Investment Objective and Approach

The scheme seeks to provide long-term capital appreciation by investing predominantly in equity and equity related instruments of companies engaged in banking and financial services. This fund falls within the thematic/sectoral category and predominantly invests in a majority of large-cap stocks of companies in the banking and financial services sector. The remaining investment is in small and mid-cap stocks in the same sector.

The fund focuses on capitalizing on the growth potential of India's banking and financial services sector. The investment objective of the HDFC Banking and Financial Services Fund Growth Direct Plan is to offer long-term capital appreciation through the investment in the equity of companies involved in the banking/financial services sector.

Key Investment Statistics (as of August 25, 2025):

- Latest NAV: ₹17.87

- AUM: ₹8,65,702 crores

- Fund Performance: 1-year return 9.65%, 3-year return 64.97%, since inception 80.29%

- Minimum SIP Amount: ₹100

- Expense Ratio: 1.9%

- Exit Load: 1% if redeemed within 30 days

Fund Managers

Anand Laddha is the Current Fund Manager of HDFC Banking & Financial Services Fund Direct Growth fund. He has more than 17 years of experience in Indian capital market in equity research, of which 14 years with HDFC Mutual Fund, as Lead - BFSI Analyst Also managing BFSI fund at HDFC mutual fund.

Fund Manager Profile:

- Educational Background: B.Com. and CA

- Fund Manager since June 2021

- Prior Experience: Worked with Refco-Sify Securities India Pvt. Ltd. (AVP - FII Equity & Derivative Sales) and Alchemy Share & Stock Brokers Pvt. Ltd. (Equity & Derivative Sales)

- With an extensive experience of 15 years while managing equity & related investments. He is focused on picking quality companies and holds them for a long duration to generate good compounding returns in their funds.

The fund is also co-managed by Dhruv Muchhal, who has done B.Com, CA and CFA and has worked with Motilal Oswal Financial Services Ltd., Goldman Sachs, CRISIL Global Research & Analytics and Deloitte Haskins & Sells.

About the Fund House (AMC)

HDFC Mutual Fund is one of India's leading asset management companies. HDFC Mutual Fund started as a joint venture between Housing Development Finance Corporation Limited and Standard Life Investments Limited on December 10, 1999. It has Housing Development Finance Corporation Limited and Standard Life Investments Limited as the sponsors. HDFC Trustee Company Limited is the trustee.

Key AMC Details:

- HDFC Asset Management Company Ltd. received approval to act as an AMC from SEBI back on 30 June 2000 under the registration number MF/044/00/6.

- It also offers portfolio management/non-binding investment advisory services since 18 September 2016 under the registration code PM /INP000000506 from SEBI.

- AUM: ₹780,967.38 crores across 206 schemes

- Fund Launch Date: December 10, 1999

HDFC Mutual Fund has established itself as a trusted name in the Indian mutual fund industry, managing a diverse portfolio of schemes across various categories and investment objectives.

Should I Invest in HDFC Banking and Financial Services Fund?

This fund is suitable for investors who meet specific criteria and investment goals:

Ideal for:

- Investors who believe in the growth prospects of the banking and financial services sector and seek exposure to this particular theme. Experienced investors with knowledge about macro trends may be interested in such a scheme too.

- Investors with a high risk appetite

- Those seeking long-term capital appreciation through sectoral exposure

Important Considerations:

- The fund is rated Very High risk

- Warning: Do not invest in this, or any other banking sector fund, if you need to redeem your investment in less than seven years.

- If you do invest, you must do so only through the SIP route.

Tax Implications:

- If you redeem within one year, returns are taxed at 20%. If you redeem after one year, returns exceeding Rs 1.25 lakh in a financial year are taxed at 12.5%.

The fund's sectoral focus makes it more volatile than diversified equity funds, making it suitable only for investors with a thorough understanding of the banking sector and its cyclical nature.

FAQs

What is today's NAV of HDFC Banking and Financial Services Fund?

The latest NAV is ₹17.87 as of August 25, 2025 for the Direct Growth plan. NAV updates daily based on market movements.

What is the AUM of HDFC Banking and Financial Services Fund?

The fund currently has an Asset Under Management (AUM) of ₹8,65,702 crores as of August 2025, making it a substantial sectoral fund.

What is the expense ratio of HDFC Banking and Financial Services Fund?

The expense ratio of this fund is 1.9%, which covers fund management and operational costs charged annually.

What are the returns of HDFC Banking and Financial Services Fund since inception?

The fund has delivered 80.29% returns since inception, with recent performance showing 9.65% in 1 year and 64.97% over 3 years.

What is the minimum SIP amount to invest in HDFC Banking and Financial Services Fund?

The minimum SIP amount is ₹100 with a minimum lumpsum investment also set at ₹100.

How do I invest in HDFC Banking and Financial Services Fund?

You can invest through Allvest platform by completing your KYC, selecting the fund, and making payment via UPI, net banking, or debit card for hassle-free investment.

How to start a SIP in HDFC Banking and Financial Services Fund?

Start your SIP through Allvest by choosing the fund, setting your monthly amount (minimum ₹100), selecting investment date, and authorizing auto-debit from your bank account.

How do I automate an SIP in HDFC Banking and Financial Services Fund?

On Allvest, set up auto-debit authorization during SIP registration. The platform will automatically deduct your SIP amount monthly and invest in the fund.

How can I withdraw/redeem my investment in HDFC Banking and Financial Services Fund?

Log into your Allvest account, navigate to your investments, select the fund, and place a redemption request. Remember, there's a 1% exit load if redeemed within 30 days.