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

HDFC Banking & Financial Services Fund Direct Growth Plan has a NAV of ₹18.75 as of 16 September 2026 and a scheme AUM of ₹4,687 Cr. Its 1-year, 3-year and 5-year returns are 4.61%, 10.93% and 11.73% respectively, and it sits in the High Risk category.

Our view is that this is a sector-focused equity fund with a concentrated banking and financial services tilt. The long-term return pattern is steadier than the recent 1-year stretch, but the benchmark comparison and portfolio mix suggest it is best suited to investors who can accept sharp moves in pursuit of sector-led participation.

Quick facts

Particular	Details
NAV	₹18.75 as of 16 Sep 2026
AUM	₹4,687 Cr
Expense Ratio	0.76%
Launch Date	01 Jul 2021
Min SIP	₹100
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Equity
Exit Load	1% on or before 30D, Nil after 30D
Fund Managers	Anand Laddha

The fund is managed by Anand Laddha.

Source data date: as of 16 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-2.92%	-4.41%
3M	-1.65%	-3.60%
1Y	4.61%	-7.76%
3Y	10.93%	5.74%
5Y	11.73%	5.67%

The recent picture is softer than the medium-term trend. Over 1 month and 3 months, the fund stayed negative, but it still declined less than the benchmark in both periods, which tells us the portfolio held up better than the index during short-term weakness.

The 1-year return is much stronger than the benchmark, which moved into negative territory over the same window. That contrast matters because it shows the fund did not simply track market direction; it added value during a period when the benchmark struggled.

The longer horizon is also constructive. At 3 years and 5 years, the fund’s returns remain comfortably ahead of the benchmark, although the gap is less dramatic than in the 1-year period. That suggests the strategy has compounded at a better pace than the benchmark over time, while still being exposed to the ups and downs of a banking-and-financials allocation.

The time pattern points to a fund that can recover after weak patches, but not without interim volatility. For investors, that means the main question is not whether the fund has delivered positive compounding over multiple years, but whether they are comfortable with short stretches of drawdown in a sector-led equity allocation.

Source data date: as of 16 Sep 2026

Should you BUY or HOLD HDFC 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
HDFC Banking & Financial Services Fund Direct Growth Plan	4.61%	10.93%	11.73%
ICICI Pru Strategic Metal and Energy Equity FoF Direct Growth Plan	69.80%	36.32%	Data not available
HDFC Pharma and Healthcare Fund Direct Growth Plan	25.31%	Data not available	Data not available
Kotak Healthcare Fund Direct Growth Plan	25.27%	Data not available	Data not available
Motilal Oswal Active Momentum Fund Direct Growth Plan	24.51%	Data not available	Data not available
PGIM India Healthcare Fund Direct Growth Plan	22.75%	Data not available	Data not available

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

The fund’s 1-year return trails the strongest peer figures shown here, while its own 3-year and 5-year numbers are more balanced rather than explosive. That makes the comparison two-sided: short-term peers have far higher recent momentum, but the current fund shows a more established compounding record over longer periods than peers for whom longer-horizon figures are not available.

In our view, the main takeaway is that the fund looks steadier across multiple years than several of the peer options listed, even if it does not match their recent 1-year pace. Investors comparing only the available return data would see a clear difference between near-term momentum and longer-term consistency.

Source data date: as of 16 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
ICICI Bank Ltd.	Bank	14.38%
HDFC Bank Ltd.£	Bank	12.18%
Kotak Mahindra Bank Limited	Bank	8.17%
Axis Bank Ltd.	Bank	7.76%
State Bank of India	Bank	6.33%
Shriram Finance Ltd.	Finance	4.50%
Bajaj Finance Ltd.	Finance	4.11%
SBI Life Insurance Company Ltd.	Insurance	3.60%
Five-Star Business Finance Limited	Finance	2.61%
AU Small Finance Bank Ltd.	Bank	2.43%

The largest holding, ICICI Bank Ltd., is 14.38%, so it is large enough to have meaningful influence on near-term movement. The next few positions are also sizeable, which means the portfolio starts with a strong bank-heavy core rather than a single dominant stock.

There is a noticeable step-down from the first holding to the tenth holding, from 14.38% to 2.43%. That pattern suggests the fund spreads exposure across several large financial names, but the top end still carries more weight and may shape returns more than the smaller positions.

The top 10 holdings account for approximately 66.07% of the portfolio, and the fund discloses 37 holdings in total. Our reading is that this points to a meaningful concentration in a relatively long tail: the largest positions matter a lot, yet there are enough additional holdings for the portfolio to avoid being purely a top-few-stock bet.

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

Source data date: as of 16 Sep 2026

Who should invest

This fund may suit investors with a high tolerance for equity volatility and a clear willingness to hold through sector cycles. The 1-year result is well ahead of the benchmark, while the 3-year and 5-year figures show a more settled compounding pattern, so the natural fit is a longer investment horizon rather than a short trading view.

The trade-off is straightforward: you are taking concentrated exposure to banking and financial services, which can move sharply in both directions, in exchange for the possibility of stronger multi-year compounding than the broad benchmark. That makes it more suitable for investors who want sector participation and can accept that recent performance may not always match the longer-run trend.

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: 1% if units are sold on or before 30 days; nil after 30 days.

Source data date: as of 16 Sep 2026

Frequently asked questions

What is the current NAV of HDFC Banking & Financial Services Fund Direct Growth Plan?
Its NAV is ₹18.75 as of 16 September 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The returns are 4.61% for 1 year, 10.93% for 3 years and 11.73% for 5 years.

How does the fund compare with its benchmark?
It has outperformed the benchmark across 1 year, 3 years and 5 years. The benchmark return is -7.76% over 1 year, 5.74% over 3 years and 5.67% over 5 years.

How does it compare with the peer funds listed here?
Its 1-year return is lower than the peer funds shown, while its 3-year and 5-year figures are more established than most of those peers because several of them do not have longer-horizon figures available.

What is the fund’s minimum SIP amount?
The minimum SIP amount is ₹100.

What risk profile and exit load should investors note?
The fund is tagged High Risk. The exit load is 1% if units are sold on or before 30 days, and nil after 30 days.

Bottom line

The fund’s recent returns are weaker than its own longer-term pattern, but the 3-year and 5-year numbers still stay ahead of the benchmark. Compared with the peer set shown here, the 1-year figure is modest, while the longer-term record looks more settled. The portfolio is heavily tilted toward banks and financial names, with ICICI Bank Ltd. and HDFC Bank Ltd. leading the list. That concentration can amplify sector moves, so the fund fits investors who are comfortable with High Risk exposure and a multi-year horizon.

Published on 17 September 2026 at 10:36 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.