SBI Banking and Financial Services Fund
Direct · GrowthAI Summary
SBI Banking and Financial Services Fund has delivered strong SIP returns, with XIRR of 17.99% over 3Y and 16.77% over 10Y, beating the NIFTY 50 across most periods with alpha of 8.19% over 3Y and 5.93% over 1Y. Compared to the category average SIP XIRR, the fund outperformed over 1Y (12.9% vs 10.56%) and 3Y (17.99% vs 16.17%), though it lagged over 5Y (16.39% vs 17.43%) and 7Y (16.4% vs 16.6%). The 2026 calendar year return of -9.64% reflects the current downturn, though the fund's 1Y benchmark CAGR of -6.73% still exceeds the NIFTY 50's -10.92%.
The fund carries a beta above 1 across all periods (1.03-1.10), indicating slightly higher volatility than the NIFTY 50, which is typical for a sectoral banking fund. Downside capture is generally favorable over 3Y (93.02%) and 5Y (96.04%), meaning it has historically fallen less than the benchmark in down markets while still capturing more upside. However, over 7Y and 10Y the downside capture exceeds 103%, and 11 drawdown events above 10% confirm that this is a cyclical, high-volatility exposure.
The portfolio is concentrated in 38 holdings, with HDFC Bank (13.04%), ICICI Bank (12.77%), and Kotak Mahindra Bank (10.19%) together accounting for roughly 36% of NAV. Sector concentration is characteristic of the theme, with Banks at 49.3% and Finance at 25.0%, meaning nearly three-quarters of the fund is in lending businesses. Minor diversification comes from insurance (10.0%), capital markets (4.9%), and fintech (3.5%), including a 3.46% stake in One 97 Communications.
The fund sits in the upper half of its sectoral/thematic category on SIP returns over 1Y and 3Y, though it trails the category average over 5Y and 7Y, suggesting peers with broader financial services exposure may have fared better in certain stretches. Calendar year returns show reasonable consistency, with positive years in 9 of the last 11 (2015 and 2026 being the exceptions) and strong peaks such as 43.39% in 2017 and 21.2% in 2019. Long-term lump-sum performance is solid, with a 10Y rolling return of 17.22% versus a 10Y benchmark CAGR of 10.33%.
This fund suits investors who understand sector concentration risk and want tactical or satellite exposure to the Indian financial sector, ideally as a补充 to a diversified core portfolio rather than a standalone holding. A time horizon of at least 5-7 years is recommended, given cyclicality and the current -9.64% calendar year return in 2026. Investors should have high risk tolerance, as drawdowns above 10% have occurred 11 times and recovery from the maximum drawdown took 261 days.
- Consistent alpha over the NIFTY 50 across all measured periods, ranging from 2.60% (7Y) to 8.19% (3Y)
- SIP XIRR of 17.99% over 3Y and 16.77% over 10Y, outperforming category averages over 1Y and 3Y
- Low expense ratio of 0.74% (Direct plan) for a sectoral fund, paired with favorable 3Y downside capture of 93.02%
- Heavy sector concentration, with Banks (49.3%) and Finance (25.0%) comprising roughly 74% of the portfolio, exposing investors to banking cycle risks
- Downside capture above 100% over 7Y (104.67%) and 10Y (103.46%), indicating amplified losses in extended downturns, along with a -9.64% return in 2026
Generated on 02-11-2026, 3:32 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 | ₹13.06 L | 19.6% | -64.2% | 129.2% |
| 3 Years | ₹36.00 L | ₹46.70 L | 16.9% | -19.8% | 30.1% |
| 5 Years | ₹60.00 L | ₹89.60 L | 16.0% | -3.1% | 24.3% |
| 7 Years | ₹84.00 L | ₹1.49 Cr | 16.4% | 11.5% | 20.3% |
| 10 Years | ₹1.20 Cr | ₹2.93 Cr | 16.8% | 13.4% | 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 | 19.6% | 14.3% | 10.6% | +5.3% |
| 3 Years | 16.9% | 11.0% | 16.2% | +5.9% |
| 5 Years | 16.0% | 10.4% | 17.4% | +5.6% |
| 7 Years | 16.4% | 10.6% | 16.6% | +5.8% |
| 10 Years | 16.8% | 11.4% | 16.4% | +5.3% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 18.4% | 17.6% | -34.2% | 98.2% | 0.64 | 1.78 | 88% | — | — |
| 3 Years | 16.9% | 17.1% | -1.8% | 31.0% | 1.72 | 10.02 | 100% | — | — |
| 5 Years | 15.9% | 15.1% | 4.7% | 28.6% | 2.24 | 142.39 | 100% | — | — |
| 10 Years | 17.2% | 17.2% | 14.1% | 20.9% | 7.10 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +4.31 | 1.09 | 109.3% | 103.6% | -6.1% | -9.0% |
| 3 Years | +7.62 | 1.03 | 103.2% | 93.3% | 14.6% | 7.0% |
| 5 Years | +5.02 | 1.03 | 102.6% | 96.0% | 10.5% | 5.5% |
| 7 Years | +2.52 | 1.09 | 107.5% | 104.7% | 13.0% | 10.1% |
| 10 Years | +3.45 | 1.09 | 107.6% | 103.5% | 14.5% | 10.7% |
| 12 Years | +5.04 | 1.08 | 107.4% | 101.5% | 13.8% | 8.6% |
| 15 Years | +4.06 | 1.08 | 107.4% | 101.5% | 10.9% | 6.8% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | HDFC Bank Ltd. | 13.04% |
| 2 | ICICI Bank Ltd. | 12.77% |
| 3 | Kotak Mahindra Bank Ltd. | 10.19% |
| 4 | Bajaj Finance Ltd. | 6.85% |
| 5 | HDFC Life Insurance Company Ltd. | 4.66% |
| 6 | One 97 Communications Ltd. | 3.46% |
| 7 | Bank of Baroda | 2.96% |
| 8 | Muthoot Finance Ltd. | 2.87% |
| 9 | Axis Bank Ltd. | 2.82% |
| 10 | Manappuram Finance Ltd. | 2.48% |