Get a free quote
Scan the QR Code to download the ET Money app
- To scan the QR code you can use a QR code scanner app or your smartphone camera using Google lens.
- After downloading the app, explore our products to help you live your choices.
Mutual Funds
Genius
Insurance
Calculators
Great! You have sucessfully subscribed for newsletters for investments
Subscribed email:
Banking Sector Funds
- Average Return 26.66%
- No of Funds 13
What is Sectoral-Banking Mutual Fund
Sectoral mutual funds are equity funds that put the entire money in one sector. For instance, an IT sector fund invests only in IT companies, a banking sector fund only in banks and so on. This one sector only exposure make them one of the riskiest mutual 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 last 5 year returns
13 funds
ShowReturns for
via
Min SIP
₹ 5,000
5 Yrs Return
+ 20.1 % p.a. + 17.69 % p.a. + 36.85 % + 15.49 % p.a. + 13.41 % p.a. + 37.4 % + 20.84 % p.a. + 33.54 %
Fund Size
₹824 Crs
Return (p.a)
+ 19.53% + 62.53% + 16.01% + 131.36% + 11.77% + 11.77% + 21.77% + 37.33% + 5.64% + 5.64% + 22.09% + 23.82% + 15.08% + 15.08% + 1.47% + 1.47%
ETM Rank
#2 of 11
Fund Size
₹4,527 Crs
Return (p.a)
+ 18.80% + 59.67% + 15.24% + 122.01% + 10.56% + 10.56% + 23.10% + 39.87% + 4.48% + 4.48% + 20.05% + 21.54% + 12.85% + 12.85% + 0.55% + 0.55%
ETM Rank
#6 of 11
Fund Size
₹1,625 Crs
Return (p.a)
+ 18.20% + 57.35% N.A. N.A. + 12.16% + 12.16% + 20.37% + 34.70% + 6.67% + 6.67% + 21.80% + 23.49% + 15.33% + 15.33% + 2.34% + 2.34%
ETM Rank
#1 of 11
Fund Size
₹2,860 Crs
Return (p.a)
+ 17.34% + 54.08% N.A. N.A. + 13.12% + 13.12% + 19.98% + 33.97% + 6.71% + 6.71% + 19.41% + 20.83% + 14.79% + 14.79% + 2.14% + 2.14%
ETM Rank
#8 of 11
Fund Size
₹7,062 Crs
Return (p.a)
+ 15.50% + 47.29% + 15.28% + 122.43% + 8.60% + 8.60% + 17.18% + 28.80% + 3.47% + 3.47% + 14.90% + 15.87% + 10.35% + 10.35% + 0.51% + 0.51%
ETM Rank
#5 of 11
Fund Size
₹559 Crs
Return (p.a)
+ 15.21% + 46.24% + 15.44% + 124.35% + 7.48% + 7.48% + 15.71% + 26.14% + 2.01% + 2.01% + 14.33% + 15.25% + 9.54% + 9.54% -1.30% -1.30%
ETM Rank
#4 of 11
Fund Size
₹4,364 Crs
Return (p.a)
+ 14.72% + 44.51% N.A. N.A. + 8.10% + 8.10% + 14.36% + 23.74% + 3.21% + 3.21% + 12.91% + 13.70% + 8.45% + 8.45% -0.43% -0.43%
ETM Rank
#3 of 11
Fund Size
₹931 Crs
Return (p.a)
+ 13.83% + 41.39% + 11.99% + 86.54% + 7.43% + 7.43% + 16.43% + 27.44% + 2.76% + 2.76% + 14.62% + 15.56% + 8.94% + 8.94% -0.46% -0.46%
ETM Rank
#11 of 11
Unranked
Fund Size
₹541 Crs
Return (p.a)
N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.
ETM Rank
Unranked
Fund Size
₹2,858 Crs
Return (p.a)
N.A. N.A.N.A. N.A. + 9.07% + 9.07% N.A. N.A. + 3.80% + 3.80% + 18.26% + 19.56% + 12.02% + 12.02% + 0.20% + 0.20%
ETM Rank
Unranked
Fund Size
₹667 Crs
Return (p.a)
N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A. + 2.05% + 2.05% N.A. N.A.N.A. N.A. -0.85% -0.85%
ETM Rank
Unranked
Fund Size
₹1,490 Crs
Return (p.a)
N.A. N.A.N.A. N.A. + 11.35% + 11.35% N.A. N.A. + 5.79% + 5.79% + 19.34% + 20.75% + 13.70% + 13.70% + 2.17% + 2.17%
ETM Rank
Unranked
Unranked
Fund Size
NA
Return (p.a)
N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A. N.A. + 7.10% + 7.10%
ETM Rank
UnrankedSectoral-Banking 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 19.53% over the past 5 Years
Genius High Growth Portfolio strategies would have potentially delivered up to 20.1% returns! Know More 
SIP Calculator
Mutual Fund Calculator
Lumpsum CalculatorHow to invest in Sectoral-Banking Funds?
It is quite easy to invest in Sectoral-Banking mutual funds on ET Money. Here are the steps that you have to follow.
- Register online on ET Money app or website
- Head to Mutual Funds sections and choose the Sectoral-Banking fund you want to invest in.
- Click on invest and choose the amount and mode of investment (SIP or Lumpsum)
- Provide your KYC details (Pan number, Bank details) and complete your investment.
Frequently Asked Questions
Which are the best Sectoral-Banking Mutual Funds to invest in 2023?
These are top 5 Sectoral-Banking funds you can invest in 2023
| Fund Name | Fund Category | ETM Rank | Consistency | 5 Year Return (Annualized) |
|---|---|---|---|---|
| Sundaram Financial Services Opportunities Fund | Equity | Unranked | 14.53 % p.a. | |
| Nippon India Banking & Financial Services Fund | Equity | Unranked | 10.67 % p.a. | |
| Tata Banking and Financial Services Fund | Equity | Unranked | 13.3 % p.a. | |
| Aditya Birla Sun Life Banking & Financial Services Fund | Equity | Unranked | 10.09 % p.a. | |
| ICICI Prudential Banking and Financial Services Fund | Equity | Unranked | 10.47 % 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 11.15% p.a. returns in the last 5 years. Their 3 and 10 year annualized returns are 26.66% and 18.08% 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.
