Best Financial Services Funds to Invest in November 2026
Foliyo’s research compared 18 financial services funds on returns, consistency, risk and cost. These 10 rank highest; 1 is a Leader.
- Financial Services funds reviewed
- 18
- Median 3-year return a year
- 11.2%
- Median expense ratio
- 0.98%
- Data as of
- 23 October 2026
Best 3 in November 2026
- 1
DSP Banking & Financial Services Fund Emerging— 3Y a year - 2
Invesco India Financial Services Fund Leader14.7% 3Y a year - 3
HSBC Financial Services Fund Emerging— 3Y a year
Category median 11.2% a year over 3 years
Invesco India Financial Services leads on a 3-year return of 14.7% against a peer median of 11.2%, with downside capture of 68. ICICI Pru and Aditya BSL trail on 3-year returns of 8.8% and 8.7% and charge 1.25% and 1.15% against a 0.98% median. Two of the top three spotlight funds (DSP and HSBC) are under 3 years old, so their top ranks rest on one-year data. The peer median 1-year return is -6.3%, so this is a single-sector category in a weak period.
Best financial services funds in November 2026: the ranking of 10
Ranked by Foliyo’s research among 18 financial services funds with at least ₹500 Cr. Returns are for the Direct Growth plan to 23 October 2026 (3 and 5-year returns a year; the bar shows the 3-year return); fund size as of 30 September 2026.
| # | Fund (Direct Growth) and Foliyo label | 1Y return | 3Y return | 5Y return | Expense ratio | Fund size |
|---|---|---|---|---|---|---|
| 1 | DSP Banking & Financial Services Fund Emerging | −1.7% | — | — | 0.81% | ₹2,034 Cr |
| 2 | Invesco India Financial Services Fund Leader | −3.9% | 14.7% | 11.5% | 0.96% | ₹1,789 Cr |
| 3 | HSBC Financial Services Fund Emerging | −3.5% | — | — | 0.96% | ₹903 Cr |
| 4 |  SBI Banking & Financial Services Fund Strong | −8.4% | 13.9% | 9.8% | 1.19% | ₹10,420 Cr |
| 5 | Quant BFSI Fund Strong | −0.6% | 18.1% | — | 1.95% | ₹894 Cr |
| 6 |  Mirae Asset Banking and Financial Services Fund Strong | −6.1% | 11.4% | 9.8% | 0.78% | ₹2,196 Cr |
| 7 |  Sundaram Financial Services Opportunities Fund Strong | −4.5% | 10.6% | 11.1% | 0.93% | ₹1,614 Cr |
| 8 |  Bandhan Financial Services Fund Steady | −8.2% | 12.6% | — | 1.00% | ₹1,046 Cr |
| 9 |  Baroda BNP Paribas Banking and Financial Services Fund Steady | −7.0% | 12.4% | 8.8% | 0.79% | ₹516 Cr |
| 11 |  Nippon India Banking & Financial Services Fund Steady | −8.4% | 10.0% | 10.3% | 1.07% | ₹7,367 Cr |
Category median: 11.2% a year over 3 years, −6.3% over 1 year, expense ratio 0.98%. # is the fund’s rank among all 18 in the review; funds too young or with too little data to rank are left out. A “—” means the fund is too young for that period.
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The 10 funds, one by one
DSP Banking & Financial Services Fund Direct Growth
Rank 1 of 18, managed by Preethi R S (lead since Oct 2025), Very High risk
Emerging Promising: ahead of peers in every rolling 1-year period, at lower cost, but under 3 years old with no 3-year record.
Pros
- Its 1-year return is -1.7% against a peer median of -6.3%, ahead by 4.6%.
- It was ahead of the peer median in 100.0% of rolling 1-year periods over the last 3 years.
- Its expense ratio is 0.81% against a peer median of 0.98%.
Cons
- Its 1-year volatility is 22.1% and its maximum drawdown is -12.9%, and it has not yet been through a full cycle.
- The lead manager has been in place only since Oct 2025, so part of the record predates her.
- 1-year return
- −1.7% +4.6 pts median −6.3%
- Expense ratio
- 0.81% −0.17 pts median 0.98%
- Cash
- 1.5% median 1.4%
- Fund size
- ₹2,034 Cr median ₹1,702 Cr
Invesco India Financial Services Fund Direct Growth
Rank 2 of 18, managed by Hiten Jain (lead since May 2020), Very High risk
Leader The one proven leader here: ahead of peers over 3 and 5 years, with downside capture of 68.
Pros
- 3-year return is 14.7% against a peer median of 11.2%, and 5-year is 11.5% against 9.4%.
- It was ahead of the peer median in 98.1% of rolling 3-year periods and 80.3% of rolling 1-year periods.
- Downside capture is 68 with upside capture of 106, a 3-year Sharpe of 0.62 and a maximum fall of -13.0%, so the lead did not come from extra downside.
Cons
- Top 10 holdings are 56.0% of the portfolio and tracking error is 7.64, so results can differ sharply from the benchmark in either direction.
- 1-year return is still negative at -3.9% and it was in the top half of its category in only 3 of 5 calendar years.
- 1-year return
- −3.9% +2.3 pts median −6.3%
- 3-year return (a year)
- 14.7% +3.5 pts median 11.2%
- 5-year return (a year)
- 11.5% +2.1 pts median 9.4%
- Sharpe ratio (3Y)
- 0.62 +0.26 median 0.36
- Volatility (3Y)
- 16.0% −0.4 pts median 16.5%
- Worst fall (3Y)
- −13.0% +2.0 pts median −15.0%
- Downside capture (3Y)
- 68 −19 median 87
- Expense ratio
- 0.96% −0.02 pts median 0.98%
- Cash
- 4.3% median 1.4%
- Fund size
- ₹1,789 Cr median ₹1,702 Cr
HSBC Financial Services Fund Direct Growth
Rank 3 of 18, managed by Gautam Bhupal (lead since Feb 2025), Very High risk
Emerging Promising young fund that has beaten peers in most rolling 1-year periods; too early to call it proven.
Pros
- Its 1-year return is -3.5% against a peer median of -6.3%, ahead by 2.8%.
- It was ahead of the peer median in 94.3% of rolling 1-year periods over the last 3 years.
- Its expense ratio is 0.96% against a peer median of 0.98%, so cost is neither a help nor a handicap.
Cons
- It is 1.7 years old and has no 3-year record.
- Its 1-year volatility is 22.8% and its maximum drawdown is -13.0%, and its 3-month return is -7.8%.
- 1-year return
- −3.5% +2.8 pts median −6.3%
- Expense ratio
- 0.96% −0.02 pts median 0.98%
- Cash
- 4.3% median 1.4%
- Fund size
- ₹903 Cr median ₹1,702 Cr
SBI Banking & Financial Services Fund Direct Growth
Rank 4 of 18, managed by Milind Agrawal (lead since Aug 2019), Very High risk
Strong A strong fund: ranks 4 of 18 in Sector - Financial Services.
Pros
- 3-year return (a year) 13.9% vs peer median 11.2%
- Ahead of the peer median in 80.6% of rolling 1-year periods (weekly, last 3 years)
- Sharpe ratio (3Y) 0.57 vs peer median 0.36
Cons
- Expense ratio 1.19% vs peer median 0.98%
- 1-year return -8.4% vs peer median -6.3%
- 1-year return
- −8.4% −2.2 pts median −6.3%
- 3-year return (a year)
- 13.9% +2.7 pts median 11.2%
- 5-year return (a year)
- 9.8% +0.4 pts median 9.4%
- Sharpe ratio (3Y)
- 0.56 +0.20 median 0.36
- Volatility (3Y)
- 14.8% −1.6 pts median 16.5%
- Worst fall (3Y)
- −14.4% +0.6 pts median −15.0%
- Downside capture (3Y)
- 73 −15 median 87
- Expense ratio
- 1.19% +0.21 pts median 0.98%
- Cash
- 3.7% median 1.4%
- Fund size
- ₹10,420 Cr median ₹1,702 Cr
Quant BFSI Fund Direct Growth
Rank 5 of 18, managed by Sandeep Tandon (lead since Jun 2023), Very High risk
Strong A strong fund: ranks 5 of 18 in Sector - Financial Services.
Pros
- 3-year return (a year) 18.1% vs peer median 11.2%
- Sharpe ratio (3Y) 0.77 vs peer median 0.36
- Downside capture (3Y) 50 vs peer median 87
Cons
- Expense ratio 1.95% vs peer median 0.98%
- Worst fall (3Y) -20.7% vs peer median -15.0%
- Expense ratio 1.95% against a peer median of 0.98%
- 1-year return
- −0.6% +5.6 pts median −6.3%
- 3-year return (a year)
- 18.1% +6.9 pts median 11.2%
- Sharpe ratio (3Y)
- 0.77 +0.41 median 0.36
- Volatility (3Y)
- 18.8% +2.3 pts median 16.5%
- Worst fall (3Y)
- −20.7% −5.7 pts median −15.0%
- Downside capture (3Y)
- 50 −37 median 87
- Expense ratio
- 1.95% +0.97 pts median 0.98%
- Cash
- 7.5% median 1.4%
- Fund size
- ₹894 Cr median ₹1,702 Cr
Mirae Asset Banking and Financial Services Fund Direct Growth
Rank 6 of 18, managed by Abhijith Vara (lead since Sep 2025), Very High risk
Strong A strong fund: ranks 6 of 18 in Sector - Financial Services.
Pros
- Expense ratio 0.78% vs peer median 0.98%
Cons
- Lead manager has run it for 1.1 years
- 1-year return
- −6.1% +0.2 pts median −6.3%
- 3-year return (a year)
- 11.4% +0.2 pts median 11.2%
- 5-year return (a year)
- 9.8% +0.3 pts median 9.4%
- Sharpe ratio (3Y)
- 0.36 +0.01 median 0.36
- Volatility (3Y)
- 16.3% −0.1 pts median 16.5%
- Worst fall (3Y)
- −14.0% +1.0 pts median −15.0%
- Downside capture (3Y)
- 87 level median 87
- Expense ratio
- 0.78% −0.20 pts median 0.98%
- Cash
- 2.1% median 1.4%
- Fund size
- ₹2,196 Cr median ₹1,702 Cr
Sundaram Financial Services Opportunities Fund Direct Growth
Rank 7 of 18, managed by Rohit Seksaria (lead since Dec 2017), Very High risk
Strong A strong fund: ranks 7 of 18 in Sector - Financial Services.
Pros
- Ahead of the peer median in 96.8% of rolling 3-year periods (weekly, last 3 years)
- 5-year return (a year) 11.1% vs peer median 9.4%
- 1-year return -4.5% vs peer median -6.3%
Cons
- Worst fall (3Y) -15.5% vs peer median -15.0%
- Volatility (3Y) 17.1% vs peer median 16.5%
- 1-year return
- −4.5% +1.7 pts median −6.3%
- 3-year return (a year)
- 10.6% −0.6 pts median 11.2%
- 5-year return (a year)
- 11.1% +1.6 pts median 9.4%
- Sharpe ratio (3Y)
- 0.35 −0.01 median 0.36
- Volatility (3Y)
- 17.1% +0.6 pts median 16.5%
- Worst fall (3Y)
- −15.5% −0.4 pts median −15.0%
- Downside capture (3Y)
- 90 +3 median 87
- Expense ratio
- 0.93% −0.05 pts median 0.98%
- Cash
- 1.3% median 1.4%
- Fund size
- ₹1,614 Cr median ₹1,702 Cr
Bandhan Financial Services Fund Direct Growth
Rank 8 of 18, managed by Gaurav Satra (lead since Jun 2024), Very High risk
Steady Middle of the pack: ranks 8 of 18 in Sector - Financial Services.
Pros
- 3-year return (a year) 12.6% vs peer median 11.2%
- Downside capture (3Y) 80 vs peer median 87
Cons
- 1-year return -8.2% vs peer median -6.3%
- Lead manager has run it for 2.4 years
- 1-year return
- −8.2% −2.0 pts median −6.3%
- 3-year return (a year)
- 12.6% +1.4 pts median 11.2%
- Sharpe ratio (3Y)
- 0.49 +0.13 median 0.36
- Volatility (3Y)
- 16.7% +0.2 pts median 16.5%
- Worst fall (3Y)
- −16.8% −1.8 pts median −15.0%
- Downside capture (3Y)
- 80 −7 median 87
- Expense ratio
- 1.00% +0.02 pts median 0.98%
- Cash
- 1.4% median 1.4%
- Fund size
- ₹1,046 Cr median ₹1,702 Cr
Baroda BNP Paribas Banking and Financial Services Fund Direct Growth
Rank 9 of 18, managed by Silky Jain (lead since Jul 2026), Very High risk
Steady Middle of the pack: low cost and decent 3-year return, but rolling consistency is weak and the manager is new.
Pros
- Its 3-year return is 12.4% against a peer median of 11.2%, with downside capture of 87 and alpha of 4.3.
- Its expense ratio is 0.79% against a peer median of 0.98%.
Cons
- The lead manager (Silky Jain) has run it only since Jul 2026, so the record was built under someone else.
- Its 5-year return is 8.8% against a peer median of 9.4%, and it was in the top half in only 2 of the last 5 calendar years.
- 1-year return
- −7.0% −0.8 pts median −6.3%
- 3-year return (a year)
- 12.4% +1.2 pts median 11.2%
- 5-year return (a year)
- 8.8% −0.6 pts median 9.4%
- Sharpe ratio (3Y)
- 0.47 +0.11 median 0.36
- Volatility (3Y)
- 16.4% −0.1 pts median 16.5%
- Worst fall (3Y)
- −14.9% +0.2 pts median −15.0%
- Downside capture (3Y)
- 87 level median 87
- Expense ratio
- 0.79% −0.19 pts median 0.98%
- Cash
- 2.3% median 1.4%
- Fund size
- ₹516 Cr median ₹1,702 Cr
Nippon India Banking & Financial Services Fund Direct Growth
Rank 11 of 18, managed by Vinay Sharma (lead since Apr 2018), Very High risk
Steady Middle of the pack: ranks 11 of 18 in Sector - Financial Services.
Pros
- Ahead of the peer median in 84.1% of rolling 3-year periods (weekly, last 3 years)
- 5-year return (a year) 10.3% vs peer median 9.4%
Cons
- 3-year return (a year) 10.0% vs peer median 11.2%
- Sharpe ratio (3Y) 0.31 vs peer median 0.36
- 1-year return
- −8.4% −2.2 pts median −6.3%
- 3-year return (a year)
- 10.0% −1.2 pts median 11.2%
- 5-year return (a year)
- 10.3% +0.9 pts median 9.4%
- Sharpe ratio (3Y)
- 0.31 −0.05 median 0.36
- Volatility (3Y)
- 15.9% −0.6 pts median 16.5%
- Worst fall (3Y)
- −14.9% +0.1 pts median −15.0%
- Downside capture (3Y)
- 89 +1 median 87
- Expense ratio
- 1.07% +0.09 pts median 0.98%
- Cash
- 0.8% median 1.4%
- Fund size
- ₹7,367 Cr median ₹1,702 Cr
What is a financial services fund?
A financial services fund keeps at least 80% of its money in banks, lenders, insurers, brokers and other financial companies (a banking fund is a narrower version). Financials are already the largest sector in most diversified funds, so check the overlap before adding one.
Read more: Sector and thematic funds: when to use them.
How Foliyo’s research ranks funds
Every month Foliyo’s Research Desk reviews each Indian mutual fund with at least ₹500 Cr under management (1,035 funds in the review of 23 October 2026), through its Direct Growth plan, and ranks it against the other funds in its category. No fund house pays us, and we earn no commission, so the ranking has no reason to favour anyone. For equity funds the ranking weighs:
- Performance (35%): 3, 5 and 1-year returns, and where the fund stands among all funds in its category over 3 and 5 years.
- Consistency (25%): how often the fund was ahead of its peers over rolling 1 and 3-year periods, and in how many calendar years it finished in the top half.
- Risk (25%): return per unit of risk (Sharpe and Sortino ratios), how much of the market’s falls it took (downside capture), its worst fall and its volatility.
- Cost (10%) and stability (5%): the expense ratio, and how long the lead manager has run the fund.
Where a fund stands sets its label: Leader (the strongest in the category), Strong, Steady and Laggard (behind most of its peers). A fund under 3 years old is never judged on a full record: its first year is compared with every peer’s last year (1-year return 25%, steadiness against peers 15%, Sharpe ratio 15%, worst fall 10%, downside capture 10%, cost 15%), and it is labelled Emerging when that start is among the strongest, or Too early otherwise. Red flags are set by rule, never by opinion: a new lead manager, a portfolio that strays from the category’s mandate, high cash, high cost or a concentrated portfolio.
Frequently asked questions
Which are the best financial services funds to invest in November 2026?
On Foliyo’s research (data to 23 October 2026), the five highest-ranked financial services funds are DSP Banking & Financial Services Fund (Emerging), Invesco India Financial Services Fund (Leader), HSBC Financial Services Fund (Emerging), SBI Banking & Financial Services Fund (Strong), Quant BFSI Fund (Strong). The full list of 10, with each fund’s pros and cons, is on this page. Which one suits you depends on your goals and the funds you already own.
What is a financial services fund?
A financial services fund keeps at least 80% of its money in banks, lenders, insurers, brokers and other financial companies (a banking fund is a narrower version). Financials are already the largest sector in most diversified funds, so check the overlap before adding one.
How does Foliyo rank financial services funds?
Each financial services fund with at least ₹500 Cr is compared with the others on performance (3, 5 and 1-year returns), consistency (rolling returns and calendar years), risk (Sharpe and Sortino ratios, downside capture, worst fall, volatility), cost (expense ratio) and the lead manager’s tenure. The strongest are Leaders, then Strong, Steady and Laggard; funds under 3 years old are Emerging (a strong first year) or Too early.
What return have financial services funds given?
The median financial services fund in our review returned 11.2% a year over 3 years and 9.4% a year over 5 years, and −6.3% over the last year, to 23 October 2026 (Direct plans). The top-ranked fund, DSP Banking & Financial Services Fund, returned — a year over 3 years.
What is the expense ratio of financial services funds?
The median Direct plan in the category charges 0.98% a year. Regular plans cost more, often 0.6 to 1.2 points a year more, because the fee includes the distributor’s commission. See what that gap costs over time.
Is the top-ranked financial services fund the best one for me?
Not necessarily. The ranking says how funds have done against each other, not how they will do, and the right fund depends on your goals, horizon and the funds you already hold. A fee-only adviser can check your whole portfolio: talk to a Foliyo adviser.
Why hire a Foliyo Advisor?
- Unbiased
- No commissions, ever
- SEBI-registered RIA
- Best-in-class research