Compare the best banking and financial services funds in India - ICICI Prudential, SBI, Nippon India, Aditya Birla and Tata. Pure play on India's banking and financial sector. Live NAV, returns and analysis from RightAdvise.
Sorted by 5-year CAGR. Click any fund for full analysis - rolling returns, drawdown chart, NAV history and risk ratios.
If you had invested ₹1 lakh 5 years ago in each fund, here is how much it would be worth today. Calculated from 5 years of daily NAV in the RightAdvise database.
💡 What is AAUM? AAUM stands for Average Assets Under Management - the average value of all investor money a fund managed during a specific quarter. Reported to SEBI every quarter via AMFI. More reliable than a single-day AUM snapshot.
| Fund | NAV | AAUM | 1Y Return | 3Y CAGR | 5Y CAGR | 10Y CAGR | Max Drawdown | Sharpe (3Y) |
|---|---|---|---|---|---|---|---|---|
| Nippon India Banking & Financial Services Fund | ₹670.50 2026-06-04 | ₹7.4K Cr Jan–Mar 2026 | -1.9% | +13.5 % p.a. | +14.0 % p.a. | +14.3 % p.a. | -50.6% | 0.62 |
| SBI Banking & Financial Services Fund | ₹47.05 2026-06-04 | ₹10.2K Cr Jan–Mar 2026 | +1.8% | +16.6 % p.a. | +13.0 % p.a. | +16.2 % p.a. | -43.8% | 0.71 |
| Tata Banking and Financial Services Fund | ₹48.64 2026-06-04 | ₹3.1K Cr Jan–Mar 2026 | -1.5% | +13.2 % p.a. | +12.5 % p.a. | +15.7 % p.a. | -41.6% | 0.58 |
| Aditya Birla Sun Life Banking & Financial Services Fund | ₹66.74 2026-06-04 | ₹3.5K Cr Jan–Mar 2026 | -1.2% | +12.1 % p.a. | +11.4 % p.a. | +13.5 % p.a. | -47.5% | 0.48 |
| ICICI Prudential Banking and Financial Services Fund | ₹141.42 2026-06-04 | ₹10.6K Cr Jan–Mar 2026 | -5.8% | +10.5 % p.a. | +10.1 % p.a. | +13.8 % p.a. | -47.8% | 0.43 |
Banking and Financial Services Funds are sectoral funds that must invest at least 80% of their assets in equity and equity-related instruments of companies in the banking and financial services sector. This includes banks, NBFCs, insurance companies, broking firms, AMCs and other financial intermediaries. These are high-concentration, high-risk sector funds - not suitable for conservative investors.
Banking and Financial Services Funds offer a concentrated bet on India's financial sector - the backbone of the economy. The sector includes public sector banks, private banks, NBFCs (non-banking financial companies), insurance companies, housing finance companies, stock brokers, asset management companies and payment companies. India's financial sector is one of the largest weightages in the Nifty 50 index (25-35%) - investing in a banking sector fund amplifies this exposure significantly.
The bull case for Indian banking and financial services funds is compelling: India's credit penetration is still low compared to developed markets, the banking sector NPL cycle has largely cleaned up post-2018, digital financial services are growing rapidly, and insurance and AMC penetration have significant runway. The bear case is equally real: banking stocks are highly sensitive to interest rate cycles, credit quality events and regulatory changes. These funds can deliver exceptional returns in banking sector bull cycles but can also fall sharply when the sector faces stress.
Banking and financial services sector funds are not diversified equity funds. They concentrate 80%+ of the portfolio in a single sector. When banking stocks boom, these funds can deliver 40-50% returns in a year. When banking stocks crash (as in 2018 IL&FS crisis or 2020 COVID period), they can fall 40-50%. Never use a sector fund as your primary or only equity investment. Use it as a satellite allocation - 10-15% of your equity portfolio - only if you have a specific view on the banking sector and can monitor it actively.
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