Best Banking Mutual Funds English

Best Banking Mutual Funds

The table below shows the Best Banking Mutual Funds based on AUM, NAV, and minimum SIP.

NameAUM (Cr)Minimum SIP (Rs)NAV (Rs)
ICICI Pru Banking & Fin Serv Fund7446.67100.0115.74
Nippon India Banking & Financial Services Fund5192.471500.0538.28
SBI Banking & Financial Services Fund4827.611000.034.95
HDFC Banking & Financial Services Fund3156.811500.014.38
Aditya Birla SL Banking & Financial Services Fund3062.06100.055.4
Tata Banking & Financial Services Fund1938.52150.039.3
Mirae Asset Banking and Financial Services Fund1601.62100.017.04
Sundaram Fin Serv Opp Fund1085.15100.095.89
UTI Banking and Financial Services Fund1002.3100.0171.47
Kotak Banking & Financial Services Fund821.96100.012.47

Banking mutual funds are investment vehicles that primarily allocate their assets to stocks or bonds of banking and financial institutions. These funds expose investors to the banking sector’s performance and can include various financial services companies such as banks, insurance companies, and other related firms.

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Banking Sector Mutual Funds

The table below shows the Banking Sector Mutual Funds based on the lowest to highest expense ratio.

NameExpense Ratio %
Baroda BNP Paribas Banking and PSU Bond Fund0.39
ITI Banking & Financial Services Fund0.44
Tata Banking & Financial Services Fund0.51
Bandhan Financial Services Fund0.6
HDFC Banking & Financial Services Fund0.6
Mirae Asset Banking and Financial Services Fund0.6
DSP Banking & Financial Services Fund0.67
Kotak Banking & Financial Services Fund0.69
SBI Banking & Financial Services Fund0.76
Sundaram Fin Serv Opp Fund0.79

Best Banking Sector Mutual Funds In India

The table below shows Best Banking Sector Mutual Funds In India based on Highest 3Y CAGR.

NameCAGR 3Y (Cr)
Nippon India Banking & Financial Services Fund22.8
Sundaram Fin Serv Opp Fund20.52
Invesco India Financial Services Fund18.26
Aditya Birla SL Banking & Financial Services Fund17.0
Mirae Asset Banking and Financial Services Fund16.62
Tata Banking & Financial Services Fund16.44
UTI Banking and Financial Services Fund16.0
LIC MF Banking & Financial Services Fund15.77
ICICI Pru Banking & Fin Serv Fund15.68
Taurus Banking & Fin Serv Fund14.77

Banking Sector Mutual Funds India

The table below shows Banking Sector Mutual Funds India based on exit load i.e the fee that the AMC charges investors at the time of exiting or redeeming their fund units.

NameExit Load %
Baroda BNP Paribas Banking and PSU Bond Fund0.0
DSP Banking & Financial Services Fund0.0
Tata Banking & Financial Services Fund0.25
SBI Banking & Financial Services Fund0.5
Taurus Banking & Fin Serv Fund0.5
Aditya Birla SL Banking & Financial Services Fund1.0
Sundaram Fin Serv Opp Fund1.0
Nippon India Banking & Financial Services Fund1.0
Mirae Asset Banking and Financial Services Fund1.0
LIC MF Banking & Financial Services Fund1.0

Top 5 Banking Sector Mutual Funds

The below table shows Top 5 Banking Sector Mutual Funds based on Absolute 1 Year Return and AMC.

NameAbsolute Returns – 1Y %
Sundaram Fin Serv Opp Fund32.54
Invesco India Financial Services Fund31.35
Aditya Birla SL Banking & Financial Services Fund23.52
Nippon India Banking & Financial Services Fund23.17
Tata Banking & Financial Services Fund22.21
HDFC Banking & Financial Services Fund22.19
SBI Banking & Financial Services Fund22.01
UTI Banking and Financial Services Fund21.73
Mirae Asset Banking and Financial Services Fund21.43
Baroda BNP Paribas Banking and Fin Serv Fund21.43

Best Financial Mutual Funds

The below table shows Best Financial Mutual Funds based on Absolute 6-month Return and AMC.

NameAbsolute Returns – 6M %
Invesco India Financial Services Fund17.06
Sundaram Fin Serv Opp Fund16.37
Baroda BNP Paribas Banking and Fin Serv Fund11.67
SBI Banking & Financial Services Fund10.98
Nippon India Banking & Financial Services Fund10.3
UTI Banking and Financial Services Fund10.12
Tata Banking & Financial Services Fund9.31
Aditya Birla SL Banking & Financial Services Fund8.76
HDFC Banking & Financial Services Fund8.74
Mirae Asset Banking and Financial Services Fund7.94

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Best Banking Mutual Funds – FAQ

What are the Best Banking Mutual Funds?

Best Banking Mutual Funds #1: ICICI Pru Banking & Fin Serv Fund

Best Banking Mutual Funds #2: Nippon India Banking & Financial Services Fund

Best Banking Mutual Funds #3: SBI Banking & Financial Services Fund

Best Banking Mutual Funds #4: HDFC Banking & Financial Services Fund

Best Banking Mutual Funds #5: Aditya Birla SL Banking & Financial Services Fund

These funds are listed based on the Highest AUM.

What are the Top Banking Sector Funds?

The top 5  Focused Equity Funds, determined by their 3-year Compound Annual Growth Rate (CSGR), include Nippon India Banking & Financial Services Fund, Sundaram Fin Serv Opp Fund, Invesco India Financial Services Fund, Aditya Birla SL Banking & Financial Services Fund, Mirae Asset Banking and Financial Services Fund.

Are bank mutual funds safe?

Bank mutual funds can vary in safety depending on their investment holdings. While they are regulated and diversified, they are not risk-free. Safety depends on the fund’s assets and strategy.

Are banking sector mutual funds good?

Banking sector mutual funds can be good for investors seeking exposure to the financial industry. However, their performance depends on the health of the banking sector and market conditions, making them suitable for those with a high-risk tolerance and diversified portfolios.

Is it safe to invest in banking sector?

Investing in the banking sector can offer potential returns, but it carries risks tied to economic fluctuations, regulatory changes, and market conditions. Diversifying your portfolio can help manage these risks.

How to invest in bank mutual fund?

You can invest in bank mutual funds through Alice Blue Rise without any commission or brokerage. 

Introduction to Best Banking Mutual Funds

Best Banking Mutual Funds – AUM, NAV

ICICI Pru Banking & Fin Serv Fund

The ICICI Prudential Banking and Financial Services Direct Plan-Growth is an equity mutual fund offered by ICICI Prudential Mutual Fund. It comes with an exit load of 1.0% and has an expense ratio of 1.01%. Over the past 3 years, it has shown a Compound Annual Growth Rate (CAGR) of 15.68%. Furthermore, the fund manages significant assets, with its Assets Under Management (AUM) standing at ₹ 7,446.67 crore.

The distribution of shares in the company is as follows: Miscellaneous entities hold 5.68%, public banks have an 8.73% stake, insurance companies own 11.03%, specialized finance institutions hold 13.89%, and private banks have the majority with 56.15%.

Nippon India Banking & Financial Services Fund

The Nippon India Banking & Financial Services Fund Direct-Growth is an equity mutual fund offered by Nippon India Mutual Fund. This fund has an exit load of 1.0% and an expense ratio of 1.12%. Over the past 3 years, it has shown a Compound Annual Growth Rate (CAGR) of 22.8%. Furthermore, the fund manages a significant amount of assets, with its Assets Under Management (AUM) totaling ₹ 5,192.47 crore.

The breakdown of ownership in the company is as follows: Investment Banking & Brokerage accounts for 6.30%, insurance entities have a 6.92% stake, specialized finance institutions hold 11.38%, public banks own 11.53%, and private banks dominate with a significant 53.68% share.

SBI Banking & Financial Services Fund

The SBI Banking & Financial Services Fund Direct-Growth is an equity mutual fund offered by SBI Mutual Fund. It has an exit load of 0.5% and an expense ratio of 0.76%. Over the past 3 years, it has shown a Compound Annual Growth Rate (CAGR) of 14.7%. Furthermore, the fund manages a substantial amount of assets, with its Assets Under Management (AUM) totaling ₹ 4,827.61 crore.

The distribution of ownership in the company is as follows: Miscellaneous entities hold 4.76%, asset management firms possess 6.68%, public banks have an 11.14% stake, specialized finance institutions own 17.05%, and private banks constitute the majority with a substantial 48.27% share.

Banking Sector Mutual Funds – Expense Ratio

Baroda BNP Paribas Banking and PSU Bond Fund

The Baroda BNP Paribas Banking & PSU Bond Fund Direct – Growth is a debt mutual fund offered by Baroda BNP Paribas Mutual Fund. This fund does not have any exit load and has an expense ratio of 0.39. Over the past 3 years, it has shown a Compound Annual Growth Rate (CAGR) of 4.59%. The fund currently manages assets totaling ₹30.08 crore.

The distribution of shareholding in various sectors is as follows: Miscellaneous holds 10.63%, Consumer Finance accounts for 11.31%, Private Banks have a share of 11.67%, Public Banks hold 13.27%, and G-Sec holds the largest portion at 16.69%.

ITI Banking & Financial Services Fund

The ITI Banking and Financial Services Fund Direct – Growth, offered by ITI Mutual Fund, is an equity mutual fund scheme with an exit load of 1.0% and an expense ratio of 0.44%. Its 3-year Compound Annual Growth Rate (CAGR) is 0.0%, and it manages assets totaling ₹ 247.09 crore.

The breakdown of shareholding across different sectors is as follows: Home Financing constitutes 3.56%, Insurance holds 7.13%, Specialized Finance has a share of 10.51%, Public Banks account for 12.34%, and the majority, at 54.40%, is held by Private Banks.

Tata Banking & Financial Services Fund

The Tata Banking and Financial Services Fund Direct-Growth is an equity mutual fund offered by Tata Mutual Fund. It comes with an exit load of 0.25% and has an expense ratio of 0.51%. Over the past 3 years, it has shown a Compound Annual Growth Rate (CAGR) of 16.44%. Furthermore, the fund manages substantial assets, with its Assets Under Management (AUM) totaling ₹ 1938.52 crore.

The distribution of shareholding in different sectors is as follows: Insurance comprises 3.70%, Public Banks hold 5.49%, Specialized Finance accounts for 10.53%, Home Financing has 10.89%, and the majority, with 58.53%, belongs to Private Banks.

Best Banking Sector Mutual Funds In India  – 3Y CAGR

Sundaram Fin Serv Opp Fund

The Sundaram Financial Services Opportunities Fund Direct-Growth is an equity mutual fund offered by Sundaram Mutual Fund. It comes with an exit load of 1.0% and has an expense ratio of 0.79%. Over the past three years, it has delivered a Compound Annual Growth Rate (CAGR) of 20.52%. The fund currently manages assets worth ₹1,085.15 crore.

The distribution of shares in the company is as follows: Miscellaneous holds 6.44%, Specialized Finance owns 6.90%, Public Banks have an 8.81% stake, Consumer Finance holds 11.00%, and the majority, 55.69%, is owned by Private Banks.

Invesco India Financial Services Fund

The Invesco India Financial Services Fund Direct-Growth is an equity mutual fund offered by Invesco Mutual Fund. This fund has an exit load of 1.0% and an expense ratio of 1.08%. Over the past 3 years, it has shown a Compound Annual Growth Rate (CAGR) of 18.26%. Additionally, the fund manages a substantial amount of assets, with its Assets Under Management (AUM) totaling ₹ 667.42 crore.

The breakdown of share ownership in the company is as follows: Home Financing holds 3.63%, Investment Banking & Brokerage has a 7.06% stake, Public Banks own 10.84%, Specialized Finance holds 23.45%, and the majority, 40.62%, is held by Private Banks.

Aditya Birla SL Banking & Financial Services Fund

The Aditya Birla Sun Life Banking & Financial Services Fund Direct-Growth is an equity mutual fund offered by Aditya Birla Sun Life Mutual Fund. It comes with an exit load of 1.0% and has an expense ratio of 1.03%. Over the past 3 years, it has achieved a Compound Annual Growth Rate (CAGR) of 17.0%. The fund currently manages assets worth ₹3,062.06 crore.

The distribution of shares in the company is as follows: Home Financing holds 5.22%, Investment Banking & Brokerage has a 5.96% stake, Public Banks own 9.79%, Specialized Finance holds 22.25%, and the majority, 48.68%, is owned by Private Banks.

Banking Sector Mutual Funds India  – Exit Load

DSP Banking & Financial Services Fund

The DSP Banking & Financial Services Fund Direct – Growth is an equity mutual fund scheme offered by DSP Mutual Fund. The launch date of this scheme is not available, and it is currently managed by its fund manager, Dhaval Gada.

The investment scheme does not impose an exit load and maintains an expense ratio of 0.67%. Additionally, the fund manages a substantial amount of assets, with its Assets Under Management (AUM) totaling ₹ 516.0 crore. The shareholding pattern shows that 41.09% of the holdings are in cash and equivalents, while the remaining 58.91% are in equity.

Taurus Banking & Fin Serv Fund

The Taurus Banking & Financial Services Fund Direct-Growth is an equity mutual fund scheme offered by Taurus Mutual Fund. This scheme’s launch date is unavailable, and it is currently managed by its fund manager, Anuj Kapil.

The investment scheme imposes a 0.5% exit load and maintains an expense ratio of 1.76%. It’s important to note that this fund comes with a very high level of risk. However, over the past 3 years, the fund has shown strong performance, achieving a Compound Annual Growth Rate (CAGR) of 14.77%. Furthermore, the fund manages a substantial amount of assets, with its Assets Under Management (AUM) totaling ₹ 9.65 crore.

The shareholding pattern indicates that the allocation is composed of 3.55% in cash and equivalents, with the majority, 96.45%, in equity.

Mirae Asset Banking and Financial Services Fund

The Mirae Asset Banking and Financial Services Fund Direct-Growth is a mutual fund scheme in the Sectoral-Banking category offered by Mirae Asset Mutual Fund. This fund has been in operation for a duration of 3 years and 2 months.

The Mirae Asset Banking and Financial Services Fund has an exit load of 1.0% and an expense ratio of 0.6%. It’s important to note that this fund carries a high level of risk. However, it has demonstrated strong performance over the past 3 years, with a Compound Annual Growth Rate (CAGR) of 16.62%. Additionally, the fund manages a substantial amount of assets, with its Assets Under Management (AUM) totaling ₹ 1601.62 crore.

The shareholding pattern indicates that 0.45% of the holdings are in cash and equivalents, while the majority, 99.55%, is in equity.

Banking Sector Mutual Funds – Absolute 1 Year Return

HDFC Banking & Financial Services Fund

The HDFC Banking & Financial Services Fund Direct – Growth is a Sectoral-Banking mutual fund scheme offered by HDFC Mutual Fund. This fund has been operational for a duration of 2 years and 7 months. The HDFC Banking & Financial Services Fund has an exit load of 1.00%, an expense ratio of 0.60%, and manages assets totaling ₹ 3,156.81 crore.

The shareholding pattern indicates that 0.61% of the holdings are in cash and equivalents, while the majority, 99.39%, is in equity.

UTI Banking and Financial Services Fund

UTI Banking and Financial Services Fund Direct Plan-Growth is a Sectoral-Banking mutual fund scheme offered by UTI Mutual Fund, and it has a track record of 11 years.

The UTI Banking and Financial Services Fund comes with an exit load of 1.0% and an expense ratio of 1.16%. Over the past 3 years, it has achieved a Compound Annual Growth Rate (CAGR) of 16.0%, and it currently manages assets totaling ₹ 1002.3 crore.

The shareholding pattern includes Treasury Bills accounting for 0.11%, Cash & Equivalents making up 2.24%, and Equity representing the majority at 97.65%.

Baroda BNP Paribas Banking and Fin Serv Fund

Baroda BNP Paribas Banking and Financial Services Fund Direct-Growth is an Equity mutual fund scheme offered by Baroda BNP Paribas Mutual Fund. This fund was launched on an unspecified date and is currently overseen by its fund manager, Sandeep Jain.

The Baroda BNP Paribas Banking and Financial Services Fund has an exit load of 1.0% and an expense ratio of 1.26%. Over the past 3 years, it has shown a Compound Annual Growth Rate (CAGR) of 13.42%. Additionally, the fund manages assets amounting to ₹111.99 crore.

The shareholding pattern reveals that 0.44% of the holdings are in Treasury Bills, 2.22% are in Cash & Equivalents, and the majority, which is 97.33%, is invested in Equity.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change over time.

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