Icici Prudential Banking & Financial Services Fund

Review Date: 21-03-2025

Beginning of Analysis

Icici Prudential Banking & Financial Services Fund is the 6th ranked fund in the Banking and Financial Services Fund category. The category has total 14 funds. The Icici Prudential Banking & Financial Services Fund has shown a very good past performence in Banking and Financial Services Fund category. The fund has a Jensen Alpha of 3.73% which is higher than the category average of 3.41%. Here the fund has shown good performance in terms of risk adjusted returns. The fund has a Sharpe Ratio of 0.53 which is higher than the category average of 0.51.
The past performance of the Icici Prudential Banking & Financial Services Fund may or may not be sustained in the future. The review is not investment advice nor is it a recommendation to buy or sell funds.
Banking and Financial Services Mutual Funds are ideal for aggressive investors seeking high returns by investing in the banking and financial services sector. These funds offer targeted exposure to banks, NBFCs, insurance companies, and other financial institutions, allowing investors to capitalize on the growth potential of this sector. However, they carry higher risks due to their concentrated exposure and are heavily dependent on the performance of the BFSI sector and macroeconomic factors. Investors should have a long-term investment horizon, a high risk tolerance, and a good understanding of the banking and financial services sector before investing in these funds. Additionally, monitoring economic trends and regulatory changes is crucial for success.

Icici Prudential Banking & Financial Services Fund Return Analysis

The fund has given a return of 3.05%, 0.58 and -6.85 in last one, three and six months respectively. In the same period the category average return was 4.75%, -0.88% and -6.93% respectively. The fund has given a return of 14.92% in last one year, 15.78% in last three years, 27.71% in last five years and 13.77% in last ten years. In the same period the category average return was 13.95%, 17.33%, 27.33% and 13.29% respectively. The fund has Very Good performance in last ten years in Banking and Financial Services Fund.

The fund has given a SIP return of 6.93% in last one year. In the same period the category average SIP return was 5.39%. The fund has SIP return of 15.33% in last three years whereas category average SIP return is 16.32%. The category average SIP return is 18.4% and the fund has given a SIP return of 17.75% in last five years.

The benchmark Nifty Financial Services Total Return Index has given a return of 19.82%, 14.27% and 25.15% in last one, three and five years respectively.

Icici Prudential Banking & Financial Services Fund Risk Analysis

The fund has a standard deviation of 12.62 and semi deviation of 8.17. The category average standard deviation is 14.11 and semi deviation is 9.02. The fund has a Value at Risk (VaR) of -12.31 and a maximum drawdown of -9.32. The category average VaR is -14.15 and the maximum drawdown is -10.52. The fund has a beta of 0.85 which shows that fund is less volatile than the benchmark.

Standard deviation measures the fund's return volatility and Semi deviation focuses on downside volatility. Value at Risk (VaR) is a measure of the risk of investments. Maximum Drawdown is the maximum loss from a peak to a trough of a portfolio. Beta measures the volatility of the fund compared to the benchmark. A beta of 1 indicates that the fund will move in line with the benchmark. A beta of more than 1 indicates that the fund will be more volatile than the benchmark and vice versa.