Sundaram Financial Services Opportunities Fund
Direct · GrowthAI Summary
Sundaram Financial Services Opportunities Fund has delivered an XIRR of 17.34% over 3Y and 17.01% over 5Y, beating the NIFTY 50 comfortably with positive alpha across all periods (10Y fund CAGR of 13.30% vs benchmark 10.33%). Against category SIP XIRR averages, the fund outperformed in the 1Y (13.58% vs 10.55%), 3Y (17.34% vs 16.16%), and 7Y (15.56% vs 16.59%) windows, though it slightly lagged the 5Y category average (17.01% vs 17.43%). The 2026 calendar year return of -9.31% reflects a recent phase of weakness in financials.
The fund carries a Beta above 1 across periods (1.12-1.19) with a downside capture of 106.68% over 10Y, meaning it falls slightly more than the NIFTY 50 in down markets but captures more of the upside (109.6%). A max drawdown of -43.22% with 10 drawdown events greater than 10% underscores significant sector-driven volatility. Calmar ratios in the 0.34-0.41 range indicate moderate risk-adjusted returns given the depth of historical drawdowns.
The 27-stock portfolio is heavily weighted towards private and public sector banks, with the top five holdings all banks (ICICI Bank 11.11%, Axis Bank 10.11%, HDFC Bank 8.4%, SBI 7.89%, Kotak Mahindra Bank 5.87%). Sector concentration is extreme, as Banks (62.5%) and Finance (25.1%) together account for nearly 88% of the portfolio. This focused bet on financials amplifies cyclical performance swings relative to diversified equity funds.
Compared to sectoral/thematic peers, the fund's long-term XIRR of 16.43% over 10Y and 15.93% over 12Y sits at or near the category averages of 16.43% and 15.77% respectively. Calendar year records show strong recovery capability, with returns of 35.74% in 2017 and 32.36% in 2023 following weak years, though outcomes are episodic (e.g., -14.47% in 2013). Overall, the fund ranks among the better performers in the financial services thematic category over long horizons.
This fund is suitable for investors with high risk tolerance who want a tactical, concentrated exposure to India's banking and financial services sector, not as a core portfolio holding. A time horizon of at least 5-7 years is advisable, given the deep drawdowns and multi-year cycles visible in calendar returns. Investors should be prepared for sharp underperformance, such as the -9.31% return in 2026, when the financial sector falls out of favor.
- Consistent positive alpha over the NIFTY 50 across all measured periods, including 3.89% over 3Y and 6.13% over 5Y
- Low expense ratio of 0.79% for a sectoral fund in the Direct plan
- Long-term XIRR (17.01% over 5Y) outpacing most category peers, with strong recovery years like 32.36% in 2023
- Extreme concentration risk with 87.6% of the portfolio in Banks and Finance, including a top-5 holding of five banks totaling 43.38%
- High volatility profile: max drawdown of -43.22%, 10 drawdown events above 10%, and downside capture exceeding 100% in most periods
Generated on 03-11-2026, 4:38 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 | ₹13.00 L | 19.6% | -63.2% | 128.8% |
| 3 Years | ₹36.00 L | ₹45.94 L | 15.8% | -21.9% | 30.9% |
| 5 Years | ₹60.00 L | ₹88.71 L | 15.7% | -7.4% | 27.1% |
| 7 Years | ₹84.00 L | ₹1.47 Cr | 15.6% | -0.4% | 22.4% |
| 10 Years | ₹1.20 Cr | ₹2.81 Cr | 16.4% | 13.2% | 19.0% |
| 12 Years | ₹1.44 Cr | ₹3.99 Cr | 15.9% | 13.5% | 17.5% |
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 | 15.8% | 11.0% | 16.2% | +4.8% |
| 5 Years | 15.7% | 10.4% | 17.4% | +5.3% |
| 7 Years | 15.6% | 10.6% | 16.6% | +5.0% |
| 10 Years | 16.4% | 11.4% | 16.4% | +5.0% |
| 12 Years | 15.9% | 11.3% | 15.8% | +4.6% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 17.9% | 14.2% | -32.6% | 95.8% | 0.52 | 1.40 | 82% | — | — |
| 3 Years | 16.0% | 16.3% | -7.0% | 35.7% | 1.31 | 4.75 | 96% | — | — |
| 5 Years | 15.3% | 15.3% | -0.1% | 30.7% | 1.78 | 13.54 | 100% | — | — |
| 10 Years | 15.7% | 15.6% | 12.0% | 19.6% | 5.29 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +8.66 | 1.19 | 116.8% | 106.8% | -5.5% | -10.9% |
| 3 Years | +3.89 | 1.10 | 104.9% | 99.5% | 10.3% | 6.4% |
| 5 Years | +6.13 | 1.07 | 104.8% | 97.4% | 11.2% | 5.2% |
| 7 Years | +3.03 | 1.13 | 110.5% | 107.3% | 13.4% | 10.0% |
| 10 Years | +2.51 | 1.12 | 109.6% | 106.7% | 13.3% | 10.3% |
| 12 Years | +3.73 | 1.12 | 110.2% | 106.1% | 13.1% | 9.0% |
| 15 Years | +1.96 | 1.14 | 112.2% | 110.0% | 11.8% | 9.4% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Ltd | 11.11% |
| 2 | Axis Bank Ltd | 10.11% |
| 3 | HDFC Bank Ltd | 8.40% |
| 4 | State Bank of India | 7.89% |
| 5 | Kotak Mahindra Bank Ltd | 5.87% |
| 6 | Bajaj Finserv Ltd | 4.73% |
| 7 | DCB Bank Ltd | 4.54% |
| 8 | PNB Housing Finance Ltd | 4.38% |
| 9 | Shriram Finance Ltd | 4.09% |
| 10 | Bank of Baroda | 3.83% |