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5 Best Financial Sector Mutual Funds to Invest In 2025 | Fincash.com

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Best Financial Mutual Funds 2025

Updated on June 5, 2025 , 15835 views

A financial Mutual Funds are a part of sector Equity Funds. These funds are also known as ‘Banking & Financial Services Fund’. The aim of these funds is to generate Income by Investing in stocks/shares of companies that cater to the banking sector and financial Industry. So, let’s understand the future potential of financial funds, along with the best financial mutual funds to invest.

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Financial Mutual Funds in India

If we look at the July 2017 data released by SEBI, banking and sector funds were the most favored ones. The data shows that Bank and finance- the two leading sectors has shown a sharp surge in share AUM.

SEBIbanksandfinancedata

As per the Jul’17 statistics, the AUM of the banking sector, which is the leading sector, has moved from 20.9 percent to 22.6 percent in just six months.

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Top Performing Best Financial Mutual Funds FY 25 - 26

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)
ICICI Prudential Banking and Financial Services Fund Growth ₹134.49
↑ 1.79
₹9,37515.57.920.619.624.411.6
Aditya Birla Sun Life Banking And Financial Services Fund Growth ₹61.43
↑ 1.43
₹3,43917.46.317.520.624.98.7
Invesco India Financial Services Fund Growth ₹138.74
↑ 2.51
₹1,30820421.725.424.619.8
UTI Banking and Financial Services Fund Growth ₹191.258
↑ 3.63
₹1,264177.219.921.123.911.1
Sundaram Financial Services Opportunities Fund Growth ₹105.78
↑ 2.22
₹1,52416.16.414.324.125.37.1
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Jun 25

When we speak about the banking and finance sector of India, we have many major players like ICICI Bank Ltd, HDFC Bank Ltd, State Bank of India, Yes Bank Ltd, Axis Bank Ltd, etc. The Indian banking system consists of 26 private sector banks, 27 public sector banks, 1,574 urban cooperative banks, 56 regional rural banks, 46 foreign banks and 93,913 rural cooperative banks in addition to cooperative credit institutions.

Companies that operate within the banking and financial industry are highly regulated. Many good companies aim to deliver consistent performance and returns over the years, as a result, it brings in confidence for investors who are planning to invest in sector funds. However, one should always keep in mind the risk factors of such funds. These funds, sometime, can be at two extremes, they can deliver good returns and can sometimes perform badly too. Therefore, it is advisable that investors who are planning to invest in such sector funds should have a high-risk appetite and also should stay invested for a longer duration. Ideally, one should invest in such funds for diversification purpose.

1. ICICI Prudential Banking and Financial Services Fund

ICICI Prudential Banking and Financial Services Fund is an Open-ended equity scheme that seeks to generate long-term capital appreciation to unitholders from a portfolio that is invested predominantly in equity and equity related securities of companies engaged in banking and financial services. However, there can be no assurance that the investment objective of the Scheme will be realized.

ICICI Prudential Banking and Financial Services Fund is a Equity - Sectoral fund was launched on 22 Aug 08. It is a fund with High risk and has given a CAGR/Annualized return of 16.7% since its launch.  Return for 2024 was 11.6% , 2023 was 17.9% and 2022 was 11.9% .

Below is the key information for ICICI Prudential Banking and Financial Services Fund

ICICI Prudential Banking and Financial Services Fund
Growth
Launch Date 22 Aug 08
NAV (06 Jun 25) ₹134.49 ↑ 1.79   (1.35 %)
Net Assets (Cr) ₹9,375 on 30 Apr 25
Category Equity - Sectoral
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk High
Expense Ratio 1.98
Sharpe Ratio 0.75
Information Ratio -0.05
Alpha Ratio -2.44
Min Investment 5,000
Min SIP Investment 100
Exit Load 0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹19,209
31 May 22₹18,963
31 May 23₹22,595
31 May 24₹26,342
31 May 25₹31,859

ICICI Prudential Banking and Financial Services Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹556,833.
Net Profit of ₹256,833
Invest Now

Returns for ICICI Prudential Banking and Financial Services Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25

DurationReturns
1 Month 4.7%
3 Month 15.5%
6 Month 7.9%
1 Year 20.6%
3 Year 19.6%
5 Year 24.4%
10 Year
15 Year
Since launch 16.7%
Historical performance (Yearly) on absolute basis
YearReturns
2024 11.6%
2023 17.9%
2022 11.9%
2021 23.5%
2020 -5.5%
2019 14.5%
2018 -0.4%
2017 45.1%
2016 21.1%
2015 -7.2%
Fund Manager information for ICICI Prudential Banking and Financial Services Fund
NameSinceTenure
Roshan Chutkey29 Jan 187.34 Yr.
Sharmila D’mello30 Jun 222.92 Yr.

Data below for ICICI Prudential Banking and Financial Services Fund as on 30 Apr 25

Equity Sector Allocation
SectorValue
Financial Services89.22%
Industrials0.26%
Technology0.06%
Asset Allocation
Asset ClassValue
Cash10.35%
Equity89.65%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 08 | ICICIBANK
20%₹1,907 Cr13,361,620
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 08 | HDFCBANK
16%₹1,456 Cr7,561,051
↓ -1,790,076
Axis Bank Ltd (Financial Services)
Equity, Since 28 Feb 19 | 532215
9%₹852 Cr7,188,596
State Bank of India (Financial Services)
Equity, Since 31 Oct 08 | SBIN
8%₹748 Cr9,489,675
↑ 1,244,761
SBI Life Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 17 | SBILIFE
5%₹508 Cr2,875,302
↓ -157,500
HDFC Life Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 23 | HDFCLIFE
4%₹391 Cr5,262,946
↓ -160,600
IndusInd Bank Ltd (Financial Services)
Equity, Since 30 Apr 24 | INDUSINDBK
4%₹363 Cr4,331,593
ICICI Lombard General Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 19 | ICICIGI
3%₹298 Cr1,586,237
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | KOTAKBANK
3%₹259 Cr1,171,184
Max Financial Services Ltd (Financial Services)
Equity, Since 31 Aug 19 | 500271
3%₹248 Cr1,902,703
↑ 205,306

2. Aditya Birla Sun Life Banking And Financial Services Fund

The primary investment objective of the Scheme is to generate long-term capital appreciation to unit holders from a portfolio that is invested predominantly in equity and equity related securities of companies engaged in banking and financial services. The Scheme does not guarantee/indicate any returns. There can be no assurance that the schemes’ objectives will be achieved.

Aditya Birla Sun Life Banking And Financial Services Fund is a Equity - Sectoral fund was launched on 14 Dec 13. It is a fund with High risk and has given a CAGR/Annualized return of 17.1% since its launch.  Ranked 3 in Sectoral category.  Return for 2024 was 8.7% , 2023 was 21.7% and 2022 was 11.5% .

Below is the key information for Aditya Birla Sun Life Banking And Financial Services Fund

Aditya Birla Sun Life Banking And Financial Services Fund
Growth
Launch Date 14 Dec 13
NAV (06 Jun 25) ₹61.43 ↑ 1.43   (2.38 %)
Net Assets (Cr) ₹3,439 on 30 Apr 25
Category Equity - Sectoral
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk High
Expense Ratio 1.99
Sharpe Ratio 0.27
Information Ratio -0.03
Alpha Ratio -10.63
Min Investment 1,000
Min SIP Investment 1,000
Exit Load 0-365 Days (1%),365 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹19,183
31 May 22₹18,820
31 May 23₹22,963
31 May 24₹27,704
31 May 25₹32,040

Aditya Birla Sun Life Banking And Financial Services Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹556,833.
Net Profit of ₹256,833
Invest Now

Returns for Aditya Birla Sun Life Banking And Financial Services Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25

DurationReturns
1 Month 5.5%
3 Month 17.4%
6 Month 6.3%
1 Year 17.5%
3 Year 20.6%
5 Year 24.9%
10 Year
15 Year
Since launch 17.1%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8.7%
2023 21.7%
2022 11.5%
2021 16.8%
2020 1.1%
2019 14.9%
2018 -2.4%
2017 47.6%
2016 15.7%
2015 -0.5%
Fund Manager information for Aditya Birla Sun Life Banking And Financial Services Fund
NameSinceTenure
Dhaval Gala26 Aug 159.77 Yr.
Dhaval Joshi21 Nov 222.53 Yr.

Data below for Aditya Birla Sun Life Banking And Financial Services Fund as on 30 Apr 25

Equity Sector Allocation
SectorValue
Financial Services93.65%
Technology1.19%
Asset Allocation
Asset ClassValue
Cash5.03%
Equity94.97%
Other0%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | ICICIBANK
21%₹713 Cr4,993,129
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | HDFCBANK
19%₹642 Cr3,336,948
Axis Bank Ltd (Financial Services)
Equity, Since 31 Oct 18 | 532215
7%₹228 Cr1,927,100
Bajaj Finance Ltd (Financial Services)
Equity, Since 30 Sep 16 | 500034
6%₹215 Cr248,725
↑ 15,000
State Bank of India (Financial Services)
Equity, Since 31 Oct 17 | SBIN
5%₹185 Cr2,351,492
Cholamandalam Financial Holdings Ltd (Financial Services)
Equity, Since 31 Jan 20 | CHOLAHLDNG
4%₹125 Cr667,972
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Jan 19 | KOTAKBANK
3%₹104 Cr469,972
Shriram Finance Ltd (Financial Services)
Equity, Since 30 Jun 23 | SHRIRAMFIN
3%₹96 Cr1,577,227
↓ -473
AU Small Finance Bank Ltd (Financial Services)
Equity, Since 30 Nov 23 | 540611
3%₹89 Cr1,308,861
SBI Life Insurance Co Ltd (Financial Services)
Equity, Since 31 Mar 21 | SBILIFE
2%₹61 Cr344,402

3. Invesco India Financial Services Fund

(Erstwhile Invesco India Banking Fund)

The investment objective of the Scheme is to generate long-term capital growth from a portfolio of equity and equity-related securities of companies engaged in the business of banking and financial services.

Invesco India Financial Services Fund is a Equity - Sectoral fund was launched on 14 Jul 08. It is a fund with High risk and has given a CAGR/Annualized return of 16.8% since its launch.  Ranked 5 in Sectoral category.  Return for 2024 was 19.8% , 2023 was 26% and 2022 was 12.8% .

Below is the key information for Invesco India Financial Services Fund

Invesco India Financial Services Fund
Growth
Launch Date 14 Jul 08
NAV (06 Jun 25) ₹138.74 ↑ 2.51   (1.84 %)
Net Assets (Cr) ₹1,308 on 30 Apr 25
Category Equity - Sectoral
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk High
Expense Ratio 2.39
Sharpe Ratio 0.4
Information Ratio 0.45
Alpha Ratio -7.25
Min Investment 5,000
Min SIP Investment 100
Exit Load 0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹16,979
31 May 22₹16,497
31 May 23₹20,021
31 May 24₹26,297
31 May 25₹31,198

Invesco India Financial Services Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹556,833.
Net Profit of ₹256,833
Invest Now

Returns for Invesco India Financial Services Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25

DurationReturns
1 Month 8.1%
3 Month 20%
6 Month 4%
1 Year 21.7%
3 Year 25.4%
5 Year 24.6%
10 Year
15 Year
Since launch 16.8%
Historical performance (Yearly) on absolute basis
YearReturns
2024 19.8%
2023 26%
2022 12.8%
2021 14%
2020 2.4%
2019 21.2%
2018 -0.3%
2017 45.2%
2016 10.4%
2015 -2.1%
Fund Manager information for Invesco India Financial Services Fund
NameSinceTenure
Dhimant Kothari1 Jun 187 Yr.
Hiten Jain19 May 205.04 Yr.

Data below for Invesco India Financial Services Fund as on 30 Apr 25

Equity Sector Allocation
SectorValue
Financial Services94.78%
Health Care1.01%
Technology0.97%
Asset Allocation
Asset ClassValue
Cash1.9%
Equity98.1%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK
22%₹282 Cr1,973,483
↑ 45,488
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 08 | HDFCBANK
20%₹266 Cr1,383,926
↑ 99,477
Axis Bank Ltd (Financial Services)
Equity, Since 31 May 18 | 532215
6%₹77 Cr645,964
State Bank of India (Financial Services)
Equity, Since 31 Aug 20 | SBIN
5%₹66 Cr838,841
Multi Commodity Exchange of India Ltd (Financial Services)
Equity, Since 28 Feb 22 | MCX
3%₹40 Cr65,364
↑ 16,295
Cholamandalam Investment and Finance Co Ltd (Financial Services)
Equity, Since 31 Jul 17 | CHOLAFIN
3%₹40 Cr267,947
Karur Vysya Bank Ltd (Financial Services)
Equity, Since 30 Sep 22 | 590003
3%₹39 Cr1,789,294
↑ 174,903
Shriram Finance Ltd (Financial Services)
Equity, Since 28 Feb 25 | SHRIRAMFIN
3%₹34 Cr562,890
HDFC Asset Management Co Ltd (Financial Services)
Equity, Since 31 Jul 24 | HDFCAMC
3%₹34 Cr78,652
PB Fintech Ltd (Financial Services)
Equity, Since 30 Nov 21 | 543390
3%₹33 Cr202,712

4. UTI Banking and Financial Services Fund

(Erstwhile UTI Banking Sector Fund)

Investment objective is "capital appreciation" through investments in the stocks of the companies/institutions engaged in the banking and financial services activities.

UTI Banking and Financial Services Fund is a Equity - Sectoral fund was launched on 7 Apr 04. It is a fund with High risk and has given a CAGR/Annualized return of 15% since its launch.  Ranked 20 in Sectoral category.  Return for 2024 was 11.1% , 2023 was 19.5% and 2022 was 15.1% .

Below is the key information for UTI Banking and Financial Services Fund

UTI Banking and Financial Services Fund
Growth
Launch Date 7 Apr 04
NAV (06 Jun 25) ₹191.258 ↑ 3.63   (1.94 %)
Net Assets (Cr) ₹1,264 on 30 Apr 25
Category Equity - Sectoral
AMC UTI Asset Management Company Ltd
Rating
Risk High
Expense Ratio 2.28
Sharpe Ratio 0.5
Information Ratio 0.17
Alpha Ratio -6.91
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹18,314
31 May 22₹17,889
31 May 23₹21,631
31 May 24₹25,970
31 May 25₹30,865

UTI Banking and Financial Services Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹543,623.
Net Profit of ₹243,623
Invest Now

Returns for UTI Banking and Financial Services Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25

DurationReturns
1 Month 5.7%
3 Month 17%
6 Month 7.2%
1 Year 19.9%
3 Year 21.1%
5 Year 23.9%
10 Year
15 Year
Since launch 15%
Historical performance (Yearly) on absolute basis
YearReturns
2024 11.1%
2023 19.5%
2022 15.1%
2021 14.3%
2020 -5.3%
2019 11.6%
2018 -6.8%
2017 43.5%
2016 13%
2015 -11.3%
Fund Manager information for UTI Banking and Financial Services Fund
NameSinceTenure
Preethi S2 May 223.08 Yr.

Data below for UTI Banking and Financial Services Fund as on 30 Apr 25

Equity Sector Allocation
SectorValue
Financial Services98.25%
Technology0.09%
Asset Allocation
Asset ClassValue
Cash1.65%
Equity98.35%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 04 | ICICIBANK
21%₹264 Cr1,852,344
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | HDFCBANK
15%₹194 Cr1,005,927
Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | 532215
6%₹79 Cr670,000
Bajaj Finance Ltd (Financial Services)
Equity, Since 30 Nov 19 | 500034
6%₹73 Cr84,257
↑ 1,000
Shriram Finance Ltd (Financial Services)
Equity, Since 31 Jan 24 | SHRIRAMFIN
5%₹60 Cr983,680
State Bank of India (Financial Services)
Equity, Since 28 Feb 18 | SBIN
5%₹59 Cr750,000
India Shelter Finance Corporation Ltd (Financial Services)
Equity, Since 31 Dec 23 | INDIASHLTR
5%₹58 Cr671,973
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Sep 18 | KOTAKBANK
4%₹49 Cr223,946
Karur Vysya Bank Ltd (Financial Services)
Equity, Since 31 Dec 18 | 590003
3%₹42 Cr1,915,787
↑ 39,246
Max Financial Services Ltd (Financial Services)
Equity, Since 30 Sep 22 | 500271
3%₹41 Cr314,018

5. Sundaram Financial Services Opportunities Fund

Seek capital appreciation by investing predominantly in equity and equity related securities of indian companies engaged in banking and financial Services.

Sundaram Financial Services Opportunities Fund is a Equity - Sectoral fund was launched on 10 Jun 08. It is a fund with High risk and has given a CAGR/Annualized return of 14.9% since its launch.  Ranked 23 in Sectoral category.  Return for 2024 was 7.1% , 2023 was 31.1% and 2022 was 16.8% .

Below is the key information for Sundaram Financial Services Opportunities Fund

Sundaram Financial Services Opportunities Fund
Growth
Launch Date 10 Jun 08
NAV (06 Jun 25) ₹105.78 ↑ 2.22   (2.15 %)
Net Assets (Cr) ₹1,524 on 30 Apr 25
Category Equity - Sectoral
AMC Sundaram Asset Management Company Ltd
Rating
Risk High
Expense Ratio 2.24
Sharpe Ratio 0.24
Information Ratio 0.72
Alpha Ratio -9.99
Min Investment 100,000
Min SIP Investment 100
Exit Load 0-12 Months (1%),12 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹17,652
31 May 22₹17,524
31 May 23₹21,912
31 May 24₹28,876
31 May 25₹32,550

Sundaram Financial Services Opportunities Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹570,326.
Net Profit of ₹270,326
Invest Now

Returns for Sundaram Financial Services Opportunities Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25

DurationReturns
1 Month 5%
3 Month 16.1%
6 Month 6.4%
1 Year 14.3%
3 Year 24.1%
5 Year 25.3%
10 Year
15 Year
Since launch 14.9%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.1%
2023 31.1%
2022 16.8%
2021 15.3%
2020 2.7%
2019 26.4%
2018 -3.7%
2017 33.3%
2016 12.8%
2015 -9%
Fund Manager information for Sundaram Financial Services Opportunities Fund
NameSinceTenure
Rohit Seksaria30 Dec 177.42 Yr.

Data below for Sundaram Financial Services Opportunities Fund as on 30 Apr 25

Equity Sector Allocation
SectorValue
Financial Services92.34%
Asset Allocation
Asset ClassValue
Cash5.79%
Equity93.24%
Debt0.96%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 08 | HDFCBANK
19%₹294 Cr1,525,703
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 10 | ICICIBANK
13%₹191 Cr1,339,673
Axis Bank Ltd (Financial Services)
Equity, Since 28 Feb 10 | 532215
10%₹149 Cr1,259,449
State Bank of India (Financial Services)
Equity, Since 31 Dec 08 | SBIN
5%₹79 Cr1,003,469
Shriram Finance Ltd (Financial Services)
Equity, Since 30 Sep 23 | SHRIRAMFIN
4%₹66 Cr1,085,825
↑ 49,380
PNB Housing Finance Ltd (Financial Services)
Equity, Since 31 Jul 24 | PNBHOUSING
4%₹66 Cr654,542
Ujjivan Small Finance Bank Ltd Ordinary Shares (Financial Services)
Equity, Since 31 May 24 | UJJIVANSFB
4%₹66 Cr15,383,384
Bajaj Finserv Ltd (Financial Services)
Equity, Since 31 Mar 25 | 532978
4%₹62 Cr317,616
CSB Bank Ltd Ordinary Shares (Financial Services)
Equity, Since 30 Jun 20 | CSBBANK
4%₹58 Cr1,644,042
↓ -53,723
Bank of Baroda (Financial Services)
Equity, Since 29 Feb 24 | 532134
4%₹55 Cr2,208,626

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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