UTI Banking and Financial Services Fund
Direct · GrowthAI Summary
UTI Banking and Financial Services Fund has delivered consistent alpha over the NIFTY 50, with 3Y lump-sum CAGR of 11.97% versus the benchmark's 6.4% and a 5Y CAGR of 9.35% versus 5.16%. Its SIP XIRR of 14.86% over 3 years and 12.72% over 10 years trails the category averages of 16.17% and 16.43% respectively, indicating weaker SIP-based outcomes relative to sectoral peers despite beating the broad market. The 1Y XIRR of 11.86% does outpace the category average of 10.56%.
The fund's beta of 1.07 to 1.19 across windows shows sensitivity slightly above the market, and 1Y downside capture of 105.16% indicates it falls somewhat more than the NIFTY 50 in weak periods. There have been 12 drawdown events exceeding 10%, with the current max drawdown of -0.49% taking 316 days to recover from an 81-day decline, reflecting the sector's cyclical nature. Positive alpha across most windows (7.96% at 1Y, 5.58% at 3Y) suggests the added risk has been rewarded over medium horizons, though 10Y alpha of -0.75% shows this is not guaranteed.
Detailed holdings data is not provided, but as a sectoral fund it invests in banking and financial services stocks, making it inherently concentrated in a single sector with limited diversification. Bank and financial stocks typically carry significant weight from large private banks, NBFCs, and financial service companies, so performance is closely tied to interest rate cycles, credit growth, and asset quality trends.
Against sectoral peers, the fund's SIP returns lag meaningfully — its 5Y XIRR of 13.48% versus the category average of 17.43% — though the current 1Y XIRR of 11.86% is ahead of peers at 10.56%. Calendar year returns show wide dispersion, from 65.44% in 2014 to -14.88% in 2013, which is typical for a sector fund but demands patience. The fund's ability to beat NIFTY 50 in 3Y and 5Y lump-sum terms suggests capable stock selection even when SIP outcomes trail the category.
This fund is suitable for investors who already hold diversified core funds and want tactical, satellite exposure to the banking and financial sector with a high risk tolerance. A time horizon of at least 5 to 7 years is advisable given the sector's cyclicality and the fund's history of double-digit drawdowns. Investors should be comfortable with calendar-year swings such as -14.88% in 2013 and 65.44% in 2014.
- Positive alpha versus NIFTY 50 across 1Y (7.96%), 3Y (5.58%), and 5Y (4.28%) windows, with 3Y fund CAGR of 11.97% versus the benchmark's 6.4%
- Lower downside capture than upside capture over 3Y (97.34% vs 104.58%) and 5Y (98.25% vs 103.64%), indicating asymmetry favoring investors
- Long 12-year track record with 12Y SIP XIRR of 12.94% and only a 1.09% expense ratio in the direct plan
- SIP XIRR trails the category average across all long-term windows — for example 5Y XIRR of 13.48% versus 17.43% for peers
- Sector concentration exposes investors to banking cycles, with 12 drawdown events exceeding 10% and calendar-year losses as deep as -14.88% in 2013
Generated on 02-11-2026, 3:35 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 | ₹12.86 L | 17.9% | -73.6% | 135.6% |
| 3 Years | ₹36.00 L | ₹45.35 L | 13.4% | -33.8% | 28.0% |
| 5 Years | ₹60.00 L | ₹82.13 L | 12.4% | -15.1% | 24.3% |
| 7 Years | ₹84.00 L | ₹1.28 Cr | 11.4% | -5.7% | 17.5% |
| 10 Years | ₹1.20 Cr | ₹2.30 Cr | 12.7% | 9.9% | 14.8% |
| 12 Years | ₹1.44 Cr | ₹3.29 Cr | 12.9% | 10.7% | 14.6% |
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 | 17.9% | 14.3% | 10.5% | +3.6% |
| 3 Years | 13.4% | 11.0% | 16.2% | +2.4% |
| 5 Years | 12.4% | 10.4% | 17.4% | +2.0% |
| 7 Years | 11.4% | 10.6% | 16.6% | +0.9% |
| 10 Years | 12.7% | 11.4% | 16.4% | +1.3% |
| 12 Years | 12.9% | 11.3% | 15.8% | +1.6% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 16.0% | 13.4% | -46.1% | 100.9% | 0.40 | 0.90 | 79% | — | — |
| 3 Years | 13.3% | 14.4% | -13.6% | 34.8% | 0.79 | 1.72 | 93% | — | — |
| 5 Years | 12.2% | 11.7% | -3.4% | 29.1% | 0.97 | 3.89 | 98% | — | — |
| 10 Years | 12.8% | 12.7% | 9.2% | 16.6% | 3.95 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +6.63 | 1.13 | 113.7% | 105.1% | -4.4% | -9.0% |
| 3 Years | +5.17 | 1.07 | 104.4% | 97.5% | 12.2% | 7.0% |
| 5 Years | +3.92 | 1.06 | 103.5% | 98.3% | 9.4% | 5.5% |
| 7 Years | +0.14 | 1.15 | 111.6% | 111.2% | 10.8% | 10.1% |
| 10 Years | -0.88 | 1.16 | 112.2% | 113.0% | 10.4% | 10.7% |
| 12 Years | +1.21 | 1.16 | 113.0% | 111.7% | 10.6% | 9.0% |
| 15 Years | +0.16 | 1.19 | 116.1% | 116.3% | 10.2% | 9.5% |