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

ITI Banking & Financial Services Fund Direct Growth Plan had a NAV of ₹17.1012 as of 16 September 2026 and an AUM of ₹388 Cr. Its 1-year, 3-year and 5-year returns are 6.52%, 10.87% and 0% respectively, and the fund sits in the High Risk category. Our view is that it suits investors who can tolerate sharp swings and want focused exposure to banking and financial services, but the recent drift has been uneven rather than consistently strong.

The fund has still held up better than the benchmark in the medium term, but its shorter-term numbers remain choppy. With a concentrated portfolio built around large banks and financials, it may work better as a satellite allocation than as a core low-volatility holding.

Quick facts

Particular	Details
NAV	₹17.1012 as of 16 Sep 2026
AUM	₹388 Cr
Expense Ratio	0.4%
Launch Date	06 Dec 2021
Min SIP	₹500
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Equity
Exit Load	0.50% on or before 3M, NIL after 3M
Fund Managers	Nilay Dalal, Animesh Singh

The fund is managed by Nilay Dalal and Animesh Singh.

Source data date: as of 16 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-3.43%	-4.41%
3M	-1.57%	-3.6%
1Y	6.52%	-7.76%
3Y	10.87%	5.74%
5Y	Data not available	Data not available

The recent picture is mixed, but it is not as weak as the benchmark. Over 1 month and 3 months, the fund was negative, yet the declines were smaller than the benchmark’s. That tells us the strategy has not been immune to pressure, but it has preserved more value than the index during the latest pullback.

Over 1 year, the fund’s return turned positive while the benchmark remained negative. That gap matters because it shows the scheme has recently outperformed a broad market yardstick, even though the journey was uneven. The 3-year figure is also ahead of the benchmark, which supports the idea that the fund has done better than the index across the medium term rather than only in a short burst.

The pattern in the trailing path looks cyclical rather than smooth. We saw a steady climb, a noticeable setback, and then a partial recovery, which is consistent with a fund tied closely to financial-sector sentiment. For investors, that means the return story depends heavily on the banking and financial cycle, and the recent short-term softness should be read alongside the stronger 1-year and 3-year numbers.

Source data date: as of 16 Sep 2026

Should you BUY or HOLD ITI 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
ITI Banking & Financial Services Fund Direct Growth Plan	6.52%	10.87%	Data not available
ICICI Pru Strategic Metal and Energy Equity FoF Direct Growth Plan	69.8%	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 is far below the strongest peer figures shown here, but the comparison is more balanced over the longer horizon that is available. Its 3-year return is ahead of peers where 3-year data exists in this set only for one fund, which means the short-term gap and the medium-term resilience tell different stories. In practical terms, the scheme has not matched the fastest recent peer advances, but it has shown a steadier medium-term profile than its own recent 1-year number alone might suggest.

Source data date: as of 16 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
ICICI Bank Limited	Bank	11.24%
State Bank of India	Bank	7.88%
HDFC Bank Limited	Bank	7.62%
Axis Bank Limited	Bank	7.56%
Bajaj Finance Limited	Finance	7.46%
Kotak Mahindra Bank Limited	Bank	5.43%
Shriram Finance Limited	Finance	5.17%
Cholamandalam Investment and Finance Company Ltd	Finance	3.52%
BSE Limited	Finance	2.97%
Net Receivables / (Payables)	Cash & Cash Equivalents and Net Assets	2.65%

The largest holding, ICICI Bank Limited, is 11.24%, which is large enough to have greater influence on fund movement than any other single position. The next few holdings are also sizeable, with four positions clustered between 7.46% and 7.88%, so the portfolio’s performance may be shaped by a handful of major banking and finance names.

From the first holding to the tenth, the weights ease down rather than fall sharply, but the decline is still noticeable. That pattern suggests a portfolio that is anchored by a small set of core positions and then tapers into smaller bets, instead of being evenly spread across many similarly sized holdings.

The top 10 holdings account for approximately 61.5% of the portfolio, and the fund has 35 disclosed holdings in total. That combination points to meaningful concentration at the top with a longer tail beyond the disclosed leaders, so individual stock movements may matter, even though the portfolio is not a pure one-stock style bet.

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

Source data date: as of 16 Sep 2026

Who should invest

This fund is better suited to investors with a high risk tolerance and a multi-year horizon. The return pattern shows that it can move around in the short term, but it has been ahead of the benchmark across 1-year and 3-year windows.

The main trade-off is clear: investors gain focused exposure to banking and financial services, but they also accept sector concentration and higher volatility than a broader diversified equity fund. It may appeal to those who want a targeted allocation and can stay invested through uneven stretches rather than reacting to each market swing.

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 within 3 months; no exit load after that holding period.

Source data date: as of 16 Sep 2026

Frequently asked questions

What is the current NAV of ITI Banking & Financial Services Fund Direct Growth Plan?
The NAV is ₹17.1012 as of 16 September 2026.

What are the 1-year, 3-year and 5-year returns?
The fund’s 1-year return is 6.52%, its 3-year return is 10.87%, and the 5-year return is Data not available.

How has the fund performed versus the benchmark?
It has done better than the benchmark over 1 year and 3 years, while the benchmark was weaker in both periods. In the latest 1-month and 3-month windows, the fund was also less negative than the benchmark.

How does it compare with the peer funds listed here?
Its 1-year return is well below the strongest peer figures shown here, while its 3-year return is more competitive where comparable data is available. The short-term and medium-term comparisons do not tell the same story.

What is the minimum SIP amount?
The minimum SIP amount is ₹500.

Who manages the fund and what is the exit load?
The fund is managed by Nilay Dalal and Animesh Singh. The exit load is 0.50% if units are sold within 3 months, and there is no exit load after that holding period.

Bottom line

ITI Banking & Financial Services Fund Direct Growth Plan has had a mixed short-term path, but its 1-year and 3-year returns are still ahead of the benchmark. Against the peer set shown here, the recent 1-year figure is modest, yet the medium-term pattern looks more stable than the weakest-looking short-term stretch suggests. The risk profile is High Risk, and the portfolio is clearly concentrated in banks and financials, with ICICI Bank Limited as the largest holding. It is most relevant for investors who can accept sector-led volatility in exchange for focused exposure.

Published on 17 September 2026 at 12:42 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.