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

SBI Banking & Financial Services Fund Direct Growth Plan has a NAV of ₹48.4171 as of 10 Sep 2026 and a scheme AUM of ₹10,872 Cr. Its 1-year, 3-year and 5-year returns are 2.43%, 15.42% and 12.59%, and it sits in the High Risk category.

Our view is that this is a sector fund with a meaningful banking tilt and a performance profile that is stronger over longer periods than in the recent one-year window. The portfolio is led by large private banks, so returns may depend heavily on how the financial-services cycle and credit conditions evolve.

Quick facts

Particular	Details
NAV	₹48.4171 as of 10 Sep 2026
AUM	₹10,872 Cr
Expense Ratio	0.76%
Launch Date	26 Feb 2015
Min SIP	₹500
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Equity
Exit Load	0.50% on or before 30D, Nil after 30D
Fund Managers	Milind Agrawal

The fund is managed by Milind Agrawal.

Source data date: as of 10 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-2.05%	-4.06%
3M	3.16%	1.37%
1Y	2.43%	-7.31%
3Y	15.42%	6.07%
5Y	12.59%	5.91%

Recent behaviour has been mixed. The fund fell over the one-month period, but the decline was milder than the benchmark’s drop. Over three months, it recovered better than the benchmark, which points to some resilience in the short run even though the category theme can move sharply.

The one-year return remains modest at 2.43%, but it is still above the benchmark’s -7.31%. That gap matters because it shows the fund has handled the last year better than the broad market proxy, even if absolute gains were limited. For investors, that is a sign of relative strength rather than strong absolute momentum.

The longer view is more constructive. The 3-year return of 15.42% and 5-year return of 12.59% both stand well ahead of the benchmark’s 6.07% and 5.91%. That suggests the fund has compounded more effectively across fuller market cycles, and its historical pattern has been noticeably better than the recent one-year stretch.

Our reading is that the fund has not relied on one strong recent phase alone. The long-term trend looks healthier than the last 12 months, so the return profile has been uneven, but the broader compounding record remains stronger than the benchmark on the periods shown.

Source data date: as of 10 Sep 2026

Should you BUY or HOLD SBI 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
SBI Banking & Financial Services Fund Direct Growth Plan	2.43%	15.42%	12.59%
ICICI Pru Strategic Metal and Energy Equity FoF Direct Growth Plan	73.94%	37.12%	Data not available
Motilal Oswal Active Momentum Fund Direct Growth Plan	29.94%	Data not available	Data not available
Kotak Healthcare Fund Direct Growth Plan	29.26%	Data not available	Data not available
HDFC Pharma and Healthcare Fund Direct Growth Plan	28.3%	Data not available	Data not available
SBI Automotive Opportunities Fund Direct Growth Plan	27.13%	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 shown here, the fund’s one-year return is far more modest than the strongest recent numbers, which is common when comparing a banking-focused scheme with more aggressive thematic funds. The longer-term picture is more balanced: its 3-year and 5-year returns are both solid, while several peers have no available 3-year or 5-year figures in this view.

That creates two different stories. In the short run, the fund has lagged the most buoyant peer returns by a wide margin. Over longer horizons, though, the fund’s double-digit compounding suggests steadier delivery than the headline one-year numbers imply. The available data points support a view that recent performance has been softer than the better peer outcomes, while the longer record is still credible.

Source data date: as of 10 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
HDFC Bank Ltd.	Bank	13.48%
ICICI Bank Ltd.	Bank	10.79%
Kotak Mahindra Bank Ltd.	Bank	9.82%
Bajaj Finance Ltd.	Finance	7.52%
TREPS	Cash & Cash Equivalents and Net Assets	6.48%
State Bank of India	Bank	4.87%
HDFC Life Insurance Company Ltd.	Insurance	4.12%
Muthoot Finance Ltd.	Finance	4.09%
One 97 Communications Ltd.	IT	3.40%
Bank of Baroda	Bank	2.94%

The largest holding, HDFC Bank Ltd., accounts for 13.48% of the portfolio, which is large enough to be influential but not so dominant that it defines the entire fund on its own. The next few positions are also sizable, so the portfolio still leans heavily on a small group of financial-services names.

The drop from the first holding to the tenth is noticeable, from 13.48% to 2.94%. That tells us the fund is not evenly spread across all holdings; instead, the top positions carry much more weight than the lower end of the visible list. TREPS also sits among the top holdings, which may provide some cash-like buffer alongside equity exposure.

With the top 10 holdings accounting for approximately 67.51% of the portfolio and 32 holdings disclosed in total, the structure appears fairly concentrated at the top while still leaving room for a longer tail. That concentration may increase the influence of a few banking and finance names on the fund’s day-to-day movement.

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

Source data date: as of 10 Sep 2026

Who should invest

This fund may suit investors who are comfortable with High Risk and can tolerate sector-led volatility. The 1-year return has been relatively subdued, while the 3-year and 5-year numbers are much stronger, so the fund fits better with an investor who can hold through shorter swings and focus on the longer trend.

The main trade-off is between cyclical ups and downs and the possibility of stronger long-term compounding than the recent year suggests. Because the portfolio is concentrated in banks and financial-services names, the fund is more dependent on that theme than a broad diversified equity fund. That makes a longer horizon important, since short stretches can diverge sharply from the longer record.

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 30 days; nil after 30 days.

Source data date: as of 10 Sep 2026

Frequently asked questions

What is the current NAV of SBI Banking & Financial Services Fund Direct Growth Plan?
Its NAV is ₹48.4171 as of 10 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 2.43% over 1 year, 15.42% over 3 years and 12.59% over 5 years.

How does the fund compare with the benchmark?
It has outperformed the benchmark across the periods shown. The 1-year return is 2.43% versus -7.31% for the benchmark, while the 3-year and 5-year returns are also ahead.

How does the fund compare with the peer funds shown here?
Its one-year return is much lower than the strongest peer figures shown, but its longer-term returns remain solid. Several peer entries do not show 3-year or 5-year figures, so the comparison is strongest on the one-year view.

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 Milind Agrawal. The exit load is 0.50% if units are sold on or before 30 days, and nil after 30 days.

Bottom line

The fund’s recent year has been softer than its 3-year and 5-year record, so the short-term and longer-term pictures do not match neatly. It has still stayed ahead of the benchmark across the available periods, and its long-run compounding has been healthier than the latest 12 months suggest. The main portfolio feature is a heavy tilt toward banks and financial-services names, which can help when the theme is strong but can also add volatility. That makes the fund more suitable for investors who can accept High Risk and hold with a longer horizon.

Published on 11 September 2026 at 4:41 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.