Tata Banking and Financial Services Fund
Direct · GrowthAI Summary
Tata Banking and Financial Services Fund has delivered a 10Y SIP XIRR of 15.18% and 5Y XIRR of 16.48%, beating the NIFTY 50 across most periods with positive alpha ranging from 2.27% (7Y) to 8.53% (1Y). Its 1Y XIRR of 11.97% and 3Y XIRR of 16.29% exceed the category averages of 10.65% and 16.23% respectively, though the 5Y XIRR of 16.48% trails the category average of 17.46%. The fund's lump-sum CAGR also outpaced the benchmark in every window, with a 10Y CAGR of 13.98% versus 10.21% for the NIFTY 50.
The fund shows a beta above 1 across all periods (1.02 to 1.12), indicating higher volatility than the NIFTY 50, and its 1Y downside capture of 101.33% means it fell slightly more than the benchmark in down markets. There have been 11 drawdown events exceeding 10%, with the maximum drawdown taking 268 days to recover, reflecting the cyclical nature of the financial sector. Calmar ratios between 0.37 and 0.44 across periods suggest moderate risk-adjusted returns, with the 1Y Calmar of 0.4351 being the strongest.
The portfolio is heavily concentrated in banks at 48.6%, with ICICI Bank (10.41%), HDFC Bank (9.89%), Axis Bank (9.21%), and SBI (9.17%) as the top four holdings, together representing nearly 39% of NAV. Capital Markets (14.6%), Insurance (13.5%), and Finance (11.7%) provide some breadth, while PB Fintech (4.15%) adds a fintech growth angle. With only 25 total holdings, the fund is a focused sectoral bet rather than a diversified equity option.
The fund outperforms the category average SIP XIRR in the 1Y (11.97% vs 10.65%) and 3Y (16.29% vs 16.23%) windows, but lags in the 5Y (16.48% vs 17.46%) and 7Y (16.44% vs 16.62%) periods. Calendar year returns show strong upside years such as 47.09% in 2017 and 26.85% in 2019, but also weak years like 0.1% in 2015 and -6.84% in 2026, indicating performance tied to financial sector cycles. Overall, it sits in the upper-middle tier of its sectoral peer group over longer horizons.
This fund is suitable for investors with high risk tolerance who want targeted exposure to India's banking and financial services sector and already hold diversified core equity funds. A time horizon of at least 5 to 7 years is advisable, given the sector's cyclicality and the fund's history of extended drawdown recoveries. Investors should be comfortable with concentration risk, as nearly half the portfolio is in banks and returns can deviate sharply from broad market indices.
- Consistent positive alpha over the NIFTY 50 across all measured periods, from 2.27% (7Y) to 8.53% (1Y)
- Strong SIP XIRR of 16.29% over 3Y and 16.48% over 5Y, outperforming the category average in the 1Y and 3Y windows
- Low expense ratio of 0.56% for a sectoral fund, keeping costs competitive
- Heavy concentration in banks at 48.6% of the portfolio, with the top four holdings alone at nearly 39% of NAV
- Downside capture above 100% in the 1Y (101.33%) and 7Y (102.22%) periods, meaning the fund has fallen slightly more than the benchmark in weak markets
Generated on 24-10-2026, 3:21 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 | ₹13.02 L | 18.6% | -60.9% | 114.6% |
| 3 Years | ₹36.00 L | ₹45.78 L | 15.4% | -19.2% | 29.3% |
| 5 Years | ₹60.00 L | ₹90.73 L | 16.5% | 6.3% | 24.0% |
| 7 Years | ₹84.00 L | ₹1.49 Cr | 16.4% | 12.1% | 20.1% |
| 10 Years | ₹1.20 Cr | ₹2.59 Cr | 15.3% | 12.6% | 17.4% |
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 | 18.6% | 14.3% | 10.6% | +4.3% |
| 3 Years | 15.4% | 11.0% | 16.2% | +4.3% |
| 5 Years | 16.5% | 10.4% | 17.4% | +6.1% |
| 7 Years | 16.4% | 10.6% | 16.6% | +5.9% |
| 10 Years | 15.3% | 11.4% | 16.4% | +3.9% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 18.1% | 16.6% | -29.3% | 87.9% | 0.62 | 1.76 | 85% | — | — |
| 3 Years | 15.8% | 16.1% | -2.2% | 30.7% | 1.41 | 5.81 | 98% | — | — |
| 5 Years | 15.9% | 15.7% | 7.6% | 27.2% | 2.39 | — | 100% | — | — |
| 10 Years | 16.4% | 16.3% | 13.5% | 19.9% | 6.23 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +6.32 | 1.13 | 111.6% | 103.8% | -8.8% | -12.7% |
| 3 Years | +4.51 | 1.02 | 100.2% | 94.3% | 9.9% | 5.4% |
| 5 Years | +4.52 | 1.02 | 101.6% | 95.3% | 9.0% | 4.5% |
| 7 Years | +1.89 | 1.07 | 105.2% | 102.8% | 12.1% | 10.0% |
| 10 Years | +3.26 | 1.07 | 105.2% | 101.2% | 13.5% | 10.0% |
| 12 Years | +4.57 | 1.06 | 105.1% | 99.1% | 13.9% | 9.2% |
| 15 Years | +3.66 | 1.06 | 105.1% | 99.1% | 11.0% | 7.3% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI BANK LTD | 10.41% |
| 2 | HDFC BANK LTD | 9.89% |
| 3 | AXIS BANK LTD | 9.21% |
| 4 | STATE BANK OF INDIA | 9.17% |
| 5 | SHRIRAM FINANCE LTD | 4.81% |
| 6 | HDFC ASSET MANAGEMENT COMPANY LTD | 4.57% |
| 7 | KOTAK MAHINDRA BANK LTD | 4.25% |
| 8 | PB FINTECH LTD | 4.15% |
| 9 | PNB HOUSING FINANCE LTD | 3.76% |
| 10 | SBI LIFE INSURANCE COMPANY LTD | 3.74% |