SBI Banking and Financial Services Fund
Direct · GrowthAI Summary
SBI Banking and Financial Services Fund has delivered strong SIP XIRR across horizons, with 20.08% over 1Y, 17.17% over 3Y, and 17.06% over 10Y, beating the category average SIP XIRR in 1Y (14.1%), 3Y (16.82%), and 10Y (16.71%), though slightly trailing at 5Y (16.07% vs 16.95%). Against the NIFTY 50, the fund shows consistent positive alpha across all periods, including 9.54% over 3Y and 4.07% over 10Y, with lump-sum CAGRs well ahead of the benchmark. The 1Y benchmark CAGR of -2.9% versus the fund's 2.22% highlights its ability to protect returns in weak markets.
The fund carries above-market risk with beta above 1 across all periods (1.04 to 1.12), and its 1Y downside capture of 103.12% indicates it falls slightly more than the benchmark in weak markets, though 3Y and 5Y downside capture of 93.33% and 95.52% is favorable. Calmar ratios between 0.36 and 0.43 across horizons suggest moderate risk-adjusted efficiency, and 11 drawdown events exceeding 10% reflect the inherent cyclicality of the financial sector. The very small current maximum drawdown of -0.44% with a 261-day recovery indicates the fund is currently near its peak rather than in a stress phase.
The portfolio is heavily concentrated in banks at 51.9% and finance at 23.8%, with insurance adding 8.9%, making it a pure-play on India's financial sector. Top holdings are blue-chip private banks — HDFC Bank (16.97%), ICICI Bank (10.65%), and Kotak Mahindra Bank (9.68%) — with Bajaj Finance (8.12%) as the largest non-bank position. With only 31 total holdings, the fund is focused rather than diversified, which amplifies both upside and downside relative to broader funds.
The fund outperforms the category average SIP XIRR over 1Y, 3Y, 7Y, and 10Y, with only the 5Y figure (16.07% vs 16.95%) falling short, indicating strong long-term consistency. Calendar year returns show a positive streak from 2016 through 2025, including 43.39% in 2017 and 21.2% in 2019, with the only recent loss being -9.42% in 2015 and -5.02% in 2026 year-to-date. This track record places it among the more reliable performers within the sectoral/thematic category.
This fund suits investors with high risk tolerance who want targeted exposure to India's banking and financial services sector, ideally as a satellite holding of 5-10% of the portfolio rather than a core fund. A time horizon of at least 5-7 years is recommended to ride out sector cycles, as evidenced by drawdown events and the 2015 and 2026 declines. Investors should be comfortable with concentration risk and periods of underperformance versus diversified equity funds when the financial sector is out of favor.
- Consistent positive alpha versus NIFTY 50 across all measured periods, including 9.54% over 3Y and 4.07% over 10Y
- SIP XIRR beats the category average over 1Y, 3Y, 7Y, and 10Y horizons, with 20.08% over the past year
- Portfolio anchored in high-quality large-cap financials such as HDFC Bank, ICICI Bank, and Kotak Mahindra Bank
- Extreme sector concentration with 75.7% in banks and finance combined, exposing investors to financial sector downturns
- Beta above 1 in all periods and 1Y downside capture of 103.12% mean the fund can fall more than the broader market in corrections
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 | ₹13.08 L | 20.1% | -64.2% | 129.2% |
| 3 Years | ₹36.00 L | ₹46.79 L | 17.2% | -19.8% | 30.1% |
| 5 Years | ₹60.00 L | ₹90.11 L | 16.1% | -3.1% | 24.3% |
| 7 Years | ₹84.00 L | ₹1.49 Cr | 16.5% | 11.5% | 20.3% |
| 10 Years | ₹1.20 Cr | ₹2.99 Cr | 17.1% | 14.4% | 18.6% |
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 | 20.1% | 14.4% | 14.1% | +5.7% |
| 3 Years | 17.2% | 11.1% | 16.8% | +6.1% |
| 5 Years | 16.1% | 10.4% | 16.9% | +5.7% |
| 7 Years | 16.5% | 10.6% | 16.5% | +5.9% |
| 10 Years | 17.1% | 11.5% | 16.7% | +5.6% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 18.8% | 17.9% | -34.2% | 98.2% | 0.67 | 1.84 | 89% | — | — |
| 3 Years | 17.0% | 17.3% | -1.8% | 31.0% | 1.71 | 9.93 | 100% | — | — |
| 5 Years | 16.0% | 15.2% | 4.7% | 28.6% | 2.27 | 142.07 | 100% | — | — |
| 10 Years | 17.6% | 17.5% | 14.6% | 20.9% | 8.77 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +6.21 | 1.12 | 110.8% | 103.1% | 2.2% | -2.9% |
| 3 Years | +9.54 | 1.04 | 105.5% | 93.3% | 17.4% | 7.8% |
| 5 Years | +5.87 | 1.04 | 102.8% | 95.5% | 13.8% | 7.8% |
| 7 Years | +2.77 | 1.10 | 108.5% | 105.4% | 15.1% | 11.8% |
| 10 Years | +4.07 | 1.09 | 108.1% | 103.4% | 15.3% | 10.8% |
| 12 Years | +5.15 | 1.09 | 107.7% | 101.6% | 14.2% | 8.8% |
| 15 Years | +4.14 | 1.09 | 107.7% | 101.6% | 11.2% | 7.0% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | HDFC Bank Ltd. | 16.97% |
| 2 | ICICI Bank Ltd. | 10.65% |
| 3 | Kotak Mahindra Bank Ltd. | 9.68% |
| 4 | Bajaj Finance Ltd. | 8.12% |
| 5 | State Bank of India | 6.93% |
| 6 | HDFC Life Insurance Company Ltd. | 4.21% |
| 7 | Muthoot Finance Ltd. | 3.34% |
| 8 | Bank of Baroda | 2.99% |
| 9 | Cholamandalam Investment & Finance Co. Ltd. | 2.38% |
| 10 | ICICI Prudential Life Insurance Company Ltd. | 2.15% |