SBI Nifty Bank Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

SBI Nifty Bank Index Fund Direct Growth Plan currently has a NAV of ₹11.2035 as of 15 Sep 2026 and an AUM of ₹209 Cr. Its 1-year, 3-year and 5-year returns are 4.06%, 0% and 0%, respectively, and the scheme is tagged as High Risk.

Our view is that this is a focused bank index fund with a short live track record, so the recent return path matters more than any long-term compounding story. The portfolio is concentrated in banks, with several large private and public lenders at the top, which means the fund may behave very differently from a broad market index.

Quick facts

Particular	Details
NAV	₹11.2035 as of 15 Sep 2026
AUM	₹209 Cr
Expense Ratio	0.21%
Launch Date	06 Feb 2025
Min SIP	₹500
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Index Funds
Exit Load	0.25% on or before 15D, Nil after 15D
Fund Managers	Viral Chhadva

The fund is managed by Viral Chhadva.

Source data date: as of 15 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-2.98%	-4.81%
3M	-2.21%	-3.63%
1Y	4.06%	-8.27%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The short-term pattern has been choppy, with both the fund and the benchmark under pressure in the latest month and quarter. Even so, the fund has held up better than the benchmark over those windows, which suggests the bank basket inside the scheme has been relatively resilient compared with the broader market move reflected by the benchmark.

The 1-year return is the clearest positive point. At 4.06%, the fund is ahead of the benchmark’s -8.27% over the same period, so the gap is meaningful rather than marginal. That tells us the fund has absorbed the recent cycle better than the benchmark, even though the path has not been smooth.

We would not read the 3-year and 5-year fields as weak returns in this case, because the scheme was launched only in February 2025 and does not yet have a complete multi-year track record. For a recently launched index fund, the main question is whether short bursts of weakness are offset by decent relative behaviour, and on that count the fund has done better than the benchmark in the periods available.

Overall, the performance picture is more about relative steadiness than outright growth. The fund has not delivered a long compounding record yet, but the available history shows it staying closer to, and often ahead of, the benchmark during recent drawdowns.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD SBI 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 SBI Nifty Bank Index? Thinking of investing now?

Get your portfolio analysed for FREE by SEBI-registered Investment Adviser (RIA) through Univest MF Premium

Peer comparison

Fund	1Y return	3Y return	5Y return
SBI Nifty Bank Index Fund Direct Growth Plan	4.06%	Data not available	Data not available
ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan	32.61%	29.92%	Data not available
Tata Nifty Capital Markets Index Fund Direct Growth Plan	25.91%	Data not available	Data not available
Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan	21.71%	Data not available	Data not available
Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan	20.15%	Data not available	Data not available
ICICI Pru Nifty Pharma Index Fund Direct Growth Plan	18.11%	18.92%	Data not available

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

The current fund’s 1-year return is much lower than the stronger recent numbers shown by the peer set, which is consistent with its bank-focused nature rather than a broader growth-theme exposure. Among peers with available longer windows, the fund does not yet have a comparable 3-year or 5-year record, so the short-term comparison is more informative than the longer-term one.

That also means the story is mixed: the current fund’s recent return is modest, but it has still stayed ahead of the benchmark in the periods that are available. For investors comparing only these figures, the fund looks more defensive than the faster-moving peers, while the peers with available multi-year history show stronger compounding, especially in theme-oriented strategies.

Source data date: as of 15 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
HDFC Bank Ltd.	Bank	17.01%
ICICI Bank Ltd.	Bank	14.85%
State Bank of India	Bank	10.26%
Kotak Mahindra Bank Ltd.	Bank	9.87%
Axis Bank Ltd.	Bank	9.19%
The Federal Bank Ltd.	Bank	7.14%
Indusind Bank Ltd.	Bank	5.44%
AU Small Finance Bank Ltd.	Bank	4.82%
IDFC First Bank Ltd.	Bank	4.67%
Bank of Baroda	Bank	3.47%

The top 10 holdings account for approximately 86.72% of the portfolio.

To see all holdings, visit the SBI Nifty Bank Index Fund Direct Growth Plan page

HDFC Bank Ltd. is the largest holding at 17.01%, so it is likely to have a meaningful influence on day-to-day movement. The weight then steps down through ICICI Bank Ltd. at 14.85% and State Bank of India at 10.26%, which shows that the largest names carry a substantial share of the fund’s behavior.

The fall from the first holding to the tenth is noticeable but not extreme, because every holding in the visible list is still a bank and each contributes a material slice. That means the portfolio is not a one-name bet, but it is also not spread widely across unrelated sectors.

With 14 disclosed holdings and 86.72% of the portfolio in the top 10, the structure is fairly concentrated. In our view, that concentration may help the fund track the banking segment closely, but it also means performance could be more sensitive to shifts in a small set of large banks.

Source data date: as of 15 Sep 2026

Who should invest

This fund suits investors who are comfortable with High Risk exposure and who can tolerate short-term swings in a sector-led portfolio. The available return pattern shows modest recent gains versus a weaker benchmark, but it does not yet offer a long multi-year compounding record.

A longer horizon is more sensible than a short one, because bank-sector performance can move sharply with market sentiment and credit-cycle expectations. The main trade-off is that the fund may track the banking space closely and can benefit when banks lead the market, but it may also lag when the sector loses momentum.

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

0.25% on or before 15D, Nil after 15D.

Source data date: as of 15 Sep 2026

Frequently asked questions

What is the current NAV of SBI Nifty Bank Index Fund Direct Growth Plan?
Its NAV is ₹11.2035 as of 15 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The 1-year return is 4.06%, while the 3-year and 5-year returns are Data not available because the scheme does not yet have a complete long track record.

How does the fund compare with the benchmark?
Over 1 month, 3 months and 1 year, the fund has held up better than the benchmark, including a 1-year return of 4.06% versus -8.27% for the benchmark.

Which peer fund has the strongest 1-year return among the listed peers?
ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan shows the highest listed 1-year return at 32.61%. The peer set also includes several other funds with double-digit 1-year returns.

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

Who manages the fund and what is the exit load?
Viral Chhadva manages the fund. The exit load is 0.25% on or before 15D and nil after 15D.

Bottom line

This fund’s recent numbers are steadier than the benchmark, but it does not yet have a long history to support a multi-year compounding view. In the peer set, its 1-year return trails the stronger recent performers, which is consistent with its more focused bank exposure. The portfolio is concentrated in a handful of large banks, so the scheme is likely to move closely with that sector. For investors who want a concentrated banking allocation and can accept High Risk swings, the fund is best viewed as a sector-specific holding rather than a broad-market core.

Published on 16 September 2026 at 10:25 AM IST

Explore mutual funds with Univest

Review mutual fund data, compare performance and explore fund insights on Univest.

Explore Univest

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.