funds have historically rewarded patient investors, though the fund's own long-term XIRR data is not available here for direct comparison. Recent underperformance warrants monitoring before adding fresh capital.
This fund is suitable for investors with high risk tolerance who already hold diversified core equity funds and want a tactical financial sector allocation. A time horizon of at least 5-7 years is advisable given the sector's cyclical nature and the fund's concentration. It should be treated as a satellite holding, not a core portfolio component.
- Low expense ratio of 0.52% for a thematic fund, keeping cost drag minimal
- Exposure to high-quality large-cap financials like ICICI Bank and HDFC Bank anchoring the portfolio
- Recent drawdown behavior is mild, with quick recovery of 38 days from the maximum drawdown
- 1Y SIP XIRR of 9.59% lags the category average of 15.91% by over 6 percentage points
- Heavy concentration in banks (41.3%) and capital markets (26.9%) exposes investors to financial sector cyclicality and regulatory risk
Generated on 05-09-2026, 3:05 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 | ₹12.62 L | 9.6% | -15.1% | 23.6% |
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 | 9.6% | 15.9% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 10.8% | 10.1% | 1.7% | 20.9% | 1.05 | 4.51 | 100% | — | — |
Calmar Ratio by Duration
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Limited | 9.83% |
| 2 | HDFC Bank Limited | 9.54% |
| 3 | Nippon Life India Asset Management Ltd | 5.18% |
| 4 | Shriram Finance Limited | 4.98% |
| 5 | State Bank of India | 4.64% |
| 6 | Kotak Mahindra Bank Limited | 4.19% |
| 7 | Axis Bank Limited | 4.04% |
| 8 | Billionbrains Garage Ventures Ltd. | 3.53% |
| 9 | HDFC Asset Management Company Limited | 3.43% |
| 10 | Karur Vysya Bank Limited | 3.32% |