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 | 6.6% | 17.4% | 13.8% | 0.94 | 0.93 | 15.2 | 8.1 | 0.86 | 5★ | 19.6 | 0.94% | ₹1.9k Cr | 13.7y | |
| SBI BankIng And FIn Services SBI | 73 | Buy | 0.8% | 14.8% | 12.3% | 0.83 | 0.74 | 14.4 | 5.7 | 0.85 | — | 16.1 | 1.20% | ₹10.9k Cr | 11.6y | |
| Bandhan FInancial Services Bandhan | 71 | Buy | 2.6% | 14.9% | — | 0.75 | 0.77 | 16.1 | 5.4 | 0.91 | 4★ | 18.4 | 0.96% | ₹1.1k Cr | 3.2y | |
| Baroda BNP Paribas Services Baroda BNP Paribas | 71 | Buy | — | — | — | — | — | — | — | — | 4★ | 21.8 | 0.54% | ₹623 Cr | 0.1y | |
| Quant BFSI Quant | 70 | Buy | 16.9% | 22.3% | — | 0.97 | 1.15 | 18.4 | 12.2 | 0.76 | 5★ | 12.3 | 1.89% | ₹925 Cr | 3.3y | |
| Mirae Asset BankIng And FIn Services Mirae Asset | 70 | Buy | 4.9% | 12.2% | 12.5% | 0.62 | 0.51 | 15.6 | 2.8 | 0.94 | 4★ | 18.6 | 0.72% | ₹2.4k Cr | 5.8y | |
| DSP BankIng & FInancial Services DSP | 70 | Buy | 12.5% | — | — | 0.62 | 0.87 | 16.7 | 8.3 | 0.91 | — | 19.2 | 0.78% | ₹2.2k Cr | 2.8y | |
| Sundaram FIn Services Opp Sundaram | 68 | Buy | 7.8% | 12.5% | 13.8% | 0.62 | 0.50 | 16.6 | 3.0 | 0.99 | 4★ | 14.3 | 0.92% | ₹1.7k Cr | 13.7y | |
| HSBC FIn Services HSBC | 65 | Buy | 10.7% | — | — | 0.64 | 0.96 | 16.9 | 4.5 | 0.98 | — | — | 0.96% | ₹963 Cr | 1.6y | |
| Baroda BNP Paribas BankIng And FIn Services Pan B Baroda BNP Paribas | 60 | Hold | 4.5% | 14.1% | 11.8% | 0.73 | — | 15.7 | 4.5 | 0.95 | — | — | 1.08% | ₹460 Cr | 13.7y | |
| Motilal Oswal Services Motilal Oswal | 58 | Hold | 13.3% | — | — | 0.59 | 0.84 | 15.3 | 11.9 | 0.74 | — | 33.0 | 1.34% | ₹132 Cr | 1.3y | |
| Kotak BankIng & FInancial Services Kotak | 56 | Hold | 5.1% | 12.1% | — | 0.62 | 0.47 | 16.1 | 2.6 | 1.00 | 4★ | 16.9 | 0.82% | ₹1.6k Cr | 3.6y | |
| Nippon India BankIng And FInancial Services Nippon India | 55 | Hold | 2.6% | 11.5% | 13.1% | 0.33 | 0.46 | 15.3 | 2.6 | 0.91 | 4★ | 19.1 | 1.05% | ₹7.9k Cr | 13.7y | |
| Tata BankIng And FIn Services Tata | 51 | Hold | 4.0% | 11.7% | 12.0% | 0.57 | 0.47 | 15.8 | 2.0 | 0.95 | — | 19.6 | 0.96% | ₹3.3k Cr | 10.8y | |
| Groww BankIng & FInancial Services Groww | 50 | Hold | 14.2% | — | — | 0.43 | 0.60 | 16.0 | 3.2 | 0.89 | — | 17.3 | 1.09% | ₹91 Cr | 2.6y | |
| HDFC BankIng & FIn Services HDFC | 49 | Hold | 5.3% | 11.7% | 11.8% | 0.58 | 0.46 | 16.2 | 2.1 | 0.98 | 4★ | 17.9 | 0.96% | ₹4.7k Cr | 5.2y | |
| UTI BankIng And FIn Services UTI | 46 | Hold | 2.8% | 12.1% | 11.1% | 0.61 | 0.49 | 15.7 | 2.6 | 0.94 | — | 17.3 | 1.38% | ₹1.5k Cr | 13.7y | |
| Canara Robeco BankIng And FIns Services Canara Robeco | 46 | Hold | — | — | — | — | — | — | — | — | — | 20.2 | 1.12% | ₹652 Cr | 0.6y | |
| Edelweiss FIn Services Edelweiss | 46 | Hold | — | — | — | — | — | — | — | — | — | — | 0.98% | ₹275 Cr | 0.6y | |
| Kotak Services Kotak | 44 | Avoid | 5.1% | 12.1% | — | 0.34 | 0.47 | 16.6 | 3.0 | 0.98 | — | 18.9 | 1.27% | ₹757 Cr | 0.6y | |
| Mahindra Manulife Banking & Fin Services Mahindra Manulife | 43 | Avoid | 8.4% | — | — | — | — | — | — | — | — | 20.1 | 1.20% | ₹477 Cr | 1.2y | |
| Bajaj Finserv Banking And Fin Services Bajaj Finserv | 40 | Avoid | — | — | — | — | — | — | — | — | — | 18.3 | 1.14% | ₹499 Cr | 0.9y | |
| WhiteOak Capital BankIng & FInancial Services WhiteOak | 36 | Avoid | 3.1% | — | — | 0.33 | 0.45 | 16.2 | 1.5 | 0.93 | — | 17.5 | 1.06% | ₹665 Cr | 2.6y | |
| ITI BankIng And FInancial Services ITI | 31 | Avoid | 7.0% | 11.4% | — | 0.30 | 0.42 | 16.3 | 2.4 | 0.96 | 3★ | 17.5 | 1.12% | ₹388 Cr | 4.8y | |
| ABSL BankIng And FIn Services Aditya Birla Sun Life | 31 | Avoid | 2.6% | 9.6% | 10.3% | 0.19 | 0.27 | 16.0 | 0.6 | 0.94 | — | — | 1.15% | ₹3.7k Cr | 12.8y | |
| ICICI Pru BankIng And FIn Services ICICI Pru | 31 | Avoid | -2.9% | 9.0% | 9.3% | 0.18 | 0.26 | 13.6 | 0.3 | 0.81 | — | — | 1.23% | ₹11.3k Cr | 13.7y | |
| Motilal Oswal FIn Services Motilal Oswal | 20 | Avoid | — | — | — | — | — | — | — | — | — | 33.0 | 1.27% | ₹217 Cr | 0.6y | |
| Helios FInancial Services Helios | 18 | Avoid | 1.4% | — | — | 0.06 | 0.09 | 17.3 | 2.6 | 1.02 | — | 22.6 | 1.14% | ₹211 Cr | 2.2y | |
| LIC MF BankIng And FIn Services LIC | 16 | Avoid | 3.0% | 7.8% | 9.1% | 0.08 | 0.12 | 16.0 | -1.1 | 0.93 | 3★ | 22.6 | 1.64% | ₹275 Cr | 11.5y | |
| Bank Of India BankIng & FIn Services Bank of India | 13 | Avoid | — | — | — | — | — | — | — | — | — | 16.9 | 1.65% | ₹273 Cr | 0.7y | |
| Taurus BankIng & FIn Services Taurus | 9 | Avoid | -3.1% | 7.1% | 8.7% | 0.04 | 0.06 | 15.7 | -1.9 | 0.94 | — | — | 1.84% | ₹11 Cr | 13.7y |
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 17.4% over 3 years and 13.8% over 5 years at a 0.94% expense ratio (direct plan). Rankings are recomputed from data updated 20 Sept 2026.
›Which Banking & Financial fund has the best risk-adjusted returns?
Quant BFSI leads the category on the Sortino ratio at 1.15 (Sharpe 0.97) — 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?
Baroda BNP Paribas Services charges 0.54% 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 ₹11 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