DSP Banking & Financial Services Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

DSP Banking & Financial Services Fund Direct Growth Plan is at ₹15.457 as of 18 September 2026. The fund has an AUM of ₹2,183 Cr, and its 1-year, 3-year and 5-year returns are 12.46%, 0% and 0% respectively. It carries a High Risk label, so it fits investors who can tolerate sharp swings and want exposure to financial-services stocks rather than a broad market mix.

Our view is that the fund’s recent return pattern is mixed: the 1-year number is positive, but the longer-period figures are not yet meaningful because the scheme is still young. The portfolio is concentrated in banks and financials, with a sizeable allocation to ICICI Bank and Axis Bank, so the fund may move differently from a diversified equity fund. That makes it more suitable for investors who can stay invested through uneven periods.

Quick facts

Particular	Details
NAV	₹15.457 as of 18 Sep 2026
AUM	₹2,183 Cr
Expense Ratio	0.61%
Launch Date	08 Dec 2023
Min SIP	₹100
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Equity
Exit Load	0.50% on or before 1M, Nil after 1M
Fund Managers	Preethi R S

The fund is managed by Preethi R S.

Source data date: as of 18 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-2.23%	-3.73%
3M	1.91%	-3.14%
1Y	12.46%	-5.31%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The last month was weak, but the fund still held up better than the benchmark over the same stretch. That matters because the 1-month return was negative even as the benchmark fell more sharply, suggesting some relative resilience in a choppy phase.

The 3-month return turned positive, while the benchmark stayed negative. That gap points to a cleaner short-term recovery in the fund than in the benchmark, even though the path was not smooth across the period.

The 1-year picture is also ahead of the benchmark by a wide margin. The fund’s 12.46% return contrasts with the benchmark’s -5.31%, which tells us the strategy has done materially better over the past year than the broad index used here.

Because the scheme was launched in December 2023, the 3-year and 5-year figures are not available in a meaningful way yet. So the more useful read is on the recent trend: the fund has shown recovery after weakness, but its longer operating history is still too short for a full cycle view.

Source data date: as of 18 Sep 2026

Should you BUY or HOLD DSP Banking & Financial Services?

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.

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Peer comparison

Fund	1Y return	3Y return	5Y return
DSP Banking & Financial Services Fund Direct Growth Plan	12.46%	Data not available	Data not available
ICICI Pru Strategic Metal and Energy Equity FoF Direct Growth Plan	65.43%	35.11%	Data not available
HDFC Pharma and Healthcare Fund Direct Growth Plan	27.29%	Data not available	Data not available
Kotak Healthcare Fund Direct Growth Plan	27.27%	Data not available	Data not available
Motilal Oswal Active Momentum Fund Direct Growth Plan	25.8%	Data not available	Data not available
PGIM India Healthcare Fund Direct Growth Plan	24.4%	Data not available	Data not available

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

On a 1-year basis, this fund trails the stronger figures shown by the peer set, especially the funds in healthcare, momentum and thematic strategies. Its 12.46% return is still positive, but it is clearly more modest than the most aggressive one-year numbers in the comparison list.

The longer-view comparison is limited because the fund itself does not yet have usable 3-year or 5-year figures. That means the peer table tells a different story from the fund’s own 1-year line: several peers have deeper track records, while this scheme is still early in its life.

So the comparison is useful mainly for context. It shows that the fund has participated in the same broad equity environment, but it has not yet built a longer evidence base that can be set against multi-year peer histories.

Source data date: as of 18 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
ICICI Bank Limited	Bank	9.94%
Axis Bank Limited	Bank	7.14%
Cholamandalam Investment and Finance Co Limited	Finance	5.51%
PB Fintech Limited	IT	4.95%
State Bank of India	Bank	4.77%
Shriram Finance Limited	Finance	4.7%
Bajaj Finance Limited	Finance	4.44%
Kotak Mahindra Bank Limited	Bank	4.34%
Max Financial Services Limited	Finance	4.26%
Ujjivan Small Finance Bank Limited	Bank	4.2%

The largest holding, ICICI Bank, accounts for 9.94% of the portfolio, so no single stock dominates the fund outright. The next few positions are also meaningful, but there is a clear step-down after the first name, which suggests the portfolio is led by a handful of large financial-services bets rather than one very large position.

By the tenth holding, the weight is 4.2%, so the gap from the first to the tenth is noticeable but not extreme. That pattern may indicate a fairly focused core, with several mid-sized positions that could influence returns without creating full dependence on one company.

The top 10 holdings together account for approximately 54.25% of the portfolio, and the fund discloses 29 holdings in total. That means the remaining exposure is spread across a longer tail, so the portfolio is not fully concentrated in the visible names even though the largest positions still carry meaningful influence.

To see all holdings, visit the DSP Banking & Financial Services Fund Direct Growth Plan page

Source data date: as of 18 Sep 2026

Who should invest

This fund suits investors who can tolerate High Risk and are comfortable with a concentrated financial-services tilt. The 1-year return is positive, but the scheme is still too young to judge it on a full multi-year cycle, so patience matters.

The main trade-off is between sector-specific upside and portfolio concentration. Investors who want exposure to banks and financials, and who can stay invested through uneven short-term moves, may find the structure more relevant than a broad diversified equity fund. Those who prefer a smoother ride or a longer performance history may want a more mature strategy.

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: 0.50% if units are sold on or before 1 month; nil after 1 month.

Source data date: as of 18 Sep 2026

Frequently asked questions

What is the current NAV of DSP Banking & Financial Services Fund Direct Growth Plan?
The current NAV is ₹15.457 as of 18 September 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
Its 1-year return is 12.46%, while the 3-year and 5-year returns are not available in a meaningful way yet.

How has the fund done versus its benchmark?
Over 1 year, the fund returned 12.46% versus -5.31% for the benchmark. It also stayed ahead over 3 months and 1 month.

How does it compare with the peer funds listed here?
Its 1-year return is lower than the stronger peer figures shown in the comparison table, but the fund’s own multi-year history is still too short for a direct long-cycle comparison.

Is there a minimum SIP amount?
Yes, the minimum SIP amount is ₹100.

Who manages the fund and what is the exit load?
The fund is managed by Preethi R S. The exit load is 0.50% if units are sold on or before 1 month, and nil after 1 month.

Bottom line

This scheme has shown a better recent path than its benchmark, but its multi-year history is still too short to treat the longer-term picture as settled. The peer comparison also suggests that some rival funds have stronger one-year numbers, while this fund remains earlier in its lifecycle. With a High Risk tag and a portfolio anchored in banks and financials, it is best viewed as a focused sector fund for investors who accept volatility and want that specific exposure.

Published on 21 September 2026 at 10:05 AM 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.