SBI Dividend Yield Fund
Direct · GrowthAI Summary
SBI Dividend Yield Fund has consistently outperformed the NIFTY 50 across all periods, with a 1Y fund CAGR of 7.2% versus -2.9% for the benchmark and a 3Y fund CAGR of 13.3% versus 7.75%, generating alpha of 8.58% and 5.70% respectively. However, on a SIP basis the fund trails its category, with a 1Y XIRR of 13.87% versus the category average of 15.59% and a 3Y XIRR of 7.09% versus 16.95%. Calendar year returns show deceleration, from 29.26% in 2023 to 1.73% in 2026.
The fund exhibits strong downside protection with a downside capture of 75.21% (1Y) to 80.47% (long-term) against the NIFTY 50, alongside a low beta of roughly 0.84-0.88. Only one drawdown event exceeding 10% has occurred, with a maximum drawdown of -17.85% that took 485 days to recover. Calmar ratios of 0.80 (1Y) and 0.75 (3Y) indicate reasonable risk-adjusted returns relative to the depth of drawdowns.
The 49-stock portfolio is well diversified, with the top holding ICICI Bank at just 6.72% of NAV and the top ten holdings collectively under 33%. Banks is the largest sector at 13.7%, followed by Pharmaceuticals (10.1%) and IT-Software (9.3%), providing a balanced mix of financials, defensives, and cyclicals. The inclusion of names like GAIL, Vedanta Aluminium, and Acme Solar aligns with the dividend yield mandate.
Despite strong benchmark outperformance, the fund lags category peers on SIP XIRR at every horizon, with a 3Y gap of nearly 10 percentage points (7.09% vs 16.95%). Rolling lump-sum returns of 14.28% (1Y) and 13.36% (3Y) suggest steadier lump-sum performance than SIP-based outcomes. The persistent alpha versus NIFTY 50 across 15 years indicates genuine stock-selection skill, even if peers in the dividend yield category have done better recently.
This fund suits conservative equity investors seeking lower volatility exposure through dividend-paying large caps, given its beta below 0.9 and downside capture near 80%. A time horizon of at least 5-7 years is appropriate, as the long-term alpha (1.06% over 10Y) compounds meaningfully over full market cycles. Investors should have moderate risk tolerance and accept that SIP returns may trail category peers during certain stretches.
- Consistent alpha over NIFTY 50 across all periods from 1Y to 15Y, including 8.58% alpha over the last year
- Low downside capture of 75-81% and beta of 0.84-0.88, offering strong downside protection
- Well-diversified 49-stock portfolio with no single holding above 6.72% of NAV
- SIP XIRR significantly trails category averages at all horizons, with a 3Y gap of 7.09% versus 16.95%
- Calendar year returns have decelerated sharply, from 29.26% in 2023 to just 1.73% in 2026
Generated on 10-09-2026, 3:06 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 | ₹12.53 L | 13.9% | -20.2% | 54.3% |
| 3 Years | ₹36.00 L | ₹39.63 L | 7.1% | 2.1% | 12.7% |
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 | 13.9% | 14.4% | 15.6% | -0.6% |
| 3 Years | 7.1% | 11.1% | 16.9% | -4.0% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 14.3% | 7.0% | -7.5% | 43.3% | 0.49 | 1.77 | 84% | — | — |
| 3 Years | 13.4% | 13.4% | 11.9% | 15.8% | 8.01 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +8.58 | 0.84 | 87.8% | 75.2% | 7.2% | -2.9% |
| 3 Years | +5.70 | 0.88 | 89.5% | 81.4% | 13.3% | 7.8% |
| 5 Years | +3.10 | 0.87 | 88.4% | 80.5% | 10.3% | 7.3% |
| 7 Years | +1.91 | 0.87 | 88.4% | 80.5% | 7.2% | 5.2% |
| 10 Years | +1.06 | 0.87 | 88.4% | 80.5% | 5.0% | 3.6% |
| 12 Years | +0.73 | 0.87 | 88.4% | 80.5% | 4.2% | 3.0% |
| 15 Years | +0.42 | 0.87 | 88.4% | 80.5% | 3.3% | 2.4% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Ltd. | 6.72% |
| 2 | Larsen & Toubro Ltd. | 3.78% |
| 3 | GAIL (India) Ltd. | 3.14% |
| 4 | Acme Solar Holdings Ltd. | 3.13% |
| 5 | Tata Consultancy Services Ltd. | 3.08% |
| 6 | State Bank of India | 2.98% |
| 7 | Infosys Ltd. | 2.80% |
| 8 | Vedanta Aluminium Metal Ltd. | 2.52% |
| 9 | Interglobe Aviation Ltd. | 2.51% |
| 10 | Maruti Suzuki India Ltd. | 2.47% |