DSP Nifty Bank Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 11, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
DSP Nifty Bank Index Fund Direct Growth Plan closed at ₹11.6485 as of 10 Sep 2026, with scheme assets of ₹63 Cr. Its 1-year, 3-year and 5-year returns are 3.9%, 0% and 0%, and the risk label is High Risk. Our view is that this is a focused bank-sector index fund with modest recent return momentum, but its short history and sector concentration mean it suits investors who can accept sharp swings in exchange for pure banking exposure.
The fund is direct-growth, has no exit load, and is built around the Nifty 50 as the benchmark reference in the facts available here. That makes it more of a tactical satellite holding than a broad core equity allocation, especially because the portfolio is heavily tilted toward large private and public banks.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹11.6485 as of 10 Sep 2026 |
| AUM | ₹63 Cr |
| Expense Ratio | 0.2% |
| Launch Date | 31 May 2024 |
| Min SIP | ₹100 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Index Funds |
| Exit Load | No exit load |
| Fund Managers | Anil Ghelani, Diipesh Shah, Neha Rathi |
The fund is managed by Anil Ghelani, Diipesh Shah and Neha Rathi.
Source data date: as of 10 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -1.69% | -4.06% |
| 3M | 2.77% | 1.37% |
| 1Y | 3.9% | -7.31% |
| 3Y | Data not available | Data not available |
| 5Y | Data not available | Data not available |
Recent behaviour has been mixed but constructive. Over one month, the fund finished lower, yet it still held up better than the benchmark, which fell more sharply. Over three months, the fund recovered faster than the benchmark and stayed in positive territory, which suggests the banking exposure has been relatively resilient in the latest stretch.
The one-year picture is also better than the benchmark. The fund’s 3.9% return compares with a -7.31% benchmark return, so the scheme has preserved value much better over the latest 12 months. That said, the available history is still short because the fund launched in May 2024, so the longer arc is best read as a limited record rather than a full market cycle.
We think the main take-away is that the fund has shown stronger recent navigation than the benchmark, but its path is still sensitive to banking-sector moves. The short-term pattern improved after a weak month, yet the absence of 3-year and 5-year return histories means investors should place more weight on the portfolio structure and on how comfortable they are with bank-heavy market exposure.
Source data date: as of 10 Sep 2026
Should you BUY or HOLD DSP Nifty Bank Index?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding DSP Nifty Bank Index? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| DSP Nifty Bank Index Fund Direct Growth Plan | 3.9% | Data not available | Data not available |
| ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan | 33.08% | 30.07% | Data not available |
| Motilal Oswal Nifty India Defence Index Fund Direct Growth Plan | 26.95% | Data not available | Data not available |
| Aditya Birla SL Nifty India Defence Index Fund Direct Growth Plan | 26.94% | Data not available | Data not available |
| Tata Nifty Capital Markets Index Fund Direct Growth Plan | 24.33% | Data not available | Data not available |
| Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan | 23.74% | Data not available | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
Against the peer set, the fund’s 1-year return is far lower than the other available figures. That does not automatically make it unsuitable, because the comparison set includes different themes, but it does show that the recent return profile is comparatively subdued. The longer-horizon peer columns are largely unavailable for the thematic peers, so the most useful comparison is the one-year number.
On the limited longer-horizon data that is available, the fund also trails ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan by a wide margin on both 1-year and 3-year numbers. The short-term and longer-term peer pictures therefore point in the same direction: this fund has not matched the stronger return profiles seen elsewhere in the listed group. For an investor, that means the case for the fund rests more on thematic bank exposure than on return leadership.
Source data date: as of 10 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| HDFC Bank Ltd | Bank | 18.06% |
| ICICI Bank Ltd | Bank | 14.74% |
| State Bank of India | Bank | 10.01% |
| Kotak Mahindra Bank Ltd | Bank | 9.24% |
| Axis Bank Ltd | Bank | 8.74% |
| Federal Bank Ltd | Bank | 7.23% |
| Indusind Bank Ltd | Bank | 5.45% |
| AU Small Finance Bank Ltd | Bank | 4.67% |
| IDFC First Bank Ltd | Bank | 4.63% |
| Bank of Baroda | Bank | 3.55% |
The top 10 holdings account for approximately 86.32% of the portfolio.
To see all holdings, visit the DSP Nifty Bank Index Fund Direct Growth Plan page
The largest holding, HDFC Bank Ltd, is 18.06%, so it can have a meaningful influence on how the fund behaves day to day. The next four holdings are also sizable, and the drop from the first holding to the tenth is to 3.55%, which shows a clear tapering but not a very long tail among the largest positions.
Because the top 10 alone make up 86.32% of the portfolio and the table already shows 10 of the 15 disclosed holdings, the fund looks quite concentrated within large bank names. That concentration may keep the portfolio closely tied to moves in the banking segment, while the remaining holdings could still matter, but likely with less influence than the leading positions.
Source data date: as of 10 Sep 2026
Who should invest
This fund may suit investors who are comfortable with High Risk exposure and want a narrow banking-sector allocation rather than a broad-market fund. The return pattern shows a better short-term stretch than the benchmark, but the history is short and the peer set shows stronger one-year numbers elsewhere, so expectations should stay measured.
A longer investment horizon is more sensible here because bank-sector index funds can move unevenly over shorter periods. The main trade-off is that you get focused exposure to leading banks and low expense ratio structure, but you also accept concentration in one sector and the possibility that performance will lag stronger thematic peers.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
Exit load: No exit load.
Source data date: as of 10 Sep 2026
Frequently asked questions
What is the current NAV of DSP Nifty Bank Index Fund Direct Growth Plan?
The current NAV is ₹11.6485 as of 10 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year return is 3.9%, while the 3-year and 5-year returns are both 0 in the record available here. The short history reflects that the scheme launched in May 2024.
How does the fund compare with its benchmark?
At 1 year, the fund at 3.9% is ahead of the benchmark’s -7.31%. Over 3 months, it also held up better than the benchmark, and over 1 month it fell less than the benchmark.
How does it compare with the peer funds listed here?
Its 1-year return is lower than the other listed peers in this comparison set. The only peer with a 3-year figure shown is ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan, and that figure is much stronger than this fund’s 1-year return.
What is the minimum SIP amount?
The minimum SIP amount is ₹100.
What is the risk label and who manages the fund?
The risk label is High Risk. The fund is managed by Anil Ghelani, Diipesh Shah and Neha Rathi, and it has no exit load.
Bottom line
This is a focused bank-sector index fund with a short track record, a High Risk label and a concentrated top-holding profile. Recent performance has been better than the benchmark, but the peer set shows stronger return numbers elsewhere and the longer-horizon record here is still limited. For investors who want targeted exposure to major banks and are comfortable with sector-specific swings, the fund may have a place. For those seeking steadier, broader equity participation, the concentration may matter more than the modest recent gains.
Published on 11 September 2026 at 1:36 PM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.