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List of the Top Sectoral Mutual Funds in India 2026

Sectoral mutual funds invest primarily in companies linked to a single sector of the economy, such as technology, banking, or energy. Unlike diversified funds, their performance is driven by sector-specific factors like earnings cycles, policy changes, demand trends, and economic conditions. Because different sectors perform well at different points in time, sectoral funds can show sharp variations in returns across market cycles. Here is a list of the best sectoral mutual funds in India along with their AUM, expense ratio and more.

Top Sectoral Mutual Funds in 2026

Top Sectoral Funds in India 2026

A list of the top sectoral mutual funds in India, ranked by 5‑year CAGR. Get detailed performance data for funds invested in specific market sectors.

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Showing 1 - 20 of 65 results

last updated at 8:00 AM IST 
NameMFs (65)↓↓Sub CategorySub Category↓↓PlanPlan↓↓AUMAUM↓↓CAGR 5YCAGR 5Y↓↓CAGR 3YCAGR 3Y↓↓Expense RatioExpense Ratio↓↓Absolute Returns - 1YAbsolute Ret. - 1Y↓
1.ICICI Pru Infrastructure Fund
ICICI Pru Infrastructure Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
8,097.89
8,097.89
25.08
25.08
22.32
22.32
1.15
1.15
10.04
10.04
2.Canara Rob Infrastructure Fund
Canara Rob Infrastructure Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
933.71
933.71
23.80
23.80
24.93
24.93
1.03
1.03
17.51
17.51
3.LIC MF Infra Fund
LIC MF Infra Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
904.53
904.53
23.77
23.77
27.49
27.49
0.98
0.98
19.33
19.33
4.DSP India T.I.G.E.R Fund
DSP India T.I.G.E.R Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
5,459.77
5,459.77
23.68
23.68
24.89
24.89
0.74
0.74
15.30
15.30
5.Franklin Build India Fund
Franklin Build India Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
3,173.61
3,173.61
23.64
23.64
25.73
25.73
0.95
0.95
13.84
13.84
6.HDFC Infrastructure Fund
HDFC Infrastructure Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
2,417.41
2,417.41
23.38
23.38
23.88
23.88
1.15
1.15
6.18
6.18
7.Nippon India Power & Infra Fund
Nippon India Power & Infra Fund
Sectoral Fund - Energy & Power
Sectoral Fund - Energy & Power
Growth
Growth
7,127.91
7,127.91
23.01
23.01
24.49
24.49
0.95
0.95
12.89
12.89
8.Bank of India Mfg & Infra Fund
Bank of India Mfg & Infra Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
689.06
689.06
22.43
22.43
24.82
24.82
0.62
0.62
24.07
24.07
9.Kotak Infra & Eco Reform Fund
Kotak Infra & Eco Reform Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
2,054.92
2,054.92
21.10
21.10
18.07
18.07
0.69
0.69
13.97
13.97
10.Invesco India Infrastructure Fund
Invesco India Infrastructure Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
1,369.78
1,369.78
20.88
20.88
21.69
21.69
0.92
0.92
7.66
7.66
11.Quant Infrastructure Fund
Quant Infrastructure Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
2,869.01
2,869.01
20.51
20.51
16.56
16.56
0.91
0.91
4.63
4.63
12.HSBC Infrastructure Fund
HSBC Infrastructure Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
2,057.60
2,057.60
20.50
20.50
19.81
19.81
0.99
0.99
10.42
10.42
13.DSP Natural Res & New Energy Fund
DSP Natural Res & New Energy Fund
Sectoral Fund - Energy & Power
Sectoral Fund - Energy & Power
Growth
Growth
1,989.64
1,989.64
20.21
20.21
24.68
24.68
0.84
0.84
39.34
39.34
14.Bandhan Infrastructure Fund
Bandhan Infrastructure Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
1,468.88
1,468.88
19.66
19.66
21.05
21.05
0.93
0.93
1.53
1.53
15.SBI Infrastructure Fund
SBI Infrastructure Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
4,645.50
4,645.50
19.16
19.16
18.19
18.19
1.04
1.04
3.35
3.35
16.Sundaram Infra Advantage Fund
Sundaram Infra Advantage Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
963.88
963.88
18.83
18.83
21.04
21.04
1.59
1.59
15.67
15.67
17.Aditya Birla SL Infrastructure Fund
Aditya Birla SL Infrastructure Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
1,119.54
1,119.54
18.76
18.76
20.06
20.06
1.42
1.42
13.05
13.05
18.Tata Infrastructure Fund
Tata Infrastructure Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
2,014.32
2,014.32
17.86
17.86
16.52
16.52
1.17
1.17
6.69
6.69
19.SBI Healthcare Opp Fund
SBI Healthcare Opp Fund
Sectoral Fund - Pharma & Health Care
Sectoral Fund - Pharma & Health Care
Growth
Growth
4,076.67
4,076.67
16.76
16.76
24.99
24.99
0.91
0.91
7.16
7.16
20.ICICI Pru Exports & Services Fund
ICICI Pru Exports & Services Fund
Sectoral Fund - Service Industry
Sectoral Fund - Service Industry
Growth
Growth
1,377.89
1,377.89
16.58
16.58
17.56
17.56
1.65
1.65
6.53
6.53
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Analyse Sectoral Mutual Funds Further

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Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.

Selection criteria: 5Y CAGR, Plan: Growth, Category: Equity, Sub-Category: Sectoral Funds

What are the Sectoral Mutual Funds?

Sectoral Mutual Funds are equity mutual funds that invest mainly in companies from one specific sector of the economy, such as banking, IT, healthcare, energy, or infrastructure. Sectoral mutual funds usually invest at least 80% of their assets in one sector, as required by SEBI.

Instead of spreading money across many industries, these funds focus on a single sector. This means their returns move in line with how that sector performs. If the sector does well, the fund can deliver strong returns. If the sector slows down, the fund may underperform for long periods.

Overview of the Sectoral Mutual Funds

ICICI Pru Infrastructure Fund

This fund primarily invests in companies related to infrastructure development, focusing on sectors like construction, power, and transport. It aims to provide long-term capital appreciation by investing in high-growth infrastructure stocks.

Canara Rob Infrastructure Fund

This fund seeks to invest in the infrastructure sector, focusing on companies in industries like energy, transportation, and real estate. It aims to capitalise on the growth of the Indian infrastructure space and provide capital gains over time.

DSP India T.I.G.E.R Fund

This fund focuses on investing in sectors such as infrastructure, energy, and utilities, which are expected to benefit from India's economic growth. It looks to offer long-term growth by targeting high-potential companies in these industries.

LIC MF Infra Fund

This fund invests in infrastructure-related stocks, including those in sectors like power, energy, and transportation. It aims to offer long-term capital appreciation by focusing on the growing infrastructure needs in India.

Nippon India Power & Infra Fund

This fund focuses on investing in companies from the power and infrastructure sectors. It seeks to provide investors with capital growth by capitalising on the expansion of India’s infrastructure and power generation industries.

How to Invest in Sectoral Mutual Funds?

Here's how you can identify and invest in the best sectoral mutual funds with Tickertape Mutual Fund Screener -

  1. Create an account on the Tickertape or log in if you already have one.
  2. Open Sectoral Mutual Funds Screener
  3. Filter out the best sectoral mutual funds based on over 50 fundamental and technical filters.
  4. After identifying the sectoral mutual fund that aligns with your investment thesis, click on "Place Order" to invest in the mutual fund.

With Tickertape Mutual Fund Screener, you can invest via 'lumpsum' or start a 'SIP' in sectoral mutual funds. Moreover, by connecting your portfolio, you can do a deep analysis of your portfolio and assess its performance.

Taxation on Sectoral Mutual Funds

Sectoral mutual funds can be equity-oriented or debt-oriented. The taxation of gains depends on the type of fund and the holding period, not on the sector itself.

Sectoral Fund Type Type of Capital Gain Holding Period Tax Rate
Equity Sectoral Mutual Fund Short-Term Capital Gains (STCG) Less than 12 months 20%
Equity Sectoral Mutual Fund Long-Term Capital Gains (LTCG) More than 12 months 12.5% (gains above ₹1.25 lakh)
Debt Sectoral Mutual Fund Short-Term Capital Gains (STCG) Up to 36 months As per income tax slab
Debt Sectoral Mutual Fund Long-Term Capital Gains (LTCG) More than 36 months 12.5%

Benefits of Sectoral Mutual Funds

Targeted Sector Exposure

Sectoral mutual funds invest largely in one industry, such as banking, IT, or energy. This creates direct exposure to sector-specific earnings, demand trends, and business cycles rather than broad market movements.

Clear Performance Drivers

Returns are influenced by a defined set of factors like interest rates for banking funds, global tech spending for IT funds, or commodity prices for energy funds. This makes it easier to link fund performance to real-world economic and policy developments.

Participation in Structural Themes

Some sectors benefit from long-term structural changes such as digital adoption, infrastructure spending, or energy transition. Sectoral funds in India capture companies operating across different parts of the same value chain within these themes.

Potential for Sharper Upside

During periods when a sector enters a strong earnings or expansion phase, concentrated exposure can lead to stronger returns compared to diversified equity funds that spread exposure across sectors.

Active Stock Selection Within a Sector

Fund managers select companies within the same sector based on balance sheets, earnings visibility, and competitive position. This allows exposure to stronger businesses while staying within a defined industry.

Risks of Sectoral Mutual Funds

High Concentration Risk

Sectoral mutual funds invest most of their money in one industry. When that sector faces problems such as lower demand, rising costs, or business disruption, many companies in the portfolio can be affected at the same time. This increases the impact of negative events on the fund’s overall performance.

Long Sector Downcycles

Sectors go through long phases of growth and slowdown. During weak phases, earnings can remain under pressure for years due to factors like excess supply, lower spending, or delayed projects. In such periods, sectoral funds in India may underperform even if the broader market continues to move up.

Policy and Regulatory Exposure

Many sectors depend heavily on government policies and regulations. Changes in interest rates, environmental rules, pricing restrictions, or operating licences can affect multiple companies across the sector at once, influencing profits and stock prices.

Limited Risk Absorption

Although sectoral funds invest in several companies, these businesses often face similar risks. Factors like higher raw material costs or slowing demand tend to impact the entire sector together, limiting the protection that diversification usually provides.

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Factors to Consider Before Investing in Sectoral Mutual Funds

Where the Sector Stands in Its Cycle

Every sector goes through phases of growth, slowdown, and recovery. Some sectors perform well only during specific economic conditions. Understanding whether the sector is expanding or facing pressure helps explain why returns may rise or remain weak for long periods.

Stability of Sector Earnings

Sectoral funds depend on how consistently companies in that sector generate profits. Sectors with predictable demand and steady margins behave differently from sectors where earnings fluctuate sharply due to pricing, costs, or global conditions.

Policy and Regulatory Impact

Government policies can influence entire sectors at once. Changes in interest rates, taxes, subsidies, environmental rules, or pricing controls can affect business operations, profitability, and stock valuations across all companies in the fund.

Dependence on Economic Conditions

Some sectors are closely tied to economic growth, interest rates, or global demand. For example, financial services depend on credit growth, technology depends on overseas spending, and energy depends on fuel demand and prices.

Overlap With Existing Holdings

Many diversified equity funds already hold large positions in certain sectors. Adding a sectoral fund to a portfolio on top of this can increase overall exposure to the same risks without realising it. That’s why investors need to review their current portfolio to ensure their overall exposure to that sector remains balanced.

Conclusion

Sectoral mutual funds offer focused exposure to specific sectors, making it easier to track how industry trends, earnings cycles, and policy changes influence returns. This concentration can be useful during strong sector phases but also increases the risk of sharper volatility and longer periods of underperformance when the sector faces headwinds.

Given this balance of opportunity and risk, reviewing existing portfolio exposure and risk comfort becomes important. Investors can use the Tickertape Mutual Fund Screener to find mutual funds that align with their risk profile and investment thesis. The screener offers 50+ pre-built filters to create lists of mutual funds based on factors such as fund type, sector exposure, returns, risk metrics, and more.

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Frequently Asked Questions About Sectoral Mutual Funds

  1. What are sectoral mutual funds?

    Sectoral mutual funds invest mainly in companies from a single sector, such as banking, IT, healthcare, or energy. Their performance depends largely on how that sector performs.

  2. Are sectoral mutual funds high risk?

    Sectoral mutual funds carry higher risk than diversified equity funds because they are concentrated in one sector. Any slowdown, policy change, or disruption in that sector can affect most holdings at the same time.

  3. Which is better, a sectoral or a thematic fund?

    Sectoral and thematic funds both focus on specific segments, but they differ in approach. Sectoral funds concentrate on a defined industry (e.g., banking, technology), while thematic funds follow a broader trend or theme that may span multiple industries. Which one aligns with an investor’s needs depends

  4. Which sectoral fund is best?

    As of 24th March 2026, some of the largest sectoral mutual funds in India based on Assets Under Management (AUM) include:
    1. ICICI Pru Technology Fund
    2. Tata Digital India Fund
    3. ICICI Pru Banking & Fin Serv Fund
    4. SBI Banking & Financial Services Fund
    5. ICICI Pru Energy Opportunities Fund

    Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory.

  5. Which sector fund is the best?

    Sectoral mutual funds span multiple sectors, but returns vary widely across time. Performance depends on sector-specific conditions. For example, IT sector mutual funds often perform better during periods of strong global technology spending and favourable currency movement.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.