SBI PSU Fund
Direct · GrowthAI Summary
SBI PSU Fund has delivered strong SIP returns, with a 3Y XIRR of 24.55% and 5Y XIRR of 19.75%, well above the category averages of 16.4% and 17.53% respectively. Over longer horizons, the 10Y XIRR of 17.54% and 12Y XIRR of 17.06% also exceed category averages of 16.47% and 15.83%. The fund has consistently outperformed the NIFTY 50 on a lump-sum basis, with a 5Y Fund CAGR of 21.4% versus the benchmark's 5.04% and alpha of 16.44%.
The fund has experienced 11 drawdown events exceeding 10%, with the maximum drawdown taking 869 days to recover from, reflecting the cyclical and volatile nature of PSU stocks. Beta has ranged from 0.86 to 1.15 across periods, and the 3Y downside capture of 101.68% indicates the fund fully participates in market declines over medium horizons. Calmar ratios between 0.23 and 0.36 suggest moderate risk-adjusted efficiency, with returns compensating for drawdown risk but not exceptionally so.
The portfolio is concentrated in 24 holdings, with State Bank of India as the largest position at 16.39% of NAV, followed by NTPC at 8.28% and Bharat Electronics at 7.97%. Sector exposure is heavily skewed toward Banks (25.3%), Power (16.9%), and Gas (11.8%), making the fund a concentrated bet on PSU-dominated sectors. This concentration amplifies both upside potential and sector-specific downside risk.
The fund has beaten its sectoral/thematic category average SIP XIRR across every measured horizon, from 1Y (16.35% vs 10.87%) to 12Y (17.06% vs 15.83%). Calendar year returns show strong consistency in favorable years, including 54.14% in 2023 and 23.78% in 2024, though losses in 2018 (-22.57%) and 2020 (-9.79%) highlight cyclicality. Its alpha over NIFTY 50 has been positive across all periods, though it narrows over longer horizons (1.03% over 15Y).
This fund suits investors with high risk tolerance who want tactical exposure to the PSU theme and can withstand sharp, prolonged drawdowns. A time horizon of at least 5-7 years is advisable, given the 869-day maximum drawdown duration and the sector's cyclical nature. It should be treated as a satellite allocation within a diversified portfolio rather than a core holding, given its thematic concentration.
- SIP XIRR beats the category average across all horizons, including 24.55% over 3Y versus the category's 16.4%
- Consistent positive alpha versus NIFTY 50 across all measured periods, with 16.44% alpha over 5Y
- Low expense ratio of 0.85% for a sectoral/thematic fund from a large, established AMC
- Heavy sector concentration in Banks (25.3%) and Power (16.9%) exposes investors to PSU-sector cyclicality and policy risk
- 11 drawdown events exceeding 10% and a maximum drawdown recovery period of 869 days indicate significant and prolonged downside episodes
Generated on 09-10-2026, 3:14 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 | ₹12.76 L | 18.5% | -55.6% | 143.3% |
| 3 Years | ₹36.00 L | ₹45.10 L | 15.4% | -26.2% | 61.0% |
| 5 Years | ₹60.00 L | ₹80.13 L | 14.8% | -14.1% | 44.7% |
| 7 Years | ₹84.00 L | ₹1.31 Cr | 14.8% | -8.2% | 31.8% |
| 10 Years | ₹1.20 Cr | ₹3.24 Cr | 17.5% | 8.5% | 22.8% |
| 12 Years | ₹1.44 Cr | ₹4.27 Cr | 17.0% | 15.0% | 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 | 18.5% | 14.3% | 10.7% | +4.3% |
| 3 Years | 15.4% | 11.0% | 16.3% | +4.4% |
| 5 Years | 14.8% | 10.4% | 17.5% | +4.4% |
| 7 Years | 14.8% | 10.6% | 16.6% | +4.2% |
| 10 Years | 17.5% | 11.4% | 16.4% | +6.0% |
| 12 Years | 17.0% | 11.3% | 15.8% | +5.7% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 17.0% | 12.3% | -30.9% | 116.0% | 0.36 | 0.90 | 67% | — | — |
| 3 Years | 14.8% | 11.1% | -15.3% | 45.8% | 0.54 | 1.44 | 85% | — | — |
| 5 Years | 12.6% | 7.5% | -5.4% | 35.8% | 0.53 | 1.91 | 92% | — | — |
| 10 Years | 13.3% | 13.8% | 6.6% | 18.4% | 2.58 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +6.29 | 0.84 | 90.8% | 81.4% | -0.7% | -9.5% |
| 3 Years | +12.76 | 1.14 | 116.1% | 100.5% | 18.1% | 5.5% |
| 5 Years | +14.96 | 1.05 | 112.1% | 94.2% | 19.5% | 4.6% |
| 7 Years | +9.40 | 0.90 | 101.3% | 91.7% | 19.5% | 10.6% |
| 10 Years | +3.00 | 0.92 | 100.1% | 96.3% | 13.2% | 10.5% |
| 12 Years | +2.30 | 0.93 | 99.3% | 96.2% | 11.7% | 9.6% |
| 15 Years | +0.83 | 0.94 | 98.8% | 97.3% | 10.1% | 9.4% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | State Bank of India | 16.39% |
| 2 | NTPC Ltd. | 8.28% |
| 3 | Bharat Electronics Ltd. | 7.97% |
| 4 | Power Grid Corporation of India Ltd. | 7.11% |
| 5 | GAIL (India) Ltd. | 6.78% |
| 6 | Bank of Baroda | 5.11% |
| 7 | Oil & Natural Gas Corporation Ltd. | 5.07% |
| 8 | Bharat Petroleum Corporation Ltd. | 4.69% |
| 9 | Bharat Heavy Electricals Ltd. | 4.29% |
| 10 | Container Corporation of India Ltd. | 3.97% |