Motilal Oswal Financial Services Fund
Direct · GrowthAI Summary
The Motilal Oswal Financial Services Fund has delivered consistently positive lump-sum CAGRs across all periods despite the NIFTY 50 posting negative returns, with 1Y fund CAGR of 2.23% versus the benchmark's -10.34%. This translates to strong positive alpha at every window, from 14.28% over 1Y to 1.61% over 15Y. SIP XIRR data is not available for this fund, so comparison against category SIP averages (10.54% at 1Y to 17.42% at 5Y) cannot be made like-for-like.
The fund carries beta of 1.10 versus NIFTY 50, indicating marginally higher sensitivity to market movements, while downside capture of 93.1% shows it has fallen slightly less than the index in down phases. Recent drawdown metrics are benign, with a maximum drawdown of only -0.11% that recovered in 18 days within a 38-day episode, though only one drawdown event exceeding 10% is recorded. Positive alpha across 1Y to 15Y horizons suggests returns have more than compensated for the higher benchmark-relative risk.
The 26-stock portfolio is strongly concentrated in financials, with Banks (38.7%), Finance (20.9%), Capital Markets (12.2%), and Fintech (7.0%) together representing nearly 79% of sector exposure. Top holdings are dominated by lenders, including State Bank of India (6.56%), ICICI Bank (6.31%), and HDFC Bank (3.39%), alongside capital market names like MCX (5.75%) and fintech exposure through One 97 Communications (3.89%). This focused thematic structure offers little diversification outside the financial sector by design.
As a sectoral/thematic fund, its direct peers are other financial sector schemes rather than diversified equity funds, and benchmark-beating alpha across all measured windows from 1Y to 15Y indicates durable sector-level stock selection. Calendar year return of 2.06% in 2026 against a negative benchmark shows continued relative strength. However, absolute lump-sum CAGRs remain modest (0.22% to 0.44% over 5-10Y), reflecting the prolonged weak phase in Indian broad-market equities rather than fund-specific underperformance.
This fund suits investors with high risk tolerance who hold a deliberate, positive view on Indian financials and want concentrated exposure to banks, NBFCs, and capital markets businesses. Sectoral/thematic funds are best used as satellites rather than core holdings, typically capped at 5-10% of an equity portfolio, with a horizon of at least 3-5 years to ride through sector cycles. Investors uncomfortable with single-sector concentration risk should consider diversified alternatives instead.
- Consistent positive alpha versus NIFTY 50 across all horizons from 1Y (14.28%) to 15Y (1.61%), despite a higher beta of 1.10
- Favorable asymmetry with upside capture of 114.82% against downside capture of 93.1%, meaning it outperforms in market rallies and lags less in declines
- Deep sector expertise portfolio with leading financial franchises such as SBI (6.56%), ICICI Bank (6.31%), and Bajaj Finance (4.69%) among 26 holdings
- Extreme sector concentration with roughly 79% in financials, exposing investors to a single sector downturn, as seen in weak 5Y-15Y lump-sum CAGRs of 0.44% to 0.15%
- Modest absolute long-term returns, with fund CAGR of only 0.44% over 5Y and 0.22% over 10Y, raising questions about thematic cyclicality
- SIP XIRR and rolling return data are unavailable, limiting the ability to compare returns against the category SIP averages of 16.16% at 3Y and 17.42% at 5Y
Generated on 05-11-2026, 3:03 AM. Verify before investing.
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.
Not enough data to compute SIP returns.
Not enough data to compute rolling returns.
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +14.38 | 1.09 | 112.8% | 93.1% | 10.9% | -2.6% |
| 3 Years | +5.06 | 1.09 | 112.8% | 93.1% | 3.5% | -0.9% |
| 5 Years | +3.27 | 1.09 | 112.8% | 93.1% | 2.1% | -0.5% |
| 7 Years | +2.51 | 1.09 | 112.8% | 93.1% | 1.5% | -0.4% |
| 10 Years | +1.92 | 1.09 | 112.8% | 93.1% | 1.0% | -0.3% |
| 12 Years | +1.70 | 1.09 | 112.8% | 93.1% | 0.9% | -0.2% |
| 15 Years | +1.49 | 1.09 | 112.8% | 93.1% | 0.7% | -0.2% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | State Bank of India | 6.56% |
| 2 | ICICI Bank Limited | 6.31% |
| 3 | Multi Commodity Exchange of India Limited | 5.75% |
| 4 | Bajaj Finance Ltd | 4.69% |
| 5 | One 97 Communications Limited | 3.89% |
| 6 | Kotak Mahindra Bank Ltd | 3.86% |
| 7 | Cholamandalam Investment and Finance Company Limited | 3.82% |
| 8 | IndusInd Bank Limited | 3.58% |
| 9 | HDFC Bank Limited | 3.39% |
| 10 | RBL Bank Limited | 3.37% |