Best Banking & Financial Funds
Concentrated on banks, NBFCs and insurers — a leveraged bet on the economy.
Data updated · 31 direct-growth funds ranked by a transparent 0–100 Smart Score
| ⚖ VS | Fund | Score ↓ | Verdict | 1Y | 3Y | 5Y | Sharpe | Sortino | Std Dev | Alpha | Beta | VR★ | P/E | Expense | AUM | Age |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Invesco India Fin Services Invesco | 88 | Strong Buy | 12.3% | 19.0% | 14.5% | 0.88 | 1.08 | 15.3 | 8.3 | 0.86 | 5★ | 18.7 | 0.92% | ₹1.8k Cr | 13.7y | |
| SBI BankIng And FIn Services SBI | 75 | Buy | 5.2% | 16.6% | 12.6% | 0.79 | 0.90 | 14.6 | 6.3 | 0.87 | — | 16.2 | 1.16% | ₹10.9k Cr | 11.5y | |
| DSP BankIng & FInancial Services DSP | 74 | Buy | 18.7% | — | — | 0.66 | 0.94 | 16.7 | 8.3 | 0.91 | — | 19.4 | 0.83% | ₹2.1k Cr | 2.8y | |
| Bandhan FInancial Services Bandhan | 73 | Buy | 6.7% | 16.2% | — | 0.62 | 0.87 | 15.5 | 4.8 | 0.87 | 4★ | 18.7 | 0.90% | ₹1.1k Cr | 3.1y | |
| Quant BFSI Quant | 70 | Buy | 20.9% | 22.4% | — | 1.09 | 1.12 | 18.6 | 16.0 | 0.71 | 5★ | 14.2 | 1.89% | ₹891 Cr | 3.2y | |
| Sundaram FIn Services Opp Sundaram | 70 | Buy | 12.6% | 14.2% | 14.2% | 0.61 | 0.63 | 16.7 | 4.3 | 0.99 | 4★ | 14.3 | 0.86% | ₹1.7k Cr | 13.7y | |
| Mirae Asset BankIng And FIn Services Mirae Asset | 67 | Buy | 10.1% | 13.7% | 13.0% | 0.59 | 0.64 | 15.8 | 3.7 | 0.94 | 5★ | 17.8 | 0.71% | ₹2.3k Cr | 5.7y | |
| HSBC FIn Services HSBC | 65 | Buy | 15.5% | — | — | 0.68 | 1.02 | 17.0 | 3.8 | 0.98 | — | — | 0.98% | ₹929 Cr | 1.5y | |
| Baroda BNP Paribas BankIng And FIn Services Pan B Baroda BNP Paribas | 60 | Hold | 9.0% | 15.4% | 12.4% | 0.60 | — | 15.8 | 3.7 | 0.97 | — | — | 1.08% | ₹437 Cr | 13.7y | |
| Kotak BankIng & FInancial Services Kotak | 58 | Hold | 10.1% | 13.7% | — | 0.52 | 0.61 | 16.0 | 2.4 | 0.99 | 4★ | 17.0 | 0.83% | ₹1.5k Cr | 3.5y | |
| Motilal Oswal Services Motilal Oswal | 56 | Hold | 15.1% | — | — | 0.51 | 0.73 | 15.5 | 9.8 | 0.74 | — | 33.1 | 1.41% | ₹124 Cr | 1.2y | |
| Nippon India BankIng And FInancial Services Nippon India | 54 | Hold | 6.9% | 12.8% | 13.4% | 0.40 | 0.56 | 15.3 | 2.1 | 0.91 | 4★ | 19.8 | 1.05% | ₹7.8k Cr | 13.7y | |
| HDFC BankIng & FIn Services HDFC | 52 | Hold | 10.4% | 13.2% | 12.3% | 0.42 | 0.58 | 15.8 | 2.5 | 0.94 | 4★ | 17.9 | 0.94% | ₹4.6k Cr | 5.2y | |
| Tata BankIng And FIn Services Tata | 51 | Hold | 8.5% | 12.8% | 12.4% | 0.40 | 0.56 | 15.4 | 2.3 | 0.90 | — | 19.0 | 0.91% | ₹3.2k Cr | 10.7y | |
| Edelweiss FIn Services Edelweiss | 51 | Hold | — | — | — | — | — | — | — | — | — | — | 0.96% | ₹275 Cr | 0.6y | |
| Bajaj Finserv Banking And Fin Services Bajaj Finserv | 50 | Hold | — | — | — | — | — | — | — | — | — | 18.6 | 1.08% | ₹503 Cr | 0.8y | |
| Kotak Services Kotak | 49 | Hold | 10.1% | 13.8% | — | 0.43 | 0.61 | 16.6 | 2.9 | 0.98 | — | 19.7 | 1.24% | ₹751 Cr | 0.6y | |
| UTI BankIng And FIn Services UTI | 47 | Hold | 7.6% | 13.3% | 11.6% | 0.53 | 0.60 | 15.6 | 2.7 | 0.93 | — | 18.3 | 1.36% | ₹1.4k Cr | 13.7y | |
| Canara Robeco BankIng And FIns Services Canara Robeco | 46 | Hold | — | — | — | — | — | — | — | — | — | 19.9 | 1.13% | ₹632 Cr | 0.5y | |
| MahIndra Manulife BankIng & FIn Services Mahindra Manulife | 43 | Avoid | 14.1% | — | — | — | — | — | — | — | — | 19.5 | 1.23% | ₹460 Cr | 1.2y | |
| Groww BankIng & FInancial Services Groww | 36 | Avoid | 16.8% | — | — | 0.40 | 0.56 | 16.0 | 2.1 | 0.89 | — | 19.0 | 1.19% | ₹83 Cr | 2.6y | |
| ITI BankIng And FInancial Services ITI | 35 | Avoid | 12.4% | 13.0% | — | 0.40 | 0.55 | 16.2 | 2.3 | 0.96 | 4★ | 18.3 | 1.19% | ₹386 Cr | 4.7y | |
| WhiteOak Capital BankIng & FInancial Services WhiteOak | 33 | Avoid | 8.0% | — | — | 0.37 | 0.51 | 16.2 | 1.4 | 0.93 | — | 16.3 | 1.08% | ₹653 Cr | 2.6y | |
| ABSL BankIng And FIn Services Aditya Birla Sun Life | 31 | Avoid | 8.6% | 11.2% | 10.8% | 0.29 | 0.41 | 15.9 | 0.6 | 0.94 | — | — | 1.15% | ₹3.6k Cr | 12.7y | |
| ICICI Pru BankIng And FIn Services ICICI Pru | 31 | Avoid | 0.8% | 10.5% | 9.7% | 0.29 | 0.41 | 13.6 | 0.4 | 0.81 | — | — | 1.20% | ₹11.2k Cr | 13.7y | |
| Motilal Oswal FIn Services Motilal Oswal | 18 | Avoid | — | — | — | — | — | — | — | — | — | 33.1 | 1.27% | ₹203 Cr | 0.6y | |
| Bank Of India BankIng & FIn Services Bank of India | 18 | Avoid | — | — | — | — | — | — | — | — | — | 16.2 | 1.61% | ₹274 Cr | 0.7y | |
| Helios FInancial Services Helios | 16 | Avoid | 5.1% | — | — | 0.06 | 0.08 | 17.3 | 1.7 | 1.02 | — | 20.9 | 1.09% | ₹203 Cr | 2.2y | |
| Taurus BankIng & FIn Services Taurus | 13 | Avoid | 2.2% | 9.3% | 9.6% | 0.17 | 0.23 | 15.7 | -1.5 | 0.94 | — | — | 1.84% | ₹11 Cr | 13.7y | |
| LIC MF BankIng And FIn Services LIC | 13 | Avoid | 8.2% | 9.1% | 9.6% | 0.15 | 0.21 | 15.9 | -1.6 | 0.93 | 3★ | 19.6 | 1.72% | ₹270 Cr | 11.5y | |
| Baroda BNP Paribas Services Baroda BNP Paribas | 2 | Avoid | — | — | — | — | — | — | — | — | 4★ | — | — | ₹0 Cr | 0.1y |
Banking & Financial funds — quick answers
›Which is the best Banking & Financial mutual fund right now?
Invesco India Fin Services currently ranks #1 of 31 Banking & Financial funds with a FundLens Smart Score of 88/100 (Strong Buy). It returned 19.0% over 3 years and 14.5% over 5 years at a 0.92% expense ratio (direct plan). Rankings are recomputed from data updated 03 Sept 2026.
›Which Banking & Financial fund has the best risk-adjusted returns?
Quant BFSI leads the category on the Sortino ratio at 1.12 (Sharpe 1.09) — meaning it has delivered the most return per unit of downside risk among Banking & Financial funds.
›Which Banking & Financial fund has the lowest expense ratio?
Mirae Asset BankIng And FIn Services charges 0.71% a year (direct plan) — the lowest in the category. Lower fees compound in your favour over long holding periods.
›Which is the smallest Banking & Financial fund by AUM?
Baroda BNP Paribas Services manages ₹0 Cr, the smallest in the category. Smaller funds can be nimbler, but check track record and costs before treating size alone as an edge.
›How long should I stay invested in a Banking & Financial fund?
Banking & Financial funds carry very high risk, so a horizon of 7+ years is generally sensible. Concentrated on banks, NBFCs and insurers — a leveraged bet on the economy. This is research, not investment advice.
Want these answers conversationally? Ask FundLens · New to the ratios? Sharpe vs Sortino, explained