Banking & PSU Mutual Funds
At least 80% in debt of banks, PSUs and public financial institutions.
Issuers with the strongest balance sheets in the country, many state-backed. One of the safest places in debt outside government securities.
Who it suits. Investors who want safety close to a gilt fund with a little more yield. Hold for 2 to 3 years.
Regular plans in this category
- UTI Banking & PSU Debt FundUTI Mutual Fund · NAV ₹23.58 5.9% 7.2% 7.5%
- ICICI Prudential Banking and PSU Debt FundICICI Prudential Mutual Fund · NAV ₹34.88 5.2% 6.8% 6.2%
- Franklin India Banking & PSU Debt FundFranklin Templeton Mutual Fund · NAV ₹24.14 6.0% 7.1% 6.1%
- Kotak Banking and PSU Debt FundKotak Mahindra Mutual Fund · NAV ₹69.54 5.1% 6.9% 6.0%
- Bandhan Banking and PSU Debt FundBandhan Mutual Fund · NAV ₹26.29 5.4% 6.8% 5.9%
- Axis Banking and PSU Debt FundAxis Mutual Fund · NAV ₹2,796.78 4.7% 6.6% 5.8%
- Sundaram Banking and PSU Debt Fund (Formerly Known as Sundaram Banking and PSU Fund)Sundaram Mutual Fund · NAV ₹45.75 4.8% 6.9% 5.8%
- HDFC Banking and PSU Debt FundHDFC Mutual Fund · NAV ₹24.34 4.6% 6.6% 5.8%
- Nippon India Banking and PSU Debt FundNippon India Mutual Fund · NAV ₹21.97 4.6% 6.6% 5.8%
- ITI Banking & PSU Debt FundITI Mutual Fund · NAV ₹13.77 4.4% 6.4% 5.7%
- LIC MF Banking & PSU Debt FundLIC Mutual Fund · NAV ₹36.97 4.9% 6.8% 5.7%
- DSP Banking and PSU Debt FundDSP Mutual Fund · NAV ₹25.30 4.0% 6.5% 5.7%
- Edelweiss Banking and PSU Debt FundEdelweiss Mutual Fund · NAV ₹26.07 4.5% 6.7% 5.6%
- SBI BANKING & PSU DEBT FUNDSBI Mutual Fund · NAV ₹3,308.22 4.7% 6.7% 5.6%
- Mirae Asset Banking and PSU Debt FundMirae Asset Mutual Fund · NAV ₹13.65 4.2% 6.4% 5.4%
- Invesco India Banking and PSU Debt FundInvesco Mutual Fund · NAV ₹2,399.41 4.6% 6.8% 5.2%
- Aditya Birla Sun Life Banking & PSU Debt FundAditya Birla Sun Life Mutual Fund · NAV ₹387.61 — — —
- Bajaj Finserv Banking and PSU Debt FundBajaj Finserv Mutual Fund · NAV ₹12.05 — — —
- Canara Robeco Banking and PSU Debt FundCanara Robeco Mutual Fund · NAV ₹12.73 4.3% 6.2% —
- HSBC Banking and PSU Debt FundHSBC Mutual Fund · NAV ₹25.73 4.6% 6.5% —
Point-to-point CAGR from AMFI NAV history, Regular plans only. Ordered by five-year return so the list has a shape, not because the order is a judgement. Past returns do not predict future ones — a fund near the top is usually there because its style suited the last five years, and styles take turns.
Other categories
Questions people ask
What is a Banking & PSU fund?
At least 80% in debt of banks, PSUs and public financial institutions. Issuers with the strongest balance sheets in the country, many state-backed. One of the safest places in debt outside government securities.
Who should invest in Banking & PSU funds?
Investors who want safety close to a gilt fund with a little more yield. A sensible holding period is 2 to 3 years.
How is this list ordered?
By five-year CAGR computed from AMFI's published NAV history, within one plan type. It is a sort, not a verdict — a fund near the top is there because its style suited the last five years, which is not a promise about the next five.
Should I choose the Direct or Regular plan?
A Direct plan holds exactly the same portfolio without the distributor commission, so its expense ratio is lower — commonly 0.5% to 1.2% a year — and it compounds ahead of the Regular plan for ever. Choose Regular only if you want an intermediary's advice and are content to pay for it annually.