DSP Banking & Financial Services Fund - Direct - IDCW

DSP Banking & Financial Services Fund - Direct - IDCW holds up reasonably well within the Sectoral category, currently carrying a 3-star rating. It has delivered steady, if unspectacular, returns over a full market cycle. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 70/100.

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 -0.12 — over the past year, returns haven't kept pace with the volatility involved, even before accounting for the risk-free rate. Separately, with 20.44% annualised volatility, this is among the more turbulent funds in its space — expect sharp swings in both directions.

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.