This SBI Mutual Fund Turns 10! See How Much Rs 10,000 SIP Grew

SBI Banking & Financial Services Fund marked its 10-year anniversary on February 26, 2025. This is an open-ended equity scheme that primarily invests in the banking and financial services sector. The fund is mandated to allocate at least 80 per cent of its assets to stocks of banks and financial services companies, making it a sectoral fund focused on one of the key drivers of the Indian economy.

Performance Since Inception

Since its launch on February 26, 2015, the fund has delivered strong returns. According to SBI Mutual Fund, the scheme has generated:

• 14.94 per cent return (Direct Plan)
• 13.73 per cent return (Regular Plan)

An initial lump sum investment of Rs 1 lakh at inception would have grown to Rs 4.03 lakh (Direct Plan) and Rs 3.62 lakh (Regular Plan) as of February 26, 2025.

The scheme has provided point-to-point CAGR returns of 15.32 per cent since its inception. Over various time periods, the returns have been:

• 5 years - 14.26 per cent
• 3 years - 15.71 per cent
• 1 year - 14.82 per cent

During the same period, the scheme's benchmark, Nifty Financial Services TRI, generated returns of:

• 5 years - 12.62 per cent
• 3 years - 10.94 per cent
• 1 year - 14.38 per cent

SIP Returns

For investors who opted for a Systematic Investment Plan (SIP), the scheme has delivered impressive returns. A monthly SIP of Rs 10,000 (total investment of Rs 12 lakh since inception) would have grown to Rs 27.67 lakh as of February 26, 2025, translating to a CAGR of 15.98 per cent.

Fund Details

• Category: Very High Risk
• Net Asset Value (NAV) as of Feb 28, 2025: Rs 39.91
• Fund Size: Rs 6,556.02 crore
• Minimum SIP Amount: Rs 500
• Expense Ratio: 0.74 per cent
• Exit Load: 0.50 per cent if redeemed within 30 days
• Fund Manager: Pradeep Kesavan (since December 2023)
• Investment Objective: The scheme seeks to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of companies engaged in banking and financial services. There is no fixed minimum or maximum period for investment.
• Benchmark: Nifty Financial Services Total Return Index

Portfolio Composition

The fund maintains a diversified portfolio, with 52 per cent allocation in large-cap stocks. Its major holdings include:

• Banks: Axis Bank, HDFC Bank, SBI, among others
• Non-Banking Financial Companies (NBFCs): Bajaj Finance, Muthoot Finance, etc.
• Insurance Companies: ICICI Lombard, HDFC Life, etc.
• Housing Finance Companies
• Asset Management Companies (AMCs)

SBI Banking & Financial Services Fund has consistently delivered strong returns over the past decade, outperforming its benchmark in most time frames. However, being a sectoral fund, it carries high risk and is best suited for investors with a long-term investment horizon and a high-risk appetite. Investors should consider their financial goals before investing in this fund.