Mahindra Manulife Banking and Financial Services Fund
Direct · GrowthAI Summary
The fund has delivered a 1Y SIP XIRR of 8.36%, which trails the category average of 14.1% by a meaningful margin. Against the NIFTY 50, however, it shows strong outperformance, with a 1Y Fund CAGR of 11.04% versus the benchmark's -2.9%, generating an alpha of 15.71%. Over longer horizons, the fund's lump-sum CAGRs remain positive (3Y: 3.34%, 5Y: 1.99%) even as the benchmark posted negative returns, though the alpha advantage narrows over time.
The fund carries a beta of roughly 1.17-1.19, indicating higher volatility than the NIFTY 50, with upside capture of about 117-120% but downside capture near 99-101%, meaning it amplifies gains without materially amplifying losses. Recent drawdown behavior is benign, with a maximum drawdown of just -0.16% lasting 33 days, though one drawdown event exceeding 10% has occurred historically. The 1Y Calmar ratio of 0.69 suggests moderate risk-adjusted efficiency relative to the depth of its worst recent drawdown.
The portfolio is heavily concentrated in banks (53.2%) and finance (24.2%), with ICICI Bank (12.2%), HDFC Bank (9.08%), and Axis Bank (8.72%) as the top positions. With only 29 total holdings, the fund is fairly concentrated, and the top 10 holdings account for roughly 62.7% of NAV. Capital markets (9.6%), insurance (5.9%), and fintech (3.2%) provide modest diversification within the broader financial services theme.
The fund's 1Y SIP XIRR of 8.36% lags the sectoral/thematic category average of 14.1% by about 5.7 percentage points, indicating underperformance versus peers in the recent period. Its consistent positive alpha over 3Y through 15Y windows against the NIFTY 50 suggests durable stock-selection skill, even as the magnitude of alpha declines over longer horizons. Calendar year returns of 7.3% in 2025 and 2.65% in 2026 reflect modest but positive recent performance.
This fund suits investors with high risk tolerance who want a tactical, sector-specific bet on Indian financial services, and it should be treated as a satellite holding rather than a core portfolio fund. A horizon of at least 5-7 years is advisable given the sector's cyclicality and the fund's concentrated exposure. Investors should be comfortable with periods of significant underperformance when the banking and financials cycle turns.
- Consistent positive alpha versus NIFTY 50 across all measured horizons, from 15.71% over 1Y to 2.07% over 15Y
- Favorful capture profile with upside capture of 117-120% against downside capture near 99-101%, indicating asymmetric outperformance
- Low recent drawdown of -0.16% with a quick 33-day recovery window, reflecting contained short-term volatility
- 1Y SIP XIRR of 8.36% significantly trails the category average of 14.1%, signaling recent underperformance versus sectoral peers
- Heavy concentration in banks (53.2%) and a small 29-stock portfolio exposes investors to sector-specific and single-stock risk
Generated on 05-09-2026, 3:03 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 | ₹12.54 L | 8.4% | -4.8% | 15.1% |
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 | 8.4% | 14.4% | 14.1% | -6.1% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 10.9% | 11.4% | 7.0% | 13.7% | 2.03 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +15.71 | 1.19 | 120.1% | 101.3% | 11.0% | -2.9% |
| 3 Years | +5.88 | 1.17 | 117.3% | 99.2% | 3.3% | -1.2% |
| 5 Years | +3.96 | 1.17 | 117.3% | 99.2% | 2.0% | -0.7% |
| 7 Years | +3.14 | 1.17 | 117.3% | 99.2% | 1.4% | -0.5% |
| 10 Years | +2.54 | 1.17 | 117.3% | 99.2% | 1.0% | -0.4% |
| 12 Years | +2.30 | 1.17 | 117.3% | 99.2% | 0.8% | -0.3% |
| 15 Years | +2.07 | 1.17 | 117.3% | 99.2% | 0.7% | -0.3% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Limited | 12.20% |
| 2 | HDFC Bank Limited | 9.08% |
| 3 | Axis Bank Limited | 8.72% |
| 4 | State Bank of India | 6.31% |
| 5 | Kotak Mahindra Bank Ltd | 5.76% |
| 6 | Shriram Finance Limited | 5.15% |
| 7 | Bajaj Finance Ltd | 4.69% |
| 8 | Aditya Birla Capital Limited | 3.86% |
| 9 | L&T Finance Limited | 3.65% |
| 10 | Ujjivan Small Finance Bank Limited | 3.24% |