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Top Sector Funds Rated by FINCASH for 2025 – 2026

Updated on December 29, 2025 , 2488 views

Investors who are adventurous and are comfortable with fluctuating Market conditions, Mutual Funds have something for you— Sector Funds! A sector fund is a type of Mutual Fund that invests in securities of specific sectors of the Economy, such as telecom, banking, FMCG, Information Technology (IT), pharmaceutical and infrastructure. In other words, sector funds narrow down your invested wealth only to the specific Industry or sector. For instance, a banking sector fund can invest in banks and a pharma fund can invest only in stocks of pharma companies. Sector funds carry a higher Volatility than any other Equity Funds. As, high-risk comes with high-reward, sector funds seem to comply with it.

Some of the sectors like infra, pharma, banking have been consistently growing and have a positive outlook for the future. Investors planning to invest in this fund, here are some of the best performing sector funds that can deliver promising returns.

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Top Rated Sector Funds

FundNAVNet Assets (Cr)Rating3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)Information RatioSharpe Ratio
Sundaram Rural and Consumption Fund Growth ₹97.9654
↑ 0.90
₹1,6280.2-0.5-0.116.115.320.1-0.32-0.22
DSP Natural Resources and New Energy Fund Growth ₹99.065
↑ 0.95
₹1,4676.210.317.120.122.213.900.1
Bandhan Infrastructure Fund Growth ₹48.209
↑ 0.46
₹1,566-1.8-7.6-6.924.926.739.30-0.4
SBI Magnum COMMA Fund Growth ₹110.379
↑ 1.70
₹8305.45.412.31818.510.5-0.090
Mirae Asset Great Consumer Fund Growth ₹95.043
↑ 0.77
₹4,7870.32.33.417.218.117.2-0.27-0.1
Aditya Birla Sun Life Banking And Financial Services Fund Growth ₹64.43
↑ 0.28
₹3,7087.93.217.515.915.28.70.290.63
Franklin Build India Fund Growth ₹143.331
↑ 1.60
₹3,0682.30.13.72626.627.80-0.16
Nippon India Power and Infra Fund Growth ₹345.683
↑ 3.64
₹7,3010.4-2-0.525.926.926.90.42-0.26
Kotak Infrastructure & Economic Reform Fund Growth ₹65.362
↑ 0.71
₹2,3762.1-2-3.720.526.132.4-0.15-0.24
SBI Infrastructure Fund Growth ₹49.3154
↑ 0.40
₹4,7713-3-121.423.820.8-0.14-0.35
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 31 Dec 25
Note: Ratio's shown as on 30 Nov 25

Research Highlights & Commentary of 10 Funds showcased

CommentarySundaram Rural and Consumption FundDSP Natural Resources and New Energy FundBandhan Infrastructure FundSBI Magnum COMMA FundMirae Asset Great Consumer FundAditya Birla Sun Life Banking And Financial Services FundFranklin Build India FundNippon India Power and Infra FundKotak Infrastructure & Economic Reform FundSBI Infrastructure Fund
Point 1Lower mid AUM (₹1,628 Cr).Bottom quartile AUM (₹1,467 Cr).Bottom quartile AUM (₹1,566 Cr).Bottom quartile AUM (₹830 Cr).Top quartile AUM (₹4,787 Cr).Upper mid AUM (₹3,708 Cr).Upper mid AUM (₹3,068 Cr).Highest AUM (₹7,301 Cr).Lower mid AUM (₹2,376 Cr).Upper mid AUM (₹4,771 Cr).
Point 2Established history (19+ yrs).Established history (17+ yrs).Established history (14+ yrs).Established history (20+ yrs).Established history (14+ yrs).Established history (12+ yrs).Established history (16+ yrs).Oldest track record among peers (21 yrs).Established history (17+ yrs).Established history (18+ yrs).
Point 3Top rated.Rating: 5★ (top quartile).Rating: 5★ (upper mid).Rating: 4★ (lower mid).Rating: 4★ (lower mid).Rating: 5★ (upper mid).Rating: 5★ (upper mid).Rating: 4★ (bottom quartile).Rating: 4★ (bottom quartile).Rating: 3★ (bottom quartile).
Point 4Risk profile: Moderately High.Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: High.
Point 55Y return: 15.32% (bottom quartile).5Y return: 22.16% (lower mid).5Y return: 26.71% (top quartile).5Y return: 18.45% (lower mid).5Y return: 18.09% (bottom quartile).5Y return: 15.15% (bottom quartile).5Y return: 26.59% (upper mid).5Y return: 26.93% (top quartile).5Y return: 26.06% (upper mid).5Y return: 23.75% (upper mid).
Point 63Y return: 16.06% (bottom quartile).3Y return: 20.11% (lower mid).3Y return: 24.91% (upper mid).3Y return: 17.98% (lower mid).3Y return: 17.20% (bottom quartile).3Y return: 15.86% (bottom quartile).3Y return: 26.05% (top quartile).3Y return: 25.89% (top quartile).3Y return: 20.51% (upper mid).3Y return: 21.44% (upper mid).
Point 71Y return: -0.07% (lower mid).1Y return: 17.08% (top quartile).1Y return: -6.93% (bottom quartile).1Y return: 12.32% (upper mid).1Y return: 3.38% (upper mid).1Y return: 17.49% (top quartile).1Y return: 3.69% (upper mid).1Y return: -0.51% (lower mid).1Y return: -3.71% (bottom quartile).1Y return: -1.00% (bottom quartile).
Point 8Alpha: -7.12 (lower mid).Alpha: 0.00 (top quartile).Alpha: 0.00 (top quartile).Alpha: -3.46 (upper mid).Alpha: -6.01 (lower mid).Alpha: -2.82 (upper mid).Alpha: 0.00 (upper mid).Alpha: -12.90 (bottom quartile).Alpha: -13.49 (bottom quartile).Alpha: -12.53 (bottom quartile).
Point 9Sharpe: -0.22 (lower mid).Sharpe: 0.10 (top quartile).Sharpe: -0.40 (bottom quartile).Sharpe: 0.00 (upper mid).Sharpe: -0.10 (upper mid).Sharpe: 0.63 (top quartile).Sharpe: -0.16 (upper mid).Sharpe: -0.26 (bottom quartile).Sharpe: -0.24 (lower mid).Sharpe: -0.35 (bottom quartile).
Point 10Information ratio: -0.32 (bottom quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (upper mid).Information ratio: -0.09 (lower mid).Information ratio: -0.27 (bottom quartile).Information ratio: 0.29 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.42 (top quartile).Information ratio: -0.15 (bottom quartile).Information ratio: -0.14 (lower mid).

Sundaram Rural and Consumption Fund

  • Lower mid AUM (₹1,628 Cr).
  • Established history (19+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 15.32% (bottom quartile).
  • 3Y return: 16.06% (bottom quartile).
  • 1Y return: -0.07% (lower mid).
  • Alpha: -7.12 (lower mid).
  • Sharpe: -0.22 (lower mid).
  • Information ratio: -0.32 (bottom quartile).

DSP Natural Resources and New Energy Fund

  • Bottom quartile AUM (₹1,467 Cr).
  • Established history (17+ yrs).
  • Rating: 5★ (top quartile).
  • Risk profile: High.
  • 5Y return: 22.16% (lower mid).
  • 3Y return: 20.11% (lower mid).
  • 1Y return: 17.08% (top quartile).
  • Alpha: 0.00 (top quartile).
  • Sharpe: 0.10 (top quartile).
  • Information ratio: 0.00 (upper mid).

Bandhan Infrastructure Fund

  • Bottom quartile AUM (₹1,566 Cr).
  • Established history (14+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: High.
  • 5Y return: 26.71% (top quartile).
  • 3Y return: 24.91% (upper mid).
  • 1Y return: -6.93% (bottom quartile).
  • Alpha: 0.00 (top quartile).
  • Sharpe: -0.40 (bottom quartile).
  • Information ratio: 0.00 (upper mid).

SBI Magnum COMMA Fund

  • Bottom quartile AUM (₹830 Cr).
  • Established history (20+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: High.
  • 5Y return: 18.45% (lower mid).
  • 3Y return: 17.98% (lower mid).
  • 1Y return: 12.32% (upper mid).
  • Alpha: -3.46 (upper mid).
  • Sharpe: 0.00 (upper mid).
  • Information ratio: -0.09 (lower mid).

Mirae Asset Great Consumer Fund

  • Top quartile AUM (₹4,787 Cr).
  • Established history (14+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: High.
  • 5Y return: 18.09% (bottom quartile).
  • 3Y return: 17.20% (bottom quartile).
  • 1Y return: 3.38% (upper mid).
  • Alpha: -6.01 (lower mid).
  • Sharpe: -0.10 (upper mid).
  • Information ratio: -0.27 (bottom quartile).

Aditya Birla Sun Life Banking And Financial Services Fund

  • Upper mid AUM (₹3,708 Cr).
  • Established history (12+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: High.
  • 5Y return: 15.15% (bottom quartile).
  • 3Y return: 15.86% (bottom quartile).
  • 1Y return: 17.49% (top quartile).
  • Alpha: -2.82 (upper mid).
  • Sharpe: 0.63 (top quartile).
  • Information ratio: 0.29 (top quartile).

Franklin Build India Fund

  • Upper mid AUM (₹3,068 Cr).
  • Established history (16+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: High.
  • 5Y return: 26.59% (upper mid).
  • 3Y return: 26.05% (top quartile).
  • 1Y return: 3.69% (upper mid).
  • Alpha: 0.00 (upper mid).
  • Sharpe: -0.16 (upper mid).
  • Information ratio: 0.00 (upper mid).

Nippon India Power and Infra Fund

  • Highest AUM (₹7,301 Cr).
  • Oldest track record among peers (21 yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: High.
  • 5Y return: 26.93% (top quartile).
  • 3Y return: 25.89% (top quartile).
  • 1Y return: -0.51% (lower mid).
  • Alpha: -12.90 (bottom quartile).
  • Sharpe: -0.26 (bottom quartile).
  • Information ratio: 0.42 (top quartile).

Kotak Infrastructure & Economic Reform Fund

  • Lower mid AUM (₹2,376 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: High.
  • 5Y return: 26.06% (upper mid).
  • 3Y return: 20.51% (upper mid).
  • 1Y return: -3.71% (bottom quartile).
  • Alpha: -13.49 (bottom quartile).
  • Sharpe: -0.24 (lower mid).
  • Information ratio: -0.15 (bottom quartile).

SBI Infrastructure Fund

  • Upper mid AUM (₹4,771 Cr).
  • Established history (18+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: High.
  • 5Y return: 23.75% (upper mid).
  • 3Y return: 21.44% (upper mid).
  • 1Y return: -1.00% (bottom quartile).
  • Alpha: -12.53 (bottom quartile).
  • Sharpe: -0.35 (bottom quartile).
  • Information ratio: -0.14 (lower mid).

Why Are These Top Performers?

Fincash has employed the following parameters for shortlisting the top performing funds:

  • Past Returns: Return analysis of last 3 years

  • Parameters & Weights: Information ratio with some modifications for our ratings and rankings

  • Qualitative & Quantitative Analysis: Quantitative measures like Expense Ratio, Sharpe Ratio, Sortino Ratio, Alpa, Beta, Upside Capture Ratio & Downside Capture Ratio, including fund age and the size of the fund has been considered. Qualitative analysis like the reputation of the fund along with the fund manager is one of the important parameters that you would see in the listed funds.

  • Asset Size: The minimum AUM criteria for equity funds are INR 100 Crores with some exceptions at times for new funds that are doing well in the market.

  • Performance with Respect to Benchmark: Peer average

Smart Tips to Invest in Sector Funds

Some of the important tips to consider while Investing in sector funds are:

  • Investment Tenure: Investors planning to invest in sector funds should stay invested for minimum 3 years.

  • Invest via a SIP: SIP or Systematic Investment plan is the most efficient way to invest in a Mutual Fund. They not only provide a systematic way of investing, but also ensures regular investment growth. Also, due to their investment style, they can prevent the pitfalls of equity investments. You can invest in a SIP with an amount as low as INR 500.

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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