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.

Best Banking and PSU Mutual Funds

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Who Should Invest in Banking & PSU Mutual Funds?

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Popular Banking and PSU Mutual Funds

  • Fund Name
  • Min SIP Investment Amt
  • AUM (Cr.)
  • 3Y Return

AXIS Banking & PSU Debt Fund is an Banking and PSU scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Aditya Pagaria. With an impressive AUM of ₹14,783 Crores, this scheme's latest NAV is ₹2324.9151 as of 26-05-23.

AXIS Banking & PSU Debt Fund scheme has delivered a return performance of 6.3% in the last 1 year, 5.3% in the last 3 years, and an 7.9% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Banking and PSU funds.

  • Min SIP Investment Amt
  • ₹5,000
  • AUM (Cr.)
  • ₹14,783
  • 3Y Return
  • 6.3%

SBI Banking and PSU Fund is an Banking and PSU scheme that was launched on 08-01-13 and is currently under the management of our experienced fund manager Rajeev Radhakrishnan. With an impressive AUM of ₹5,147 Crores, this scheme's latest NAV is ₹2821.2519 as of 26-05-23.

SBI Banking and PSU Fund scheme has delivered a return performance of 6.6% in the last 1 year, 5.1% in the last 3 years, and an 8% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Banking and PSU funds.

  • Min SIP Investment Amt
  • ₹5,000
  • AUM (Cr.)
  • ₹5,147
  • 3Y Return
  • 6.6%

ICICI Pru Banking & PSU Debt Fund is an Banking and PSU scheme that was launched on 13-03-13 and is currently under the management of our experienced fund manager Rahul Goswami. With an impressive AUM of ₹7,950 Crores, this scheme's latest NAV is ₹28.9254 as of 26-05-23.

ICICI Pru Banking & PSU Debt Fund scheme has delivered a return performance of 7.3% in the last 1 year, 6% in the last 3 years, and an 8.3% since its launch. With a minimum SIP investment of just ₹500, this scheme offers a great investment opportunity for those looking to invest in Banking and PSU funds.

  • Min SIP Investment Amt
  • ₹500
  • AUM (Cr.)
  • ₹7,950
  • 3Y Return
  • 7.3%

HDFC Banking and PSU Debt Fund is an Banking and PSU scheme that was launched on 26-03-14 and is currently under the management of our experienced fund manager Anil Bamboli. With an impressive AUM of ₹5,831 Crores, this scheme's latest NAV is ₹20.3497 as of 26-05-23.

HDFC Banking and PSU Debt Fund scheme has delivered a return performance of 6.8% in the last 1 year, 5.8% in the last 3 years, and an 8.1% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in Banking and PSU funds.

  • Min SIP Investment Amt
  • ₹100
  • AUM (Cr.)
  • ₹5,831
  • 3Y Return
  • 6.8%

Nippon India Banking & PSU Debt Fund is an Banking and PSU scheme that was launched on 15-05-15 and is currently under the management of our experienced fund manager Pranay Sinha. With an impressive AUM of ₹5,255 Crores, this scheme's latest NAV is ₹18.3248 as of 26-05-23.

Nippon India Banking & PSU Debt Fund scheme has delivered a return performance of 7% in the last 1 year, 5.6% in the last 3 years, and an 7.8% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Banking and PSU funds.

  • Min SIP Investment Amt
  • ₹5,000
  • AUM (Cr.)
  • ₹5,255
  • 3Y Return
  • 7%

Aditya Birla SL Banking&PSU Debt Fund is an Banking and PSU scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Kaustubh Gupta. With an impressive AUM of ₹8,258 Crores, this scheme's latest NAV is ₹323.7055 as of 26-05-23.

Aditya Birla SL Banking&PSU Debt Fund scheme has delivered a return performance of 6.8% in the last 1 year, 5.7% in the last 3 years, and an 8.6% since its launch. With a minimum SIP investment of just ₹1,000, this scheme offers a great investment opportunity for those looking to invest in Banking and PSU funds.

  • Min SIP Investment Amt
  • ₹1,000
  • AUM (Cr.)
  • ₹8,258
  • 3Y Return
  • 6.8%

PGIM India Banking&PSU Debt Fund is an Banking and PSU scheme that was launched on 10-03-13 and is currently under the management of our experienced fund manager Puneet Pal. With an impressive AUM of ₹48 Crores, this scheme's latest NAV is ₹21.9501 as of 26-05-23.

PGIM India Banking&PSU Debt Fund scheme has delivered a return performance of 6.3% in the last 1 year, 5.3% in the last 3 years, and an 8% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Banking and PSU funds.

  • Min SIP Investment Amt
  • ₹5,000
  • AUM (Cr.)
  • ₹48
  • 3Y Return
  • 6.3%

DSP Banking & Psu Debt Fund is an Banking and PSU scheme that was launched on 14-09-13 and is currently under the management of our experienced fund manager Vikram Chopra. With an impressive AUM of ₹2,581 Crores, this scheme's latest NAV is ₹21.1853 as of 26-05-23.

DSP Banking & Psu Debt Fund scheme has delivered a return performance of 6.5% in the last 1 year, 5% in the last 3 years, and an 8% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in Banking and PSU funds.

  • Min SIP Investment Amt
  • ₹100
  • AUM (Cr.)
  • ₹2,581
  • 3Y Return
  • 6.5%

Kotak Banking and PSU Debt Fund is an Banking and PSU scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Deepak Agrawal. With an impressive AUM of ₹6,415 Crores, this scheme's latest NAV is ₹57.8417 as of 26-05-23.

Kotak Banking and PSU Debt Fund scheme has delivered a return performance of 7.2% in the last 1 year, 5.8% in the last 3 years, and an 8.3% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Banking and PSU funds.

  • Min SIP Investment Amt
  • ₹5,000
  • AUM (Cr.)
  • ₹6,415
  • 3Y Return
  • 7.2%

Frequently Asked Questions

How to invest in Banking & PSU mutual funds?

Investing in Banking & PSU funds is simple and can be done online or offline. You can either visit the AMC physically or consult a broker to invest through offline mode. Alternatively, you can visit an online investment platform like 5Paisa.com and choose from many mutual funds available in one place. You can compare the funds you are interested in and use the lumpsum or SIP calculator to estimate your returns.

How do Banking & PSU mutual funds work?

These are debt mutual fund schemes where almost 80% of the assets are invested in debentures, bonds, and certificates of deposits. The money is mainly invested in securities with low maturity periods and high liquidity.

It considers investing in public sector banks operating under the central government. It makes them much safer than private sector undertakings. These mutual funds are known to deliver high returns, but the returns depend a lot on market volatility.

What minimum amount do you require to invest in Banking & PSU funds?

The fund house specifies the scheme’s minimum investment amount for Banking & PSU funds. Generally, it can be anywhere from INR 1000, while the minimum SIP amount can start as low as INR 100.

Do Banking & PSU funds have a lock-in period?

There is no holding period for these mutual funds; investors are free to exit their positions anytime.

What is the ideal investment horizon for Banking & PSU funds?

These funds are ideal for ultra-short to short-term investment with a maximum duration of three years. The ideal holding period for these schemes is between one to three years, so they are suitable for investors with short-term investment goals.

What is the risk rating for Banking & PSU funds?

As these funds invest in debt securities for a short duration, market volatility does not influence their returns, making them an ideal low-risk investment option. Though these funds are not entirely risk-free, they carry lesser risk than other debt funds.

Do Banking & PSU funds have any limitations for asset allocation?

According to the regulations of the SEBI, Banking & PSU funds must invest a minimum of 80% of assets in debt securities issued by public sector undertakings and banks.

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