Bajaj Finserv Banking and Financial Services Fund - Direct - IDCW

Bajaj Finserv Banking and Financial Services Fund - Direct - IDCW sits in the middle of the pack for Sectoral funds. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 59/100.

Cost: At 1.08%, the expense ratio is roughly in line with the Sectoral category average of 1.05% — cost isn't a standout factor either way for this fund.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a negative Sharpe ratio of -0.44 — over the past year, returns haven't kept pace with the volatility involved, even before accounting for the risk-free rate. Separately, annualised volatility of 18.38% is fairly typical for actively managed equity funds.

Who should invest: This fund is best suited to investors whose goals and risk appetite align with a Equity fund. Given the Very High risk rating, this fund is not suited to short-term goals or investors who may need to exit within 2-3 years.