Sundaram Services Fund
Direct · GrowthAI Summary
Sundaram Services Fund has delivered strong XIRR across horizons, including 20.4% over 3Y and 20.97% over 5Y, both comfortably ahead of the category averages of 16.17% and 17.43% respectively. Against the NIFTY 50, the fund has generated consistent alpha (6.2% to 8.2% across 1Y-7Y) with lump-sum CAGRs of 12.7% (3Y) versus the benchmark's 5.85%. However, the 1Y XIRR of 13.3% and 2026 calendar return of -5.35% indicate recent softness.
Risk-adjusted performance is solid, with alpha ranging from 4.07% to 8.25% across periods and consistently favorable capture ratios (downside capture of 78.8% to 93.9% versus upside capture of 88.8% to 104.3%). The maximum drawdown of just -0.40% with a 33-day duration suggests limited recent stress, though investors should note the recovery took 256 days and there have been 5 drawdown events exceeding 10%. Calmar ratios of roughly 0.50-0.57 across windows indicate reasonable return per unit of drawdown risk.
The 51-stock portfolio is moderately diversified, with the top holding Eternal Ltd at 6.1% and a fairly distributed top 10 (all under 6.2%). Banks (17.0%) and Finance (13.0%) dominate sector allocation, with financials collectively forming a significant concentration, followed by Retailing (8.7%), Telecom (8.0%), and Healthcare Services (7.6%). As a services-themed fund, its holdings span consumer-facing and infrastructure-linked services such as aviation (IndiGo), ports (Adani Ports), and telecom (Bharti Airtel).
The fund outperforms the Sectoral/Thematic category on SIP XIRR at every available horizon, beating the category average by roughly 4-5 percentage points at 3Y (20.4% vs 16.17%) and 5Y (20.97% vs 17.43%). Calendar year returns show strong swings, from 46.34% in 2021 and 29.15% in 2023 to just 3.17% in 2022 and -5.35% in 2026, reflecting sector-theme volatility. Long-term consistency is supported by positive alpha every period from 1Y through 15Y.
This fund suits investors seeking thematic exposure to India's services economy with a high-to-moderate risk tolerance and a 5-7 year horizon, given the volatility evident in calendar year returns. It works best as a satellite allocation of 5-10% of a portfolio alongside a diversified core rather than a sole holding. SIP investors have historically benefited, as shown by XIRRs near 20% over 3-5 year periods.
- SIP XIRR of 20.4% (3Y) and 20.97% (5Y) comfortably exceeds category averages of 16.17% and 17.43%
- Consistent alpha of 4.07% to 8.25% against NIFTY 50 across all periods from 1Y to 15Y
- Lower downside capture than upside capture (downside capture 83.87% vs upside capture 92.42% over 7Y), limiting losses in weak markets
- Recent performance has weakened, with a -5.35% calendar return in 2026 and 1Y XIRR of only 13.3%
- Thematic concentration with 30% in Banks and Finance exposes the fund to financial-sector-specific risk
- High calendar-year return dispersion (from 46.34% in 2021 to 3.17% in 2022) demands a long investment horizon and tolerance for volatility
Generated on 01-11-2026, 3:04 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 | ₹12.95 L | 22.1% | -51.7% | 97.8% |
| 3 Years | ₹36.00 L | ₹48.55 L | 22.4% | 2.5% | 45.1% |
| 5 Years | ₹60.00 L | ₹1.03 Cr | 21.0% | 9.4% | 30.0% |
| 7 Years | ₹84.00 L | ₹1.62 Cr | 19.3% | 15.0% | 22.4% |
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 | 22.1% | 14.3% | 10.6% | +7.8% |
| 3 Years | 22.4% | 11.0% | 16.2% | +11.4% |
| 5 Years | 21.0% | 10.4% | 17.4% | +10.6% |
| 7 Years | 19.3% | 10.6% | 16.6% | +8.7% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 21.4% | 16.6% | -23.9% | 91.2% | 0.70 | 3.55 | 92% | — | — |
| 3 Years | 22.4% | 21.6% | 11.8% | 37.4% | 3.05 | — | 100% | — | — |
| 5 Years | 22.3% | 22.8% | 10.7% | 31.9% | 3.55 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +8.25 | 1.05 | 104.3% | 93.9% | -5.2% | -12.5% |
| 3 Years | +6.82 | 0.96 | 97.3% | 88.0% | 12.7% | 5.8% |
| 5 Years | +6.21 | 0.94 | 94.2% | 86.0% | 11.2% | 4.9% |
| 7 Years | +7.97 | 0.89 | 92.4% | 83.9% | 17.4% | 9.8% |
| 10 Years | +6.79 | 0.86 | 88.8% | 78.8% | 14.1% | 7.5% |
| 12 Years | +5.41 | 0.86 | 88.8% | 78.8% | 11.6% | 6.2% |
| 15 Years | +4.07 | 0.86 | 88.8% | 78.8% | 9.2% | 4.9% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Eternal Ltd (Previously Zomato Ltd) | 6.10% |
| 2 | Bharti Airtel Ltd | 5.06% |
| 3 | Axis Bank Ltd | 4.58% |
| 4 | Interglobe Aviation Ltd | 4.17% |
| 5 | Adani Ports and Special Economic Zone Ltd | 3.92% |
| 6 | Reliance Industries Ltd | 3.84% |
| 7 | Rate Gain Travel Technologies Ltd | 2.90% |
| 8 | ICICI Bank Ltd | 2.85% |
| 9 | Kotak Mahindra Bank Ltd | 2.71% |
| 10 | Apollo Hospitals Enterprise Ltd | 2.69% |