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Banking and PSU Mutual Funds

Banking and PSU Funds are investment vehicles that are safer than other types of mutual funds. These are open-ended debt mutual fund investment schemes that stand out from others owing to their investment pattern. These funds invest a minimum of 80 percent of assets in public financial institutions, banks, and PSUs (public sector undertaking) debt securities. View More

These mutual fund schemes generally invest a large part in debentures, bonds, and certificates of deposits issued by public sector banks working under the government. The focus is to invest in debt instruments with a low maturity period and high liquidity. These funds are ultra-short or short to medium-term investments with a lower risk than traditional debt funds.

While these schemes are much safer than private sector undertaking, it should be noted that they are not entirely free of risk. The funds also have the potential to offer high returns, but it depends on the market conditions. This means they are suitable for investors with a low-risk appetite, but it is essential to keep in mind the market volatility and your financial goals before investing in them.

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List of Banking and PSU Mutual Funds

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Who Should Invest in Banking & PSU Mutual Funds?

Banking and PSU funds are short-term investments considered to be on the safer side as compared to regular debt schemes. These funds are suitable for these types of investors: View More

  • Conservative or risk-averse investors looking for a comparatively safer mutual fund option in their portfolio can benefit from Banking & PSU funds. As they are not so market-volatile, they are perfect for investors who want ultra-short or short-term investments with minimal risk.
  • Experienced investors well-versed with the stock market function can allocate a portion of their portfolio to the best Banking & PSU funds. If the investor pools money in risky assets, these investments can balance the risk factor to a great extent. In any unforeseen situation like a downtrend in the stock market, such an investment can deliver returns compensating for the losses or low returns associated with risky assets.
  • These debt mutual funds are an ideal investment alternative for investors looking to put their surplus funds into a secure scheme to protect their portfolio while realizing considerable gains.
  • Investors interested in high returns should go for this type of mutual fund. They deliver better returns than any traditional savings scheme, like a fixed deposit. However, the risk is also comparatively higher. These schemes also suit you if you search for investments with high credit quality and liquidity.

Popular Banking and PSU Mutual Funds

  • Min SIP Investment Amt
  • ₹ 500
  • AUM (Cr.)
  • ₹ 479
  • 3Y Return
  • 7.86%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 5,409
  • 3Y Return
  • 7.84%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 9,489
  • 3Y Return
  • 7.77%

  • Min SIP Investment Amt
  • ₹ 500
  • AUM (Cr.)
  • ₹ 1,099
  • 3Y Return
  • 7.73%

  • Min SIP Investment Amt
  • ₹ 200
  • AUM (Cr.)
  • ₹ 1,879
  • 3Y Return
  • 7.70%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 5,599
  • 3Y Return
  • 7.67%

  • Min SIP Investment Amt
  • ₹ 1000
  • AUM (Cr.)
  • ₹ 97
  • 3Y Return
  • 7.64%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 517
  • 3Y Return
  • 7.64%

  • Min SIP Investment Amt
  • ₹ 500
  • AUM (Cr.)
  • ₹ 4,025
  • 3Y Return
  • 7.62%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 5,294
  • 3Y Return
  • 7.61%

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