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Banking Sector Funds
- Average Return 20.99%
- No of Funds 16
What is Sectoral-Banking Mutual Fund
Banking sector funds are a type of equity mutuals fund that invest exclusively in banking and financial services companies. These funds are highly sensitive to interest rate changes, economic cycles, and regulatory policies affecting the banking industry. Since they focus on a single sector, they carry higher risk compared to diversified equity funds.
Advantages of Sectoral-Banking Funds
- Lack of diversification means if the sector faces challenging times, so will your investments
- Not more than 10% of your portfolio should be allocated to this fund category
- If you invest, be prepared to stay invested for at least 7+ year
Top schemes of Sectoral-Banking Mutual Funds sorted by Returns
16 funds
ShowReturns for
via
#NA of NA
ETM Rank: Genius only 
Fund Size
₹6,566 Crs
Return (p.a)
+ 130.9%+ 7.12% + 100.93%+ 12.06% + 39.64%+ 10.15% + 20.87%+ 10.88% + 22.6%+ 38.95% + 24.04%+ 81.27%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹1,415 Crs
Return (p.a)
+ 162.07%+ 8.24% + 113.28%+ 13.17% + 42.55%+ 10.82% + 18.46%+ 9.66% + 23.66%+ 40.98% + 23.29%+ 78.01%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹1,208 Crs
Return (p.a)
+ 116.11%+ 6.54% + 84.72%+ 10.52% + 27.75%+ 7.33% + 16.78%+ 8.79% + 24.85%+ 43.3% + 22.77%+ 75.81%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹7,111 Crs
Return (p.a)
+ 88.43%+ 5.35% + 81.52%+ 10.2% + 32.9%+ 8.57% + 20.15%+ 10.51% + 23.63%+ 40.93% + 21.5%+ 70.49%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹2,548 Crs
Return (p.a)
+ 146.52%+ 7.7% + 111.23%+ 12.99% + 43.32%+ 11.0% + 23.51%+ 12.22% + 23.01%+ 39.74% + 21.34%+ 69.83%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹1,211 Crs
Return (p.a)
+ 106.21%+ 6.13% + 103.89%+ 12.33% + 40.37%+ 10.32% + 21.76%+ 11.33% + 21.52%+ 36.89% + 20.75%+ 67.42%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹3,248 Crs
Return (p.a)
+ 118.04%+ 6.62% + 104.1%+ 12.35% + 38.63%+ 9.92% + 18.26%+ 9.55% + 19.97%+ 33.98% + 20.15%+ 65.03%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹9,008 Crs
Return (p.a)
+ 97.6%+ 5.76% + 78.56%+ 9.91% + 31.63%+ 8.27% + 18.3%+ 9.57% + 19.55%+ 33.18% + 19.68%+ 63.14%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹967 Crs
Return (p.a)
+ 99.1%+ 5.82% + 81.2%+ 10.17% + 27.95%+ 7.38% + 17.28%+ 9.05% N.A.N.A. N.A.N.A.
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹1,136 Crs
Return (p.a)
+ 79.23%+ 4.91% + 83.74%+ 10.42% + 38.7%+ 9.94% + 26.07%+ 13.5% N.A.N.A. N.A.N.A.
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹3,722 Crs
Return (p.a)
+ 147.95%+ 7.75% + 103.33%+ 12.28% + 37.69%+ 9.7% + 18.74%+ 9.8% + 20.91%+ 35.73% N.A.N.A.
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹540 Crs
Return (p.a)
+ 94.38%+ 5.62% N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A.
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹1,120 Crs
Return (p.a)
+ 89.79%+ 5.41% + 95.35%+ 11.54% + 34.74%+ 9.01% + 18.99%+ 9.92% N.A.N.A. N.A.N.A.
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹1,841 Crs
Return (p.a)
+ 101.67%+ 5.93% + 103.72%+ 12.31% + 38.93%+ 9.99% + 20.21%+ 10.54% + 21.66%+ 37.14% N.A.N.A.
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹560 Crs
Return (p.a)
+ 100.51%+ 5.88% + 57.9%+ 7.71% + 17.36%+ 4.72% -1.34% -0.72% N.A.N.A. N.A.N.A.
ETM Rank
#NA of NA
Genius only
Show all funds
Returns Calculator
See what your investment would have yielded in
Invested ₹ 6 Lakh
Profit ₹ 3.33 Lakh
₹ 9.33 Lakh
This fund has generated an XIRR of 24.04% over the past 5 Years
SIP Calculator
Mutual Fund Calculator
Lumpsum CalculatorHow to invest in Sectoral-Banking Funds?
Investing in Sectoral-Banking mutual funds on the ET Money app is simple. Follow these steps:
For Desktop Users:
- Click on the "Invest" button next to the scheme in the Sectoral-Banking fund list shown above.
- Scan the QR code to download the app.
For Mobile Users:
- Tap on the "Invest" button in the Sectoral-Banking fund list to download the app.
- Open the app, sign up, and complete your one-time KYC process, or log in if you're already registered.
- Search for the mutual fund you want to invest in and choose your investment mode (Lump sum investment or SIP).
- Enter your investment amount.
- Fill in the required details, including your bank account for payment, and confirm.
All set! Your investment is complete.
Frequently Asked Questions
Which are the best Sectoral-Banking Mutual Funds to invest in 2025?
These are top 5 Sectoral-Banking funds you can invest in 2025
| Fund Name | Fund Category | Consistency | 5.0 Year Return (Annualized) |
|---|---|---|---|
| Kotak Banking & Financial Services Fund | Equity | NA | |
| Bandhan Financial Services Fund | Equity | NA | |
| Invesco India Financial Services Fund | Equity | 27.14 % p.a. | |
| HDFC Banking & Financial Services Fund | Equity | NA | |
| Aditya Birla Sun Life Banking & Financial Services Fund | Equity | 27.66 % p.a. |
How long should I stay invested in Sectoral-Banking Mutual Funds?
Since Sectoral-Banking Mutual Funds are equity funds i.e. they invest in stocks of companies, you need to stay invested for at least 5 years.
Where do Sectoral-Banking Mutual Funds invest?
Sectoral Funds have to invest at least 80% of their assets in stocks of companies operating in a particular sector. For instance, a Banking Sectoral Fund will invest only in stocks of banks, NBFCs, and other financial institutions. Due to this narrow sector focus, these funds lack diversification and therefore carry high risk.
Are Sectoral-Banking Mutual Funds high risk?
Sectoral-Banking Mutual Funds invest in equities, so in a short term, they can be volatile. However, over a long-term, the risk comes down substantially.
What kind of returns can I earn from Sectoral-Banking ?
Sectoral-Banking Funds have on an average delivered 27.46% p.a. returns in the last 5 years. Their 3 and 10 year annualized returns are 20.99% and 15.0% p.a.
Should I invest in Sectoral-Banking Mutual Funds?
Sectoral Funds are some of the riskiest Mutual Funds. Since these funds invest only in one sector, there is no sector diversification, and that is the main reason for their high risk. If the sector goes down, all the stocks in the portfolio will go down with nothing to cushion this fall. These funds are suitable only for experienced investors, and even then, not more than 10% of the portfolio should be in these funds.
