Sundaram Services Fund

Direct · Growth

AI Summary

Performance

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

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.

Portfolio

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).

Category Positioning

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.

Investor Suitability

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.

₹37.73
30 Oct 2026
NAV
22.4%
3Y CAGR
22.3%
5Y CAGR
21.2%
Weighted CAGR
?
3.55
Sharpe
-39.6%
Max Drawdown
?
0.69%
TER

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% — —

-39.6%
Max Drawdown
1 mo
Drawdown Duration
9 mo
Recovery Time
-4.7%
Avg Drawdown

Calmar Ratio by Duration

0.54
1Y
0.57
3Y
0.56
5Y
0.50
7Y

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%

51
Total Holdings
38.8%
Top 10 Weight
18
Sectors
# 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%