LIC MF Banking and Financial Services Fund
Direct · GrowthAI Summary
The fund's SIP XIRR trails its category averages across all horizons, with a 3Y XIRR of 11.58% versus the category's 16.22% and a 10Y XIRR of 11.35% versus 16.44%. Against the NIFTY 50, it shows positive alpha of 4.12% over 1Y and 1.90% over 5Y, but negative alpha over longer periods, including -2.73% over 10Y. Lump-sum performance has also lagged, with a 10Y Fund CAGR of 7.67% versus the benchmark's 10.01%.
The fund has a beta consistently above 1 (1.05 to 1.14), indicating higher volatility than the NIFTY 50, and its downside capture exceeds 100% in most periods, meaning it falls slightly more than the benchmark in down markets. The maximum drawdown duration of 871 days with a 316-day recovery reflects prolonged recovery periods typical of a sectoral fund. Calmar ratios of roughly 0.22 to 0.26 across horizons indicate modest risk-adjusted returns relative to drawdowns.
The portfolio is heavily concentrated in Banks at 49.3%, followed by Finance at 21.8% and Capital Markets at 14.5%, with only 24 total holdings. ICICI Bank is the largest position at 13.98%, and the top 10 holdings account for roughly 60% of NAV. Notable fintech exposure via One 97 Communications (5.01%) and PB Fintech (4.92%) adds growth-oriented but higher-risk positions.
The fund underperforms the sectoral/thematic category's SIP XIRR at every measured horizon, with the gap widest over 5Y (12.26% vs 17.45%). Calendar year returns show high variability, ranging from 35.66% in 2017 to -16.85% in 2018 and -12.93% in 2026. This inconsistency suggests the fund has struggled to keep pace with both peers and the broader benchmark over long holding periods.
This fund suits investors who already hold diversified core equity funds and want a tactical, high-conviction bet on the Indian financial sector. A horizon of at least 5-7 years is advisable given the long drawdown recovery periods and sector cyclicality. Investors should have a high risk tolerance, as returns can swing sharply year to year and the fund has underperformed its category over the long term.
- Positive alpha versus NIFTY 50 over 1Y (4.12%) and 5Y (1.90%), with 5Y Fund CAGR of 6.31% beating the benchmark's 4.51%
- Diversified exposure across the financial ecosystem, including banks (49.3%), finance (21.8%), capital markets (14.5%), and fintech (9.9%)
- Reasonable expense ratio of 1.2% for a Direct sectoral fund
- SIP XIRR lags the category average at every horizon, with a 10Y gap of over 5 percentage points (11.35% vs 16.44%)
- Heavy concentration in Banks (49.3%) and only 24 holdings creates significant sector and single-stock risk, amplified by negative long-term alpha versus the NIFTY 50
Generated on 25-10-2026, 2:20 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 | ₹12.80 L | 12.8% | -65.2% | 109.8% |
| 3 Years | ₹36.00 L | ₹42.77 L | 10.2% | -27.3% | 25.9% |
| 5 Years | ₹60.00 L | ₹80.77 L | 11.0% | -13.7% | 20.4% |
| 7 Years | ₹84.00 L | ₹1.30 Cr | 12.2% | 4.5% | 16.1% |
| 10 Years | ₹1.20 Cr | ₹2.15 Cr | 11.3% | 8.3% | 13.0% |
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 | 12.8% | 14.3% | 10.6% | -1.5% |
| 3 Years | 10.2% | 11.0% | 16.2% | -0.9% |
| 5 Years | 11.0% | 10.4% | 17.4% | +0.6% |
| 7 Years | 12.2% | 10.6% | 16.6% | +1.7% |
| 10 Years | 11.3% | 11.4% | 16.4% | -0.1% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 11.5% | 10.8% | -34.9% | 80.9% | 0.26 | 0.49 | 74% | — | — |
| 3 Years | 10.0% | 10.8% | -13.6% | 31.1% | 0.44 | 0.80 | 90% | — | — |
| 5 Years | 10.0% | 10.4% | -5.5% | 23.9% | 0.63 | 1.42 | 93% | — | — |
| 10 Years | 10.2% | 9.9% | 7.4% | 14.0% | 2.60 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +2.59 | 1.14 | 109.1% | 107.3% | -12.4% | -12.4% |
| 3 Years | -0.89 | 1.07 | 102.3% | 102.8% | 5.2% | 6.1% |
| 5 Years | +1.74 | 1.05 | 102.2% | 99.8% | 6.2% | 4.5% |
| 7 Years | -1.38 | 1.10 | 106.4% | 107.5% | 8.8% | 9.8% |
| 10 Years | -2.87 | 1.11 | 108.4% | 111.3% | 7.7% | 10.2% |
| 12 Years | -2.08 | 1.11 | 108.4% | 110.5% | 6.7% | 8.6% |
| 15 Years | -1.48 | 1.11 | 108.4% | 110.5% | 5.3% | 6.8% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Ltd. | 13.98% |
| 2 | AU Small Finance Bank Ltd. | 7.36% |
| 3 | Axis Bank Ltd. | 5.27% |
| 4 | One 97 Communications Ltd. | 5.01% |
| 5 | Bajaj Finance Ltd. | 5.00% |
| 6 | PB Fintech Ltd. | 4.92% |
| 7 | IndusInd Bank Ltd. | 4.87% |
| 8 | HDFC Bank Ltd. | 4.75% |
| 9 | City Union Bank Ltd. | 4.36% |
| 10 | Shriram Finance Ltd. | 4.22% |