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 ₹64.59
↑ 0.77 ₹3,606 9.2 7.7 15.1 16.1 16.8 8.7 ICICI Prudential Banking and Financial Services Fund Growth ₹140.23
↑ 1.65 ₹10,593 6.4 5.5 14.5 15.7 17.9 11.6 Invesco India Financial Services Fund Growth ₹146.22
↑ 2.34 ₹1,516 8.6 9.1 14 20.6 18.7 19.8 UTI Banking and Financial Services Fund Growth ₹199.722
↑ 2.95 ₹1,347 8.3 6.5 14.7 15.8 16.9 11.1 Sundaram Financial Services Opportunities Fund Growth ₹110.05
↑ 1.59 ₹1,601 11.5 5.9 14.5 18.2 18.6 7.1 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 26 Nov 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 UTI Banking and Financial Services Fund Sundaram Financial Services Opportunities Fund Point 1 Upper mid AUM (₹3,606 Cr). Highest AUM (₹10,593 Cr). Bottom quartile AUM (₹1,516 Cr). Bottom quartile AUM (₹1,347 Cr). Lower mid AUM (₹1,601 Cr). Point 2 Established history (11+ yrs). Established history (17+ yrs). Established history (17+ yrs). Oldest track record among peers (21 yrs). Established history (17+ 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: 16.83% (bottom quartile). 5Y return: 17.89% (lower mid). 5Y return: 18.73% (top quartile). 5Y return: 16.92% (bottom quartile). 5Y return: 18.57% (upper mid). Point 6 3Y return: 16.07% (lower mid). 3Y return: 15.71% (bottom quartile). 3Y return: 20.61% (top quartile). 3Y return: 15.80% (bottom quartile). 3Y return: 18.15% (upper mid). Point 7 1Y return: 15.13% (top quartile). 1Y return: 14.54% (lower mid). 1Y return: 14.05% (bottom quartile). 1Y return: 14.73% (upper mid). 1Y return: 14.49% (bottom quartile). Point 8 Alpha: -3.75 (lower mid). Alpha: -2.18 (top quartile). Alpha: -5.21 (bottom quartile). Alpha: -3.74 (upper mid). Alpha: -6.70 (bottom quartile). Point 9 Sharpe: 0.38 (lower mid). Sharpe: 0.44 (top quartile). Sharpe: 0.29 (bottom quartile). Sharpe: 0.39 (upper mid). Sharpe: 0.19 (bottom quartile). Point 10 Information ratio: 0.26 (lower mid). Information ratio: 0.26 (bottom quartile). Information ratio: 0.79 (top quartile). Information ratio: 0.24 (bottom quartile). Information ratio: 0.59 (upper mid). Aditya Birla Sun Life Banking And Financial Services Fund
ICICI Prudential Banking and Financial Services Fund
Invesco India Financial Services Fund
UTI Banking and Financial Services Fund
Sundaram Financial Services Opportunities 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 (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 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 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 (26 Nov 25) ₹64.59 ↑ 0.77 (1.21 %) Net Assets (Cr) ₹3,606 on 31 Oct 25 Category Equity - Sectoral AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆☆ Risk High Expense Ratio 1.99 Sharpe Ratio 0.38 Information Ratio 0.26 Alpha Ratio -3.75 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 31 Oct 20 ₹10,000 31 Oct 21 ₹16,935 31 Oct 22 ₹16,859 31 Oct 23 ₹19,422 31 Oct 24 ₹23,794 31 Oct 25 ₹26,408 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 26 Nov 25 Duration Returns 1 Month 2.4% 3 Month 9.2% 6 Month 7.7% 1 Year 15.1% 3 Year 16.1% 5 Year 16.8% 10 Year 15 Year Since launch 16.9% 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 10.19 Yr. Data below for Aditya Birla Sun Life Banking And Financial Services Fund as on 31 Oct 25
Equity Sector Allocation
Sector Value Financial Services 96.6% Technology 1.14% Asset Allocation
Asset Class Value Cash 2.25% Equity 97.75% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | ICICIBANK17% ₹629 Cr 4,677,929 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | HDFCBANK16% ₹593 Cr 6,008,496
↓ -575,000 Axis Bank Ltd (Financial Services)
Equity, Since 31 Oct 18 | 5322158% ₹284 Cr 2,302,100 State Bank of India (Financial Services)
Equity, Since 31 Oct 17 | SBIN7% ₹255 Cr 2,718,689 Bajaj Finance Ltd (Financial Services)
Equity, Since 30 Sep 16 | 5000346% ₹223 Cr 2,137,250 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Jan 19 | KOTAKBANK4% ₹149 Cr 709,333 Cholamandalam Financial Holdings Ltd (Financial Services)
Equity, Since 31 Jan 20 | CHOLAHLDNG3% ₹119 Cr 623,906 AU Small Finance Bank Ltd (Financial Services)
Equity, Since 30 Nov 23 | 5406113% ₹118 Cr 1,346,861
↓ -100,000 ICICI Lombard General Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 19 | ICICIGI3% ₹113 Cr 565,076 HDB Financial Services Ltd (Financial Services)
Equity, Since 30 Jun 25 | HDBFS3% ₹105 Cr 1,429,781 2. ICICI Prudential Banking and Financial Services Fund
ICICI Prudential Banking and Financial Services Fund
Growth Launch Date 22 Aug 08 NAV (26 Nov 25) ₹140.23 ↑ 1.65 (1.19 %) Net Assets (Cr) ₹10,593 on 31 Oct 25 Category Equity - Sectoral AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆☆ Risk High Expense Ratio 1.83 Sharpe Ratio 0.44 Information Ratio 0.26 Alpha Ratio -2.18 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 31 Oct 20 ₹10,000 31 Oct 21 ₹17,106 31 Oct 22 ₹17,122 31 Oct 23 ₹19,008 31 Oct 24 ₹23,905 31 Oct 25 ₹26,553 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 26 Nov 25 Duration Returns 1 Month 2.1% 3 Month 6.4% 6 Month 5.5% 1 Year 14.5% 3 Year 15.7% 5 Year 17.9% 10 Year 15 Year Since launch 16.5% 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 7.76 Yr. Sharmila D’mello 30 Jun 22 3.34 Yr. Data below for ICICI Prudential Banking and Financial Services Fund as on 31 Oct 25
Equity Sector Allocation
Sector Value Financial Services 94.87% Health Care 1.44% Technology 0.53% Industrials 0.35% Asset Allocation
Asset Class Value Cash 2.8% Equity 97.2% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 08 | HDFCBANK21% ₹2,201 Cr 22,294,728
↑ 1,213,571 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 08 | ICICIBANK19% ₹1,985 Cr 14,758,497
↑ 539,000 State Bank of India (Financial Services)
Equity, Since 31 Oct 08 | SBIN8% ₹865 Cr 9,236,666
↓ -253,009 Axis Bank Ltd (Financial Services)
Equity, Since 28 Feb 19 | 5322158% ₹811 Cr 6,575,273
↓ -311,414 SBI Life Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 17 | SBILIFE6% ₹607 Cr 3,104,315 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | KOTAKBANK5% ₹523 Cr 2,488,791
↓ -149,591 HDFC Life Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 23 | HDFCLIFE3% ₹358 Cr 4,884,950
↓ -214,746 ICICI Lombard General Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 19 | ICICIGI3% ₹270 Cr 1,355,046 Max Financial Services Ltd (Financial Services)
Equity, Since 31 Aug 19 | 5002712% ₹255 Cr 1,649,161 LIC Housing Finance Ltd (Financial Services)
Equity, Since 30 Nov 24 | LICHSGFIN2% ₹227 Cr 3,967,276
↑ 516,928 3. Invesco India Financial Services Fund
Invesco India Financial Services Fund
Growth Launch Date 14 Jul 08 NAV (26 Nov 25) ₹146.22 ↑ 2.34 (1.63 %) Net Assets (Cr) ₹1,516 on 31 Oct 25 Category Equity - Sectoral AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk High Expense Ratio 2.23 Sharpe Ratio 0.29 Information Ratio 0.79 Alpha Ratio -5.21 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 31 Oct 20 ₹10,000 31 Oct 21 ₹15,296 31 Oct 22 ₹15,236 31 Oct 23 ₹17,658 31 Oct 24 ₹24,186 31 Oct 25 ₹26,623 Returns for Invesco India Financial Services Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Nov 25 Duration Returns 1 Month 3.4% 3 Month 8.6% 6 Month 9.1% 1 Year 14% 3 Year 20.6% 5 Year 18.7% 10 Year 15 Year Since launch 16.7% 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 5.46 Yr. Data below for Invesco India Financial Services Fund as on 31 Oct 25
Equity Sector Allocation
Sector Value Financial Services 96.18% Technology 1.9% Health Care 1.11% Asset Allocation
Asset Class Value Cash 0.81% Equity 99.19% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK19% ₹286 Cr 2,125,794 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 08 | HDFCBANK18% ₹280 Cr 2,838,202 Multi Commodity Exchange of India Ltd (Financial Services)
Equity, Since 28 Feb 22 | MCX6% ₹85 Cr 92,142 Axis Bank Ltd (Financial Services)
Equity, Since 31 May 18 | 5322155% ₹80 Cr 645,964 Central Depository Services (India) Ltd (Financial Services)
Equity, Since 31 Aug 23 | CDSL4% ₹61 Cr 381,194
↑ 172,656 Karur Vysya Bank Ltd (Financial Services)
Equity, Since 30 Sep 22 | 5900034% ₹57 Cr 2,337,567 Cholamandalam Investment and Finance Co Ltd (Financial Services)
Equity, Since 31 Jul 17 | CHOLAFIN4% ₹55 Cr 325,622 Shriram Finance Ltd (Financial Services)
Equity, Since 28 Feb 25 | SHRIRAMFIN3% ₹42 Cr 562,890 Indian Bank (Financial Services)
Equity, Since 31 May 24 | 5328143% ₹39 Cr 454,070 Nuvama Wealth Management Ltd (Financial Services)
Equity, Since 30 Sep 25 | NUVAMA2% ₹38 Cr 53,053 4. UTI Banking and Financial Services Fund
UTI Banking and Financial Services Fund
Growth Launch Date 7 Apr 04 NAV (26 Nov 25) ₹199.722 ↑ 2.95 (1.50 %) Net Assets (Cr) ₹1,347 on 31 Oct 25 Category Equity - Sectoral AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk High Expense Ratio 2.2 Sharpe Ratio 0.39 Information Ratio 0.24 Alpha Ratio -3.74 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 31 Oct 20 ₹10,000 31 Oct 21 ₹16,452 31 Oct 22 ₹16,763 31 Oct 23 ₹18,132 31 Oct 24 ₹23,537 31 Oct 25 ₹26,161 Returns for UTI Banking and Financial Services Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Nov 25 Duration Returns 1 Month 1.6% 3 Month 8.3% 6 Month 6.5% 1 Year 14.7% 3 Year 15.8% 5 Year 16.9% 10 Year 15 Year Since launch 14.8% 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 0.38 Yr. Data below for UTI Banking and Financial Services Fund as on 31 Oct 25
Equity Sector Allocation
Sector Value Financial Services 97.74% Technology 1.31% Asset Allocation
Asset Class Value Cash 0.95% Equity 99.05% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 04 | ICICIBANK19% ₹249 Cr 1,852,344 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | HDFCBANK16% ₹215 Cr 2,175,000
↑ 65,000 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Sep 18 | KOTAKBANK9% ₹116 Cr 550,000 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | 5322158% ₹114 Cr 925,000
↑ 25,000 Bajaj Finance Ltd (Financial Services)
Equity, Since 30 Nov 19 | 5000346% ₹86 Cr 820,000
↓ -22,570 State Bank of India (Financial Services)
Equity, Since 28 Feb 18 | SBIN6% ₹80 Cr 850,000 Karur Vysya Bank Ltd (Financial Services)
Equity, Since 31 Dec 18 | 5900033% ₹44 Cr 1,800,000
↓ -200,000 Shriram Finance Ltd (Financial Services)
Equity, Since 31 Jan 24 | SHRIRAMFIN3% ₹41 Cr 550,000
↓ -100,000 Max Financial Services Ltd (Financial Services)
Equity, Since 30 Sep 22 | 5002713% ₹37 Cr 240,000 Ujjivan Small Finance Bank Ltd Ordinary Shares (Financial Services)
Equity, Since 30 Apr 25 | 5429043% ₹34 Cr 6,534,317 5. Sundaram Financial Services Opportunities Fund
Sundaram Financial Services Opportunities Fund
Growth Launch Date 10 Jun 08 NAV (26 Nov 25) ₹110.05 ↑ 1.59 (1.47 %) Net Assets (Cr) ₹1,601 on 31 Oct 25 Category Equity - Sectoral AMC Sundaram Asset Management Company Ltd Rating ☆☆☆ Risk High Expense Ratio 2.12 Sharpe Ratio 0.19 Information Ratio 0.59 Alpha Ratio -6.7 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 31 Oct 20 ₹10,000 31 Oct 21 ₹16,097 31 Oct 22 ₹16,631 31 Oct 23 ₹19,993 31 Oct 24 ₹25,334 31 Oct 25 ₹27,434 Returns for Sundaram Financial Services Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Nov 25 Duration Returns 1 Month 3.6% 3 Month 11.5% 6 Month 5.9% 1 Year 14.5% 3 Year 18.2% 5 Year 18.6% 10 Year 15 Year Since launch 14.7% 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 7.84 Yr. Data below for Sundaram Financial Services Opportunities Fund as on 31 Oct 25
Equity Sector Allocation
Sector Value Financial Services 95.66% Asset Allocation
Asset Class Value Cash 4.25% Equity 95.66% Debt 0.09% Other 0% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 08 | HDFCBANK19% ₹307 Cr 3,114,256
↑ 23,776 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 10 | ICICIBANK12% ₹187 Cr 1,391,982
↑ 52,309 Axis Bank Ltd (Financial Services)
Equity, Since 28 Feb 10 | 53221510% ₹160 Cr 1,297,927
↓ -31,416 State Bank of India (Financial Services)
Equity, Since 31 Dec 08 | SBIN6% ₹94 Cr 1,003,469 Shriram Finance Ltd (Financial Services)
Equity, Since 30 Sep 23 | SHRIRAMFIN5% ₹75 Cr 1,003,598
↓ -82,227 Bajaj Finserv Ltd (Financial Services)
Equity, Since 31 Mar 25 | 5329784% ₹71 Cr 341,499 CSB Bank Ltd Ordinary Shares (Financial Services)
Equity, Since 30 Jun 20 | CSBBANK4% ₹68 Cr 1,644,042 DCB Bank Ltd (Financial Services)
Equity, Since 30 Sep 24 | DCBBANK4% ₹67 Cr 4,243,632 PNB Housing Finance Ltd (Financial Services)
Equity, Since 31 Jul 24 | PNBHOUSING4% ₹62 Cr 665,351
↓ -17,625 Bank of Baroda (Financial Services)
Equity, Since 29 Feb 24 | 5321344% ₹61 Cr 2,208,626
Research Highlights for Aditya Birla Sun Life Banking And Financial Services Fund