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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.
Min SIP
₹ 5,000
5 Yrs Return
+ 24.34 % p.a. + 19.77 % p.a. + 39.1 % + 23.0 % p.a. + 30.86 % p.a. + 36.95 % + 38.41 % p.a. + 4.03 %
Fund Size
₹1,258 Crs
Return (p.a)
+ 15.67%+ 1.16% + 19.76%+ 2.98% + 14.44%+ 3.98% + 25.64%+ 13.31% + 23.8%+ 41.23% + 22.79%+ 75.87%
ETM Rank
#1 of 11Fund Size
₹2,094 Crs
Return (p.a)
+ 11.77%+ 0.89% + 18.35%+ 2.78% + 7.26%+ 2.04% + 14.16%+ 7.46% + 17.47%+ 29.34% + 17.95%+ 56.4%
ETM Rank
#2 of 11Fund Size
₹812 Crs
Return (p.a)
+ 27.61%+ 1.96% + 28.26%+ 4.14% + 22.1%+ 5.95% + 31.6%+ 16.28% + 22.71%+ 39.13% + 21.11%+ 68.91%
ETM Rank
#3 of 11Fund Size
₹7,424 Crs
Return (p.a)
+ 2.42%+ 0.19% + 15.05%+ 2.31% + 11.23%+ 3.12% + 14.19%+ 7.48% + 14.31%+ 23.66% + 16.52%+ 51.05%
ETM Rank
#4 of 11Fund Size
₹5,542 Crs
Return (p.a)
+ 6.64%+ 0.51% + 14.27%+ 2.2% + 11.32%+ 3.15% + 19.12%+ 10.01% + 19.94%+ 33.89% + 21.5%+ 70.51%
ETM Rank
#5 of 11Fund Size
₹5,327 Crs
Return (p.a)
+ 21.69%+ 1.57% + 23.98%+ 3.57% + 23.72%+ 6.36% + 27.42%+ 14.2% + 18.88%+ 31.93% + 18.71%+ 59.32%
ETM Rank
#6 of 11Fund Size
₹3,178 Crs
Return (p.a)
+ 6.65%+ 0.51% + 14.91%+ 2.29% + 8.68%+ 2.43% + 14.94%+ 7.87% + 16.52%+ 27.6% + 18.13%+ 57.1%
ETM Rank
#9 of 11Fund Size
₹1,080 Crs
Return (p.a)
+ 4.04%+ 0.31% + 12.56%+ 1.94% + 11.48%+ 3.19% + 17.75%+ 9.31% + 16.43%+ 27.45% + 17.0%+ 52.83%
ETM Rank
#11 of 11Unranked
Fund Size
₹802 Crs
Return (p.a)
+ 9.93%+ 0.75% + 13.25%+ 2.05% + 16.85%+ 4.61% N.A.N.A. N.A.N.A. N.A.N.A.
ETM Rank
UnrankedFund Size
₹609 Crs
Return (p.a)
+ 22.56%+ 1.63% + 21.67%+ 3.25% N.A.N.A. N.A.N.A. N.A.N.A. N.A.N.A.
ETM Rank
UnrankedFund Size
₹3,370 Crs
Return (p.a)
+ 14.7%+ 1.1% + 20.44%+ 3.08% + 12.07%+ 3.35% + 17.85%+ 9.36% N.A.N.A. N.A.N.A.
ETM Rank
UnrankedFund Size
₹851 Crs
Return (p.a)
+ 15.33%+ 1.14% + 16.93%+ 2.58% + 12.7%+ 3.51% + 16.77%+ 8.8% N.A.N.A. N.A.N.A.
ETM Rank
UnrankedFund Size
₹1,703 Crs
Return (p.a)
+ 21.04%+ 1.53% + 19.96%+ 3.01% + 13.31%+ 3.68% + 17.8%+ 9.33% + 17.89%+ 30.1% N.A.N.A.
ETM Rank
UnrankedUnranked
Fund Size
₹514 Crs
Return (p.a)
+ 32.81%+ 2.28% + 21.71%+ 3.25% + 45.12%+ 11.46% N.A.N.A. N.A.N.A. N.A.N.A.
ETM Rank
UnrankedSee what your investment would have yielded in
It is quite easy to invest in Sectoral-Banking mutual funds on ET Money. Here are the steps that you have to follow.
Which are the best Sectoral-Banking Mutual Funds to invest in 2024?
These are top 5 Sectoral-Banking funds you can invest in 2024
Fund Name | Fund Category | ETM Rank | Consistency | 5 Year Return (Annualized) |
---|---|---|---|---|
Kotak Banking & Financial Services Fund | Equity | Unranked | NA | |
Bandhan Financial Services Fund | Equity | Unranked | NA | |
Invesco India Financial Services Fund | Equity | # 3 of 11 | 17.05 % p.a. | |
HDFC Banking & Financial Services Fund | Equity | Unranked | NA | |
Aditya Birla Sun Life Banking & Financial Services Fund | Equity | # 9 of 11 | 14.21 % 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 15.02% p.a. returns in the last 5 years. Their 3 and 10 year annualized returns are 17.03% and 15.73% 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.