Open Demat Account
  1. Home
  2. Mutual Funds

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.

Kickstart your SIP journey with just ₹100!

+91
Resend OTP
OTP Sent Successfully

By proceeding, you agree to the T&C.

hero_form

List of Banking and PSU Mutual Funds

Filters

A blue kalash on a orange rectangle, next to a blue rectangle with uti written inside it in white. overall over UTI Mutual Fund written in blueUTI-Banking & PSU Debt Fund - Direct Growth

5.66%

Fund Size (Cr.) - 1,448

Invest
image of a person with long hair inside a circular frameFranklin India Banking & PSU Debt Fund-DirectGrowth

5.16%

Fund Size (Cr.) - 565

Invest
Blue hand and diya inside yellow flowerLIC MF Banking & PSU Debt Fund - Direct Growth

4.19%

Fund Size (Cr.) - 1,598

Invest
Blue circular emblem with three keyhole-shaped designs and a curved triangle together forming a tree like structure.SBI Banking and PSU Debt Fund - Direct Growth

4.34%

Fund Size (Cr.) - 3,512

Invest
Blue and red infinity-style symbol with Kotak Mutual fund written in whiteKotak Banking and PSU Debt Fund - Direct Growth

3.95%

Fund Size (Cr.) - 4,761

Invest
White flower-inspired icon with blue backgroundEdelweiss Banking & Psu Debt Fund-Dir Growth

3.91%

Fund Size (Cr.) - 3,137

Invest
Red lamp lilke geometric icon with flame like illustration in orange and yellowBandhan Banking and PSU Debt Fund - Direct Growth

4.95%

Fund Size (Cr.) - 11,893

Invest
Blue mountain-inspired graphic above Invesco Mutual Fund written in blueInvesco India Banking and PSU Debt Fund - Direct Growth

3.67%

Fund Size (Cr.) - 80

Invest
Red geometric emblem with white geometric shape in betweenNippon India Banking and PSU Debt Fund - Dir Growth

3.64%

Fund Size (Cr.) - 5,057

Invest
Orange and red emblem with small i written in white.ICICI Pru Banking and PSU Debt Fund - Direct Growth

3.99%

Fund Size (Cr.) - 8,041

Invest
View More

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.)
  • ₹ 1,448
  • 3Y Returns
  • 7.46%

  • UTI-Banking & PSU Debt Fund - Direct Growth is an Banking and PSU Debt Fund scheme that was launched on 27-01-2014 and is currently under the management of our experienced fund manager Anurag Mittal. With an impressive AUM of ₹1,448 Crores, this scheme's latest NAV is ₹24.1132 as of 10/23/2026 12:00:00 AM.


    UTI-Banking & PSU Debt Fund - Direct Growth scheme has delivered a return performance of 5.66% in the last 1 year, 7.46% in the last 3 years, and an 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 Debt Fund.

  • Min SIP Investment Amt
  • ₹ 500
  • AUM (Cr.)
  • ₹ 1,448
  • 3Y Returns
  • 7.46%

  • Min SIP Investment Amt
  • ₹ 500
  • AUM (Cr.)
  • ₹ 565
  • 3Y Returns
  • 7.28%

  • Franklin India Banking & PSU Debt Fund-DirectGrowth is an Banking and PSU Debt Fund scheme that was launched on 02-04-2014 and is currently under the management of our experienced fund manager Chandni Gupta. With an impressive AUM of ₹565 Crores, this scheme's latest NAV is ₹25.272 as of 10/23/2026 12:00:00 AM.


    Franklin India Banking & PSU Debt Fund-DirectGrowth scheme has delivered a return performance of 5.16% in the last 1 year, 7.28% in the last 3 years, and an 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 Debt Fund.

  • Min SIP Investment Amt
  • ₹ 500
  • AUM (Cr.)
  • ₹ 565
  • 3Y Returns
  • 7.28%

  • Min SIP Investment Amt
  • ₹ 200
  • AUM (Cr.)
  • ₹ 1,598
  • 3Y Returns
  • 7.12%

  • LIC MF Banking & PSU Debt Fund - Direct Growth is an Banking and PSU Debt Fund scheme that was launched on 01-01-2013 and is currently under the management of our experienced fund manager Pratik Harish Shroff. With an impressive AUM of ₹1,598 Crores, this scheme's latest NAV is ₹39.9826 as of 10/23/2026 12:00:00 AM.


    LIC MF Banking & PSU Debt Fund - Direct Growth scheme has delivered a return performance of 4.19% in the last 1 year, 7.12% in the last 3 years, and an since its launch. With a minimum SIP investment of just ₹ 200, this scheme offers a great investment opportunity for those looking to invest in Banking and PSU Debt Fund.

  • Min SIP Investment Amt
  • ₹ 200
  • AUM (Cr.)
  • ₹ 1,598
  • 3Y Returns
  • 7.12%

  • Min SIP Investment Amt
  • ₹ 500
  • AUM (Cr.)
  • ₹ 3,512
  • 3Y Returns
  • 7.06%

  • SBI Banking and PSU Debt Fund - Direct Growth is an Banking and PSU Debt Fund scheme that was launched on 30-09-2009 and is currently under the management of our experienced fund manager Ardhendu Bhattacharya. With an impressive AUM of ₹3,512 Crores, this scheme's latest NAV is ₹3534.9161 as of 10/23/2026 12:00:00 AM.


    SBI Banking and PSU Debt Fund - Direct Growth scheme has delivered a return performance of 4.34% in the last 1 year, 7.06% in the last 3 years, and an 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 Debt Fund.

  • Min SIP Investment Amt
  • ₹ 500
  • AUM (Cr.)
  • ₹ 3,512
  • 3Y Returns
  • 7.06%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 4,761
  • 3Y Returns
  • 7.04%

  • Kotak Banking and PSU Debt Fund - Direct Growth is an Banking and PSU Debt Fund scheme that was launched on 01-01-2013 and is currently under the management of our experienced fund manager Deepak Agrawal. With an impressive AUM of ₹4,761 Crores, this scheme's latest NAV is ₹72.4015 as of 10/23/2026 12:00:00 AM.


    Kotak Banking and PSU Debt Fund - Direct Growth scheme has delivered a return performance of 3.95% in the last 1 year, 7.04% in the last 3 years, and an 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 Debt Fund.

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 4,761
  • 3Y Returns
  • 7.04%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 3,137
  • 3Y Returns
  • 7.03%

  • Edelweiss Banking & Psu Debt Fund-Dir Growth is an Banking and PSU Debt Fund scheme that was launched on 26-08-2013 and is currently under the management of our experienced fund manager Dhawal Dalal. With an impressive AUM of ₹3,137 Crores, this scheme's latest NAV is ₹27.0854 as of 10/23/2026 12:00:00 AM.


    Edelweiss Banking & Psu Debt Fund-Dir Growth scheme has delivered a return performance of 3.91% in the last 1 year, 7.03% in the last 3 years, and an 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 Debt Fund.

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 3,137
  • 3Y Returns
  • 7.03%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 11,893
  • 3Y Returns
  • 6.99%

  • Bandhan Banking and PSU Debt Fund - Direct Growth is an Banking and PSU Debt Fund scheme that was launched on 26-02-2013 and is currently under the management of our experienced fund manager Suyash Choudhary. With an impressive AUM of ₹11,893 Crores, this scheme's latest NAV is ₹27.12 as of 10/23/2026 12:00:00 AM.


    Bandhan Banking and PSU Debt Fund - Direct Growth scheme has delivered a return performance of 4.95% in the last 1 year, 6.99% in the last 3 years, and an 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 Debt Fund.

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 11,893
  • 3Y Returns
  • 6.99%

  • Min SIP Investment Amt
  • ₹ 1000
  • AUM (Cr.)
  • ₹ 80
  • 3Y Returns
  • 6.90%

  • Invesco India Banking and PSU Debt Fund - Direct Growth is an Banking and PSU Debt Fund scheme that was launched on 01-01-2013 and is currently under the management of our experienced fund manager Vikas Garg. With an impressive AUM of ₹80 Crores, this scheme's latest NAV is ₹2565.9397 as of 10/23/2026 12:00:00 AM.


    Invesco India Banking and PSU Debt Fund - Direct Growth scheme has delivered a return performance of 3.67% in the last 1 year, 6.90% in the last 3 years, and an since its launch. With a minimum SIP investment of just ₹ 1000, this scheme offers a great investment opportunity for those looking to invest in Banking and PSU Debt Fund.

  • Min SIP Investment Amt
  • ₹ 1000
  • AUM (Cr.)
  • ₹ 80
  • 3Y Returns
  • 6.90%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 5,057
  • 3Y Returns
  • 6.88%

  • Nippon India Banking and PSU Debt Fund - Dir Growth is an Banking and PSU Debt Fund scheme that was launched on 05-05-2015 and is currently under the management of our experienced fund manager Pranay Sinha. With an impressive AUM of ₹5,057 Crores, this scheme's latest NAV is ₹22.8118 as of 10/23/2026 12:00:00 AM.


    Nippon India Banking and PSU Debt Fund - Dir Growth scheme has delivered a return performance of 3.64% in the last 1 year, 6.88% in the last 3 years, and an 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 Debt Fund.

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 5,057
  • 3Y Returns
  • 6.88%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 8,041
  • 3Y Returns
  • 6.85%

  • ICICI Pru Banking and PSU Debt Fund - Direct Growth is an Banking and PSU Debt Fund scheme that was launched on 01-01-2013 and is currently under the management of our experienced fund manager Manish Banthia. With an impressive AUM of ₹8,041 Crores, this scheme's latest NAV is ₹36.2646 as of 10/23/2026 12:00:00 AM.


    ICICI Pru Banking and PSU Debt Fund - Direct Growth scheme has delivered a return performance of 3.99% in the last 1 year, 6.85% in the last 3 years, and an 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 Debt Fund.

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 8,041
  • 3Y Returns
  • 6.85%
Clear All

Open Free Demat Account

Be a part of 5paisa community - The first listed discount broker of India.

+91
Resend OTP

By proceeding, you agree to all T&C*

footer_form