SBI PSU Fund
Direct · GrowthAI Summary
SBI PSU Fund has delivered strong alpha over the NIFTY 50 across most periods, with 3Y, 5Y, and 7Y alphas of 16.42%, 17.02%, and 10.12% respectively, and a 1Y SIP XIRR of 18.83% versus the benchmark's -2.9% CAGR. However, its SIP XIRR trails the category average across longer horizons — 15.55% vs 16.82% over 3Y and 14.66% vs 16.95% over 5Y — indicating peers in the sectoral/thematic space have done better on SIP returns. Lump-sum performance is more impressive, with a 5Y CAGR of 24.92% against the benchmark's 7.83%.
The fund shows 11 drawdown events exceeding 10%, with a maximum drawdown of -47.06% that took 869 days to traverse and 559 days to recover, reflecting the high cyclicality of PSU stocks. Calendar year returns are volatile, ranging from +54.14% in 2023 to -22.57% in 2018. Risk-adjusted quality is mixed: downside capture below 100% in most periods (76.52% over 1Y, 93.79% over 5Y) is favorable, but Calmar ratios decline from 0.3642 (1Y) to 0.2291 (7Y), showing weaker drawdown-adjusted returns over longer windows.
The portfolio is concentrated in 24 holdings, with State Bank of India alone at 16.66% of NAV, followed by GAIL (9.28%), NTPC (9.07%), and Power Grid (8.49%). Sector exposure is heavily tilted toward Banks (25.4%), Power (19.6%), and Gas (14.3%), meaning nearly 60% of the fund rides on three cyclical sectors. This concentration can amplify returns in favorable PSU cycles but exposes investors to sharp sector-specific downturns.
The fund underperforms the category average SIP XIRR across all horizons from 3Y to 12Y, with the gap widest at 5Y (14.66% vs 16.95%). Its lump-sum benchmark outperformance is strong, but on the SIP metric that investors actually experience, it sits in the middle of the thematic pack. Recent 1Y XIRR of 18.83% does beat the category's 14.1%, suggesting a better recent run.
This fund suits investors with high risk tolerance and a horizon of 7+ years who can withstand drawdowns exceeding 40% and multi-year recovery periods. It should be treated as a satellite allocation, typically 5-10% of a portfolio, rather than a core holding, given its thematic concentration. Investors should be comfortable with the policy-driven and cyclical nature of PSU businesses.
- Consistent alpha over NIFTY 50, with 3Y and 5Y alphas of 16.42% and 17.02% and 5Y fund CAGR of 24.92% vs benchmark's 7.83%
- Favorable downside capture in most periods (76.52% over 1Y, 93.79% over 5Y), cushioning losses in weak markets
- Low expense ratio of 0.85% for a sectoral/thematic fund, with a concentrated 24-stock portfolio enabling high-conviction bets
- SIP XIRR trails the category average across 3Y to 12Y horizons, with the widest gap at 5Y (14.66% vs 16.95%)
- Severe drawdown risk: maximum drawdown of -47.06% with an 869-day drawdown duration and 11 events exceeding 10%, plus heavy concentration in Banks, Power, and Gas (59.3% combined)
Generated on 03-09-2026, 3:01 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 | ₹12.78 L | 18.8% | -55.6% | 143.3% |
| 3 Years | ₹36.00 L | ₹45.23 L | 15.5% | -26.2% | 61.0% |
| 5 Years | ₹60.00 L | ₹79.26 L | 14.7% | -14.1% | 44.7% |
| 7 Years | ₹84.00 L | ₹1.30 Cr | 14.6% | -8.2% | 31.8% |
| 10 Years | ₹1.20 Cr | ₹3.26 Cr | 17.4% | 8.5% | 22.8% |
| 12 Years | ₹1.44 Cr | ₹4.29 Cr | 17.1% | 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 | 18.8% | 14.4% | 14.1% | +4.4% |
| 3 Years | 15.5% | 11.1% | 16.8% | +4.4% |
| 5 Years | 14.7% | 10.4% | 16.9% | +4.2% |
| 7 Years | 14.6% | 10.6% | 16.5% | +4.0% |
| 10 Years | 17.4% | 11.5% | 16.7% | +6.0% |
| 12 Years | 17.1% | 11.4% | 16.3% | +5.7% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 17.1% | 12.6% | -30.9% | 116.0% | 0.37 | 0.91 | 67% | — | — |
| 3 Years | 14.7% | 10.5% | -15.3% | 45.8% | 0.53 | 1.41 | 85% | — | — |
| 5 Years | 12.4% | 7.4% | -5.4% | 35.8% | 0.51 | 1.82 | 92% | — | — |
| 10 Years | 13.3% | 13.8% | 6.6% | 18.4% | 2.52 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +12.89 | 0.85 | 93.6% | 76.5% | 11.4% | -2.9% |
| 3 Years | +16.42 | 1.16 | 121.9% | 102.8% | 24.4% | 7.8% |
| 5 Years | +17.02 | 1.06 | 113.1% | 93.8% | 24.9% | 7.8% |
| 7 Years | +10.12 | 0.90 | 102.6% | 92.7% | 21.4% | 11.8% |
| 10 Years | +4.06 | 0.92 | 101.0% | 96.2% | 14.5% | 10.8% |
| 12 Years | +2.58 | 0.94 | 99.8% | 96.3% | 12.2% | 9.8% |
| 15 Years | +0.98 | 0.94 | 99.1% | 97.4% | 10.5% | 9.7% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | State Bank of India | 16.66% |
| 2 | GAIL (India) Ltd. | 9.28% |
| 3 | NTPC Ltd. | 9.07% |
| 4 | Power Grid Corporation of India Ltd. | 8.49% |
| 5 | Bharat Electronics Ltd. | 8.24% |
| 6 | Oil & Natural Gas Corporation Ltd. | 5.32% |
| 7 | Bank of Baroda | 5.21% |
| 8 | Bharat Petroleum Corporation Ltd. | 4.64% |
| 9 | Bharat Heavy Electricals Ltd. | 3.96% |
| 10 | NMDC Ltd. | 3.55% |