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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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.

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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Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) Aditya Birla Sun Life Banking And Financial Services Fund Growth ₹64.5
↑ 0.08 ₹3,708 6.5 5.3 17.1 17.5 15.8 8.7 ICICI Prudential Banking and Financial Services Fund Growth ₹138.55
↓ -0.08 ₹11,085 4.1 3 15.1 16 16.5 11.6 Invesco India Financial Services Fund Growth ₹145.48
↑ 0.07 ₹1,589 7.2 5.3 14 21.6 18 19.8 Sundaram Financial Services Opportunities Fund Growth ₹109.347
↑ 0.17 ₹1,666 8.3 4.1 15.5 19 17.7 7.1 UTI Banking and Financial Services Fund Growth ₹197.547
↓ -0.25 ₹1,386 4.7 3.1 15.2 16.5 15.8 11.1 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Dec 25 Research Highlights & Commentary of 5 Funds showcased
Commentary Aditya Birla Sun Life Banking And Financial Services Fund ICICI Prudential Banking and Financial Services Fund Invesco India Financial Services Fund Sundaram Financial Services Opportunities Fund UTI Banking and Financial Services Fund Point 1 Upper mid AUM (₹3,708 Cr). Highest AUM (₹11,085 Cr). Bottom quartile AUM (₹1,589 Cr). Lower mid AUM (₹1,666 Cr). Bottom quartile AUM (₹1,386 Cr). Point 2 Established history (12+ yrs). Established history (17+ yrs). Established history (17+ yrs). Established history (17+ yrs). Oldest track record among peers (21 yrs). Point 3 Top rated. Rating: 5★ (upper mid). Rating: 4★ (lower mid). Rating: 3★ (bottom quartile). Rating: 3★ (bottom quartile). Point 4 Risk profile: High. Risk profile: High. Risk profile: High. Risk profile: High. Risk profile: High. Point 5 5Y return: 15.76% (bottom quartile). 5Y return: 16.50% (lower mid). 5Y return: 18.00% (top quartile). 5Y return: 17.67% (upper mid). 5Y return: 15.78% (bottom quartile). Point 6 3Y return: 17.54% (lower mid). 3Y return: 16.05% (bottom quartile). 3Y return: 21.60% (top quartile). 3Y return: 18.96% (upper mid). 3Y return: 16.54% (bottom quartile). Point 7 1Y return: 17.10% (top quartile). 1Y return: 15.13% (bottom quartile). 1Y return: 13.96% (bottom quartile). 1Y return: 15.53% (upper mid). 1Y return: 15.21% (lower mid). Point 8 Alpha: -2.82 (lower mid). Alpha: -0.89 (top quartile). Alpha: -4.69 (bottom quartile). Alpha: -4.35 (bottom quartile). Alpha: -2.70 (upper mid). Point 9 Sharpe: 0.63 (lower mid). Sharpe: 0.74 (top quartile). Sharpe: 0.50 (bottom quartile). Sharpe: 0.52 (bottom quartile). Sharpe: 0.64 (upper mid). Point 10 Information ratio: 0.29 (lower mid). Information ratio: 0.23 (bottom quartile). Information ratio: 0.83 (top quartile). Information ratio: 0.63 (upper mid). Information ratio: 0.26 (bottom quartile). Aditya Birla Sun Life Banking And Financial Services Fund
ICICI Prudential Banking and Financial Services Fund
Invesco India Financial Services Fund
Sundaram Financial Services Opportunities Fund
UTI Banking and Financial Services Fund
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.
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. Below is the key information for Aditya Birla Sun Life Banking And Financial Services Fund Returns up to 1 year are on 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. Research Highlights for ICICI Prudential Banking and Financial Services Fund Below is the key information for ICICI Prudential Banking and Financial Services Fund Returns up to 1 year are on (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. Research Highlights for Invesco India Financial Services Fund Below is the key information for Invesco India Financial Services Fund Returns up to 1 year are on Seek capital appreciation by investing predominantly in equity and equity related securities of indian companies engaged in banking and financial Services. Research Highlights for Sundaram Financial Services Opportunities Fund Below is the key information for Sundaram Financial Services Opportunities Fund Returns up to 1 year are on (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. Research Highlights for UTI Banking and Financial Services Fund Below is the key information for UTI Banking and Financial Services Fund Returns up to 1 year are on 1. 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 (24 Dec 25) ₹64.5 ↑ 0.08 (0.12 %) Net Assets (Cr) ₹3,708 on 30 Nov 25 Category Equity - Sectoral AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆☆ Risk High Expense Ratio 1.99 Sharpe Ratio 0.63 Information Ratio 0.29 Alpha Ratio -2.82 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.
Date Value 30 Nov 20 ₹10,000 30 Nov 21 ₹12,650 30 Nov 22 ₹13,995 30 Nov 23 ₹16,045 30 Nov 24 ₹18,893 30 Nov 25 ₹21,671 Returns for Aditya Birla Sun Life Banking And Financial Services Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Dec 25 Duration Returns 1 Month 1.2% 3 Month 6.5% 6 Month 5.3% 1 Year 17.1% 3 Year 17.5% 5 Year 15.8% 10 Year 15 Year Since launch 16.8% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Dhaval Gala 26 Aug 15 10.27 Yr. Data below for Aditya Birla Sun Life Banking And Financial Services Fund as on 30 Nov 25
Equity Sector Allocation
Sector Value Financial Services 97.86% Technology 1.09% Asset Allocation
Asset Class Value Cash 1.05% Equity 98.95% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | ICICIBANK18% ₹650 Cr 4,677,929 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | HDFCBANK15% ₹570 Cr 5,658,496
↓ -350,000 Axis Bank Ltd (Financial Services)
Equity, Since 31 Oct 18 | AXISBANK8% ₹295 Cr 2,302,100 State Bank of India (Financial Services)
Equity, Since 31 Oct 17 | SBIN7% ₹256 Cr 2,618,689
↓ -100,000 Bajaj Finance Ltd (Financial Services)
Equity, Since 30 Sep 16 | BAJFINANCE6% ₹222 Cr 2,137,250 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Jan 19 | KOTAKBANK4% ₹151 Cr 709,333 AU Small Finance Bank Ltd (Financial Services)
Equity, Since 30 Nov 23 | AUBANK3% ₹129 Cr 1,346,861 ICICI Lombard General Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 19 | ICICIGI3% ₹111 Cr 565,076 Cholamandalam Financial Holdings Ltd (Financial Services)
Equity, Since 31 Jan 20 | CHOLAHLDNG3% ₹107 Cr 581,588
↓ -42,318 Shriram Finance Ltd (Financial Services)
Equity, Since 30 Jun 23 | SHRIRAMFIN3% ₹102 Cr 1,198,382 2. ICICI Prudential Banking and Financial Services Fund
ICICI Prudential Banking and Financial Services Fund
Growth Launch Date 22 Aug 08 NAV (24 Dec 25) ₹138.55 ↓ -0.08 (-0.06 %) Net Assets (Cr) ₹11,085 on 30 Nov 25 Category Equity - Sectoral AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆☆ Risk High Expense Ratio 1.83 Sharpe Ratio 0.74 Information Ratio 0.23 Alpha Ratio -0.89 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.
Date Value 30 Nov 20 ₹10,000 30 Nov 21 ₹13,072 30 Nov 22 ₹14,756 30 Nov 23 ₹16,381 30 Nov 24 ₹19,617 30 Nov 25 ₹22,467 Returns for ICICI Prudential Banking and Financial Services Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Dec 25 Duration Returns 1 Month -0.1% 3 Month 4.1% 6 Month 3% 1 Year 15.1% 3 Year 16% 5 Year 16.5% 10 Year 15 Year Since launch 16.4% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Roshan Chutkey 29 Jan 18 7.84 Yr. Sharmila D’mello 30 Jun 22 3.42 Yr. Data below for ICICI Prudential Banking and Financial Services Fund as on 30 Nov 25
Equity Sector Allocation
Sector Value Financial Services 92.37% Health Care 1.26% Technology 0.43% Industrials 0.32% Asset Allocation
Asset Class Value Cash 5.62% Equity 94.38% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 08 | HDFCBANK20% ₹2,246 Cr 22,294,728 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 08 | ICICIBANK18% ₹2,050 Cr 14,758,497 State Bank of India (Financial Services)
Equity, Since 31 Oct 08 | SBIN8% ₹848 Cr 8,657,956
↓ -578,710 Axis Bank Ltd (Financial Services)
Equity, Since 28 Feb 19 | AXISBANK8% ₹841 Cr 6,575,273 SBI Life Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 17 | SBILIFE6% ₹610 Cr 3,104,315 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | KOTAKBANK5% ₹529 Cr 2,488,791 HDFC Life Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 23 | HDFCLIFE4% ₹401 Cr 5,241,538
↑ 356,588 Max Financial Services Ltd (Financial Services)
Equity, Since 31 Aug 19 | MFSL3% ₹281 Cr 1,649,161 ICICI Lombard General Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 19 | ICICIGI2% ₹267 Cr 1,355,046 LIC Housing Finance Ltd (Financial Services)
Equity, Since 30 Nov 24 | LICHSGFIN2% ₹220 Cr 4,002,710
↑ 35,434 3. Invesco India Financial Services Fund
Invesco India Financial Services Fund
Growth Launch Date 14 Jul 08 NAV (24 Dec 25) ₹145.48 ↑ 0.07 (0.05 %) Net Assets (Cr) ₹1,589 on 30 Nov 25 Category Equity - Sectoral AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk High Expense Ratio 2.23 Sharpe Ratio 0.5 Information Ratio 0.83 Alpha Ratio -4.69 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.
Date Value 30 Nov 20 ₹10,000 30 Nov 21 ₹12,137 30 Nov 22 ₹13,474 30 Nov 23 ₹16,100 30 Nov 24 ₹20,580 30 Nov 25 ₹23,387 Returns for Invesco India Financial Services Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Dec 25 Duration Returns 1 Month 1.1% 3 Month 7.2% 6 Month 5.3% 1 Year 14% 3 Year 21.6% 5 Year 18% 10 Year 15 Year Since launch 16.6% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Hiten Jain 19 May 20 5.54 Yr. Data below for Invesco India Financial Services Fund as on 30 Nov 25
Equity Sector Allocation
Sector Value Financial Services 96.24% Technology 1.78% Health Care 0.88% Asset Allocation
Asset Class Value Cash 1.1% Equity 98.9% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK19% ₹295 Cr 2,125,794 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 08 | HDFCBANK18% ₹286 Cr 2,838,202 Multi Commodity Exchange of India Ltd (Financial Services)
Equity, Since 28 Feb 22 | MCX6% ₹93 Cr 92,142 Axis Bank Ltd (Financial Services)
Equity, Since 31 May 18 | AXISBANK5% ₹83 Cr 645,964 Central Depository Services (India) Ltd (Financial Services)
Equity, Since 31 Aug 23 | CDSL4% ₹62 Cr 381,194 Karur Vysya Bank Ltd (Financial Services)
Equity, Since 30 Sep 22 | KARURVYSYA4% ₹58 Cr 2,337,567 Cholamandalam Investment and Finance Co Ltd (Financial Services)
Equity, Since 31 Jul 17 | CHOLAFIN4% ₹57 Cr 325,622 Shriram Finance Ltd (Financial Services)
Equity, Since 28 Feb 25 | SHRIRAMFIN3% ₹48 Cr 562,890 Muthoot Finance Ltd (Financial Services)
Equity, Since 31 Jul 24 | MUTHOOTFIN3% ₹44 Cr 116,186 Nuvama Wealth Management Ltd (Financial Services)
Equity, Since 30 Sep 25 | NUVAMA3% ₹42 Cr 56,468
↑ 3,415 4. Sundaram Financial Services Opportunities Fund
Sundaram Financial Services Opportunities Fund
Growth Launch Date 10 Jun 08 NAV (24 Dec 25) ₹109.347 ↑ 0.17 (0.16 %) Net Assets (Cr) ₹1,666 on 30 Nov 25 Category Equity - Sectoral AMC Sundaram Asset Management Company Ltd Rating ☆☆☆ Risk High Expense Ratio 2.12 Sharpe Ratio 0.52 Information Ratio 0.63 Alpha Ratio -4.35 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.
Date Value 30 Nov 20 ₹10,000 30 Nov 21 ₹12,316 30 Nov 22 ₹14,200 30 Nov 23 ₹17,326 30 Nov 24 ₹20,413 30 Nov 25 ₹23,216 Returns for Sundaram Financial Services Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Dec 25 Duration Returns 1 Month 0.7% 3 Month 8.3% 6 Month 4.1% 1 Year 15.5% 3 Year 19% 5 Year 17.7% 10 Year 15 Year Since launch 14.6% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Rohit Seksaria 30 Dec 17 7.92 Yr. Data below for Sundaram Financial Services Opportunities Fund as on 30 Nov 25
Equity Sector Allocation
Sector Value Financial Services 96.07% Asset Allocation
Asset Class Value Cash 3.85% Equity 96.07% Debt 0.08% Other 0% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 08 | HDFCBANK19% ₹314 Cr 3,114,256 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 10 | ICICIBANK12% ₹197 Cr 1,416,021
↑ 24,039 Axis Bank Ltd (Financial Services)
Equity, Since 28 Feb 10 | AXISBANK10% ₹166 Cr 1,297,927 State Bank of India (Financial Services)
Equity, Since 31 Dec 08 | SBIN6% ₹98 Cr 1,003,469 Bajaj Finserv Ltd (Financial Services)
Equity, Since 31 Mar 25 | BAJAJFINSV5% ₹83 Cr 397,562
↑ 56,063 DCB Bank Ltd (Financial Services)
Equity, Since 30 Sep 24 | DCBBANK5% ₹78 Cr 4,243,632 Shriram Finance Ltd (Financial Services)
Equity, Since 30 Sep 23 | SHRIRAMFIN4% ₹73 Cr 857,649
↓ -145,949 CSB Bank Ltd Ordinary Shares (Financial Services)
Equity, Since 30 Jun 20 | CSBBANK4% ₹66 Cr 1,606,226
↓ -37,816 Bank of Baroda (Financial Services)
Equity, Since 29 Feb 24 | BANKBARODA4% ₹64 Cr 2,208,626 PNB Housing Finance Ltd (Financial Services)
Equity, Since 31 Jul 24 | PNBHOUSING4% ₹60 Cr 665,351 5. UTI Banking and Financial Services Fund
UTI Banking and Financial Services Fund
Growth Launch Date 7 Apr 04 NAV (24 Dec 25) ₹197.547 ↓ -0.25 (-0.13 %) Net Assets (Cr) ₹1,386 on 30 Nov 25 Category Equity - Sectoral AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk High Expense Ratio 2.2 Sharpe Ratio 0.64 Information Ratio 0.26 Alpha Ratio -2.7 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.
Date Value 30 Nov 20 ₹10,000 30 Nov 21 ₹12,433 30 Nov 22 ₹14,147 30 Nov 23 ₹15,611 30 Nov 24 ₹18,943 30 Nov 25 ₹21,771 Returns for UTI Banking and Financial Services Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Dec 25 Duration Returns 1 Month 0.2% 3 Month 4.7% 6 Month 3.1% 1 Year 15.2% 3 Year 16.5% 5 Year 15.8% 10 Year 15 Year Since launch 14.7% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Amit Premchandani 16 Jun 25 0.46 Yr. Data below for UTI Banking and Financial Services Fund as on 30 Nov 25
Equity Sector Allocation
Sector Value Financial Services 97.15% Technology 1.09% Asset Allocation
Asset Class Value Cash 1.75% Equity 98.25% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 04 | ICICIBANK19% ₹257 Cr 1,852,344 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | HDFCBANK16% ₹219 Cr 2,175,000 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | AXISBANK9% ₹118 Cr 925,000 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Sep 18 | KOTAKBANK8% ₹117 Cr 550,000 State Bank of India (Financial Services)
Equity, Since 28 Feb 18 | SBIN6% ₹83 Cr 850,000 Bajaj Finance Ltd (Financial Services)
Equity, Since 30 Nov 19 | BAJFINANCE6% ₹83 Cr 800,000
↓ -20,000 Shriram Finance Ltd (Financial Services)
Equity, Since 31 Jan 24 | SHRIRAMFIN3% ₹43 Cr 500,000
↓ -50,000 Karur Vysya Bank Ltd (Financial Services)
Equity, Since 31 Dec 18 | KARURVYSYA3% ₹42 Cr 1,700,000
↓ -100,000 Max Financial Services Ltd (Financial Services)
Equity, Since 30 Sep 22 | MFSL3% ₹41 Cr 240,000 Ujjivan Small Finance Bank Ltd Ordinary Shares (Financial Services)
Equity, Since 30 Apr 25 | UJJIVANSFB3% ₹36 Cr 6,534,317
Research Highlights for Aditya Birla Sun Life Banking And Financial Services Fund