LIC MF Banking and Financial Services Fund
Direct · GrowthAI Summary
LIC MF Banking and Financial Services Fund has delivered SIP XIRR of 13.10% over 1Y, 10.28% over 3Y, and 11.03% over 5Y, but these trail the category average SIP XIRR of 14.10%, 16.82%, and 16.95% respectively across all periods. Against the NIFTY 50, the fund shows positive alpha over the recent 1Y (9.18%), 3Y (1.85%), and 5Y (3.78%) windows, but negative alpha over 7Y (-0.55%), 10Y (-1.74%), and longer horizons. This suggests recent outperformance versus the broad market, though long-term lump-sum returns have lagged the benchmark.
The fund carries a beta above 1 across all periods (1.05 to 1.14), indicating higher volatility than the NIFTY 50, with downside capture exceeding 100% in most windows (up to 111.12% over 10Y), meaning it tends to fall slightly more than the benchmark in down markets. It has experienced 9 drawdown events greater than 10%, with a maximum drawdown duration of 871 days and a recovery period of 316 days, highlighting extended recovery times typical of sectoral funds. Calmar ratios of roughly 0.22 to 0.26 across periods indicate modest risk-adjusted returns relative to drawdown risk.
The portfolio is concentrated in 25 holdings, with banks dominating at 52.5% of assets, led by ICICI Bank (14.04%), Axis Bank (8.90%), and HDFC Bank (8.22%). Finance (21.6%) and Capital Markets (13.3%) round out the top exposures, with smaller positions in Fintech (6.8%) and Insurance (3.8%). The top 10 holdings account for roughly 61.5% of NAV, so the fund's fortunes are closely tied to large private-sector banks and select financial franchises.
The fund underperforms the category average SIP XIRR in every measured period, with the gap widest over 3Y (10.28% vs 16.82%) and 5Y (11.03% vs 16.95%). Calendar year returns show high variability, ranging from 35.66% in 2017 to -16.85% in 2018, reflecting the cyclical nature of the financial sector. Consistency relative to sectoral peers is therefore weak on a like-for-like SIP basis, even though recent benchmark alpha has been positive.
This fund is suitable only for investors with high risk tolerance who already hold a diversified core portfolio and want a tactical exposure to India's financial sector. A time horizon of at least 5 to 7 years is advisable, given the extended drawdown durations and sector cyclicality observed historically. Investors should size the position modestly, as sectoral funds can underperform for multi-year stretches.
- Strong recent alpha versus NIFTY 50, with 9.18% alpha over 1Y and 3.78% over 5Y, aided by upside capture above 102% in those windows
- Exposure to high-quality large private banks like ICICI Bank, HDFC Bank, and Axis Bank, which together form over 31% of the portfolio
- Diversification within the financial sector across banks, finance, capital markets, fintech, and insurance sub-segments
- SIP XIRR trails the category average in every period, with a gap of over 6 percentage points at 3Y and 5Y horizons
- Negative alpha over 7Y, 10Y, 12Y, and 15Y windows, with downside capture above 107% in longer periods, indicating persistent long-term underperformance versus the benchmark
Generated on 06-09-2026, 7:52 PM. 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 | ₹12.83 L | 13.1% | -65.2% | 109.8% |
| 3 Years | ₹36.00 L | ₹42.96 L | 10.3% | -27.3% | 25.9% |
| 5 Years | ₹60.00 L | ₹81.23 L | 11.0% | -13.7% | 20.4% |
| 7 Years | ₹84.00 L | ₹1.31 Cr | 12.3% | 4.5% | 16.1% |
| 10 Years | ₹1.20 Cr | ₹2.18 Cr | 11.5% | 9.1% | 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 | 13.1% | 14.4% | 14.1% | -1.3% |
| 3 Years | 10.3% | 11.1% | 16.8% | -0.8% |
| 5 Years | 11.0% | 10.4% | 16.9% | +0.6% |
| 7 Years | 12.3% | 10.6% | 16.5% | +1.7% |
| 10 Years | 11.5% | 11.5% | 16.7% | +0.0% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 11.7% | 11.1% | -34.9% | 80.9% | 0.27 | 0.51 | 74% | — | — |
| 3 Years | 10.1% | 10.9% | -13.6% | 31.1% | 0.44 | 0.81 | 90% | — | — |
| 5 Years | 10.1% | 10.5% | -5.5% | 23.9% | 0.62 | 1.40 | 93% | — | — |
| 10 Years | 10.4% | 10.2% | 7.4% | 14.0% | 2.79 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +9.18 | 1.14 | 113.4% | 102.0% | 5.0% | -2.9% |
| 3 Years | +1.85 | 1.07 | 103.9% | 101.0% | 9.7% | 7.8% |
| 5 Years | +3.78 | 1.05 | 102.8% | 97.8% | 11.7% | 7.8% |
| 7 Years | -0.55 | 1.10 | 107.4% | 107.5% | 11.8% | 11.8% |
| 10 Years | -1.74 | 1.11 | 109.5% | 111.1% | 9.5% | 10.8% |
| 12 Years | -1.55 | 1.11 | 108.8% | 110.3% | 7.8% | 9.1% |
| 15 Years | -1.07 | 1.11 | 108.8% | 110.3% | 6.2% | 7.2% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Ltd. | 14.04% |
| 2 | Axis Bank Ltd. | 8.90% |
| 3 | HDFC Bank Ltd. | 8.22% |
| 4 | AU Small Finance Bank Ltd. | 5.76% |
| 5 | Bajaj Finance Ltd. | 5.49% |
| 6 | IndusInd Bank Ltd. | 4.93% |
| 7 | PB Fintech Ltd. | 3.68% |
| 8 | BSE Ltd. | 3.68% |
| 9 | Karur Vysya Bank Ltd. | 3.41% |
| 10 | Nippon Life India Asset Management Ltd. | 3.39% |