Mahindra Manulife Banking & Financial Services Fund - Direct - IDCW

Mahindra Manulife Banking & 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 57/100.

Cost: At 1.15%, the expense ratio runs 10% above the Sectoral category average of 1.05%. That gap is worth weighing against the fund's actual performance versus cheaper peers before committing to a long SIP.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a modest Sharpe ratio of 0.31 — returns have only marginally compensated for the risk taken. Separately, annualised volatility of 17.3% 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.