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 | 87 | Strong Buy | 1.0% | 16.0% | 12.4% | 0.67 | 0.80 | 16.1 | 6.5 | 0.88 | 5★ | 18.7 | 0.96% | ₹1.8k Cr | 13.8y | |
| SBI BankIng And FIn Services SBI | 78 | Strong Buy | -2.5% | 15.1% | 11.2% | 0.62 | 0.76 | 14.8 | 5.0 | 0.86 | — | 16.1 | 1.19% | ₹10.4k Cr | 11.6y | |
| DSP BankIng & FInancial Services DSP | 72 | Buy | 3.9% | — | — | 0.46 | 0.65 | 16.9 | 6.3 | 0.92 | — | 17.7 | 0.81% | ₹2.0k Cr | 2.9y | |
| Quant BFSI Quant | 70 | Buy | 8.2% | 19.7% | — | 0.81 | 0.95 | 18.8 | 11.5 | 0.77 | 5★ | 12.2 | 1.95% | ₹900 Cr | 3.3y | |
| Bandhan FInancial Services Bandhan | 67 | Buy | -2.9% | 13.6% | — | 0.54 | 0.64 | 16.7 | 4.5 | 0.92 | 5★ | 17.1 | 1.00% | ₹1.0k Cr | 3.2y | |
| Motilal Oswal Services Motilal Oswal | 64 | Buy | 8.3% | — | — | 0.45 | 0.64 | 15.3 | 10.3 | 0.74 | — | 32.2 | 1.34% | ₹136 Cr | 1.3y | |
| Mirae Asset BankIng And FIn Services Mirae Asset | 63 | Buy | -0.9% | 11.8% | 11.1% | 0.42 | 0.47 | 16.4 | 2.2 | 0.96 | 4★ | 17.5 | 0.78% | ₹2.2k Cr | 5.9y | |
| HDFC BankIng & FIn Services HDFC | 61 | Hold | 1.2% | 11.9% | 10.8% | 0.41 | 0.48 | 16.7 | 2.0 | 0.98 | 4★ | 16.9 | 0.98% | ₹4.4k Cr | 5.3y | |
| Sundaram FIn Services Opp Sundaram | 59 | Hold | 2.7% | 11.8% | 12.4% | 0.40 | 0.43 | 17.1 | 2.1 | 0.99 | 4★ | 13.4 | 0.93% | ₹1.6k Cr | 13.8y | |
| Baroda BNP Paribas BankIng And FIn Services Pan B Baroda BNP Paribas | 58 | Hold | -1.7% | 13.4% | 10.2% | 0.52 | — | 16.4 | 3.8 | 0.96 | — | — | 1.08% | ₹516 Cr | 13.8y | |
| HSBC FIn Services HSBC | 58 | Hold | 3.4% | — | — | 0.42 | 0.61 | 17.0 | 1.9 | 0.99 | — | — | 0.96% | ₹903 Cr | 1.6y | |
| Nippon India BankIng And FInancial Services Nippon India | 56 | Hold | -3.1% | 10.9% | 11.3% | 0.37 | 0.40 | 15.9 | 1.2 | 0.94 | 4★ | 17.6 | 1.07% | ₹7.4k Cr | 13.8y | |
| UTI BankIng And FIn Services UTI | 55 | Hold | -1.3% | 12.3% | 10.2% | 0.45 | 0.50 | 16.1 | 2.6 | 0.94 | — | 16.4 | 1.45% | ₹1.3k Cr | 13.8y | |
| Kotak BankIng & FInancial Services Kotak | 54 | Hold | -0.5% | 11.8% | — | 0.40 | 0.44 | 16.8 | 1.8 | 1.01 | 4★ | 16.9 | 0.80% | ₹1.4k Cr | 3.6y | |
| Edelweiss FIn Services Edelweiss | 50 | Hold | — | — | — | — | — | — | — | — | — | — | 0.98% | ₹274 Cr | 0.7y | |
| Canara Robeco BankIng And FIns Services Canara Robeco | 50 | Hold | — | — | — | — | — | — | — | — | — | 18.8 | 1.08% | ₹624 Cr | 0.6y | |
| Tata BankIng And FIn Services Tata | 44 | Avoid | -2.8% | 10.7% | 10.7% | 0.36 | 0.37 | 16.6 | 1.1 | 0.97 | — | 18.6 | 0.93% | ₹3.1k Cr | 10.8y | |
| Mahindra Manulife Banking & Fin Services Mahindra Manulife | 44 | Avoid | 1.6% | — | — | — | — | — | — | — | — | 18.6 | 1.16% | ₹445 Cr | 1.3y | |
| Kotak Services Kotak | 44 | Avoid | -0.5% | 11.8% | — | 0.32 | 0.44 | 16.7 | 1.6 | 0.99 | — | 18.0 | 1.26% | ₹711 Cr | 0.7y | |
| Bajaj Finserv Banking And Fin Services Bajaj Finserv | 42 | Avoid | — | — | — | — | — | — | — | — | — | 17.2 | 1.12% | ₹469 Cr | 0.9y | |
| ITI BankIng And FInancial Services ITI | 41 | Avoid | 0.4% | 11.1% | — | 0.36 | 0.39 | 16.5 | 1.2 | 0.98 | 3★ | 17.0 | 1.08% | ₹362 Cr | 4.9y | |
| WhiteOak Capital BankIng & FInancial Services WhiteOak | 40 | Avoid | -0.8% | — | — | 0.24 | 0.33 | 16.2 | 0.7 | 0.94 | — | 16.3 | 1.08% | ₹626 Cr | 2.7y | |
| Baroda BNP Paribas Services Baroda BNP Paribas | 40 | Avoid | — | — | — | — | — | — | — | — | — | 20.4 | — | ₹573 Cr | 0.2y | |
| ICICI Pru BankIng And FIn Services ICICI Pru | 35 | Avoid | -5.8% | 9.6% | 8.3% | 0.29 | 0.32 | 14.7 | -0.0 | 0.88 | — | — | 1.25% | ₹10.8k Cr | 13.8y | |
| Groww BankIng & FInancial Services Groww | 33 | Avoid | 5.5% | — | — | 0.23 | 0.32 | 16.1 | 0.7 | 0.90 | — | 18.6 | 1.26% | ₹107 Cr | 2.7y | |
| ABSL BankIng And FIn Services Aditya Birla Sun Life | 31 | Avoid | -2.1% | 9.2% | 9.2% | 0.17 | 0.23 | 16.1 | -0.8 | 0.94 | — | — | 1.15% | ₹3.4k Cr | 12.8y | |
| Motilal Oswal FIn Services Motilal Oswal | 18 | Avoid | — | — | — | — | — | — | — | — | — | 32.2 | 1.29% | ₹209 Cr | 0.7y | |
| Taurus BankIng & FIn Services Taurus | 16 | Avoid | -6.3% | 8.0% | 8.0% | 0.10 | 0.13 | 15.8 | -2.0 | 0.94 | — | — | 1.84% | ₹10 Cr | 13.8y | |
| Helios FInancial Services Helios | 14 | Avoid | -5.2% | — | — | -0.07 | -0.09 | 17.3 | 1.0 | 1.02 | — | 22.2 | 1.15% | ₹196 Cr | 2.3y | |
| Bank Of India BankIng & FIn Services Bank of India | 13 | Avoid | — | — | — | — | — | — | — | — | — | 15.3 | 1.68% | ₹249 Cr | 0.8y | |
| LIC MF BankIng And FIn Services LIC | 12 | Avoid | -4.8% | 6.5% | 7.3% | 0.00 | 0.00 | 16.3 | -3.5 | 0.94 | 2★ | 20.5 | 1.65% | ₹256 Cr | 11.6y |
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 87/100 (Strong Buy). It returned 16.0% over 3 years and 12.4% over 5 years at a 0.96% expense ratio (direct plan). Rankings are recomputed from data updated 18 Oct 2026.
›Which Banking & Financial fund has the best risk-adjusted returns?
Quant BFSI leads the category on the Sortino ratio at 0.95 (Sharpe 0.81) — 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 0.78% 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?
Taurus BankIng & FIn Services manages ₹10 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