ICICI Prudential Banking and Financial Services Fund
Direct · GrowthAI Summary
ICICI Prudential Banking and Financial Services Fund has delivered a 10Y SIP XIRR of 14.4% and a 12Y SIP XIRR of 14.47%, comfortably ahead of the NIFTY 50's lump-sum CAGR of 10.33% and 9.03% over the same periods. It has generated positive alpha across all measured horizons, ranging from 0.31% over 7Y to 3.56% over 12Y. However, versus its sectoral peers, it lags — its 5Y SIP XIRR of 14.77% trails the category average of 17.43%.
The fund shows a maximum drawdown of just -0.48% with a 68-day duration, though it needed 315 days to recover, and 12 drawdown events exceeding 10% occurred historically. Calmar ratios between 0.29 and 0.40 across horizons indicate modest risk-adjusted returns relative to its drawdown profile. Downside capture below 100% in the 1Y-5Y windows (85.29%-95.63%) shows it has protected capital better than the NIFTY 50 in falling markets.
The portfolio is a concentrated play on financials, with banks alone at 52.1% and finance and insurance adding 21.9% and 15.2% respectively. Top holdings are dominated by large private banks — HDFC Bank (13.84%), ICICI Bank (13.46%), Kotak Mahindra Bank (9.36%) and Axis Bank (8.88%) — with the top five positions accounting for roughly 50% of NAV. With 49 total holdings, diversification exists within the sector but the fund is inherently a high-conviction sector bet.
Within the sectoral/thematic category, the fund underperforms peers on SIP XIRR across 3Y (15.23% vs 16.16%), 5Y (14.77% vs 17.43%) and 7Y (13.62% vs 16.59%), though it roughly matches the category at 1Y (10.69% vs 10.55%). Long-term lump-sum rolling returns are stronger, with the 12Y rolling mean of 16.53% exceeding all other windows. Calendar-year returns have been volatile, spanning from -9.77% in 2026 to 69.92% in 2014, consistent with sector fund behaviour.
This fund suits investors with high risk tolerance who already hold a diversified core portfolio and want targeted exposure to India's banking and financial sector, limited to perhaps 5-10% of overall equity allocation. A horizon of at least 5-7 years is advisable given sector cyclicality and the wide dispersion in calendar-year returns. It is not appropriate as a primary holding or for conservative investors.
- Consistent positive alpha over the NIFTY 50 across all horizons from 1Y to 15Y, peaking at 3.56% over 12Y
- Downside capture below 100% over 1Y-5Y windows (85.29%-95.63%), indicating better downside resilience than the benchmark
- Long-term lump-sum rolling returns strengthen over time, with the 12Y rolling mean at 16.53% and strong 2013-2022 calendar-year showing
- SIP XIRR trails the category average across most horizons, most notably 5Y (14.77% vs 17.43%) and 7Y (13.62% vs 16.59%)
- Heavy concentration with banks at 52.1% of NAV and the top four holdings near 45% of NAV exposes investors to banking-sector cyclicality
- Current year 2026 return of -9.77% and 12 drawdown events exceeding 10% highlight meaningful volatility inherent to the sector approach
Generated on 03-11-2026, 4:34 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 | ₹12.91 L | 20.9% | -71.7% | 133.4% |
| 3 Years | ₹36.00 L | ₹45.61 L | 15.9% | -29.4% | 34.5% |
| 5 Years | ₹60.00 L | ₹87.55 L | 14.6% | -9.8% | 29.8% |
| 7 Years | ₹84.00 L | ₹1.37 Cr | 13.6% | 0.2% | 19.7% |
| 10 Years | ₹1.20 Cr | ₹2.56 Cr | 14.4% | 10.5% | 16.8% |
| 12 Years | ₹1.44 Cr | ₹3.74 Cr | 14.5% | 11.4% | 16.5% |
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 | 20.9% | 14.3% | 10.3% | +6.6% |
| 3 Years | 15.9% | 11.0% | 16.1% | +4.8% |
| 5 Years | 14.6% | 10.4% | 17.2% | +4.3% |
| 7 Years | 13.6% | 10.6% | 16.6% | +3.1% |
| 10 Years | 14.4% | 11.4% | 16.4% | +3.0% |
| 12 Years | 14.5% | 11.3% | 15.8% | +3.1% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 19.1% | 15.4% | -43.3% | 107.6% | 0.49 | 1.34 | 78% | — | — |
| 3 Years | 16.2% | 15.8% | -10.5% | 40.1% | 1.07 | 3.25 | 94% | — | — |
| 5 Years | 15.1% | 14.2% | 1.4% | 32.2% | 1.43 | 19.21 | 100% | — | — |
| 10 Years | 15.7% | 15.7% | 11.2% | 20.7% | 4.56 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +0.83 | 1.01 | 96.7% | 95.3% | -6.8% | -7.6% |
| 3 Years | +2.40 | 0.91 | 89.8% | 85.3% | 9.7% | 7.4% |
| 5 Years | +2.32 | 0.94 | 92.2% | 88.5% | 8.3% | 6.0% |
| 7 Years | -0.09 | 1.05 | 101.1% | 100.3% | 10.5% | 10.4% |
| 10 Years | +0.58 | 1.08 | 106.0% | 105.1% | 11.8% | 10.9% |
| 12 Years | +3.42 | 1.08 | 107.2% | 103.2% | 12.8% | 9.2% |
| 15 Years | +3.01 | 1.09 | 109.0% | 105.5% | 12.9% | 9.6% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | HDFC Bank Ltd. | 13.84% |
| 2 | ICICI Bank Ltd. | 13.46% |
| 3 | Kotak Mahindra Bank Ltd. | 9.36% |
| 4 | Axis Bank Ltd. | 8.88% |
| 5 | State Bank Of India | 5.23% |
| 6 | SBI Life Insurance Company Ltd. | 3.15% |
| 7 | SBI Cards & Payment Services Ltd. | 3.09% |
| 8 | ICICI Lombard General Insurance Company Ltd. | 2.77% |
| 9 | Bajaj Finserv Ltd. | 2.63% |
| 10 | HDFC Life Insurance Company Ltd. | 2.63% |