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Top 5 Best Banking and PSU Debt Funds 2020

Updated on January 23, 2020 , 1262 views

Banking and PSU Debt Funds are the new sub-category introduced by the Securities and Exchange Board of India (SEBI) in the debt Mutual Fund category. These funds predominantly invests in debt and money market instruments consisting of securities issued by entities such as Banks, Public Financial Institutions, Public Sector Undertakings, etc. This option is considered to maintain an optimum balance of liquidity, safety, and yield.

The Banking and PSU Debt fund belongs to the short term category of debt funds that aims to offer secured returns and minimise risk by Investing in good-quality debt instruments predominately issued by banks and public sector undertakings. Investors who are keen to invest for a short duration, ideally for 2-3 years can invest in this scheme.

Here are some of the best performing Banking and PSU debt Funds 2020 - 2021.

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Top Performing Banking and PSU Debt Funds

Fund	NAV	Net Assets (Cr)	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	2019 (%)	Debt Yield (YTM)	Mod. Duration	Eff. Maturity
HDFC Banking and PSU Debt Fund Growth	₹16.2463 ↑ 0.01	₹4,848	2.2	4.8	10.4	7.3	10.2	7.24%	2Y 3M 29D	3Y 18D
UTI Banking & PSU Debt Fund Growth	₹14.8701 ↑ 0.01	₹146	1.7	1.9	1.4	3.9	-1	7.01%	2Y 8M 16D	3Y 6M 20D
Kotak Banking and PSU Debt fund Growth	₹45.9523 ↑ 0.01	₹4,204	2.2	4.5	11.1	7.9	10.8	7.09%	2Y 10M 10D	3Y 9M 22D
ICICI Prudential Banking and PSU Debt Fund Growth	₹22.9409 ↑ 0.01	₹8,317	2.4	4.1	10.2	7	10.1	7.01%	2Y 7M 24D	4Y 1M 20D
Aditya Birla Sun Life Banking & PSU Debt Fund Growth	₹257.273 ↑ 0.13	₹9,845	1.9	3.9	10.2	7.3	9.9	6.7%	2Y 3M 14D	2Y 11M 16D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Jan 20

Top 5 Best Performing Banking and PSU Debt Funds

1. HDFC Banking and PSU Debt Fund

To generate regular income through investments in debt and money market instruments consisting predominantly of securities issued by entities such as Scheduled Commercial Banks and Public Sector undertakings. There is no assurance that the investment objective of the Scheme will be realized.

HDFC Banking and PSU Debt Fund is a Debt - Banking & PSU Debt fund was launched on 26 Mar 14. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 8.7% since its launch. Ranked 6 in Banking & PSU Debt category. Return for 2019 was 10.2% , 2018 was 5.9% and 2017 was 6.3% .

Below is the key information for HDFC Banking and PSU Debt Fund

HDFC Banking and PSU Debt Fund Growth
Launch Date	26 Mar 14
NAV (24 Jan 20)	₹16.2463 ↑ 0.01 (0.04 %)
Net Assets (Cr)	₹4,848 on 31 Dec 19
Category	Debt - Banking & PSU Debt
AMC	HDFC Asset Management Company Limited
Rating	☆☆☆☆☆
Risk	Moderately Low
Expense Ratio	0.26
Sharpe Ratio	3.44
Information Ratio	0.06
Alpha Ratio	-0.99
Min Investment	5,000
Min SIP Investment	500
Exit Load	NIL
Yield to Maturity	7.24%
Effective Maturity	3 Years 18 Days
Modified Duration	2 Years 3 Months 29 Days

Growth of 10,000 investment over the years.

Date	Value
31 Dec 14	₹10,000
31 Dec 15	₹10,976
31 Dec 16	₹12,164
31 Dec 17	₹12,933
31 Dec 18	₹13,692
31 Dec 19	₹15,093

HDFC Banking and PSU Debt Fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148 Invest Now

Returns for HDFC Banking and PSU Debt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

Duration	Returns
1 Month	0.8%
3 Month	2.2%
6 Month	4.8%
1 Year	10.4%
3 Year	7.3%
5 Year	8.6%
10 Year
15 Year
Since launch	8.7%

Historical performance (Yearly) on absolute basis

Year	Returns
2019	10.2%
2018	5.9%
2017	6.3%
2016	10.8%
2015	9.8%
2014
2013
2012
2011
2010

Fund Manager information for HDFC Banking and PSU Debt Fund

Name	Since	Tenure
Anil Bamboli	26 Mar 14	5.6 Yr.
Chirag Dagli	31 Jul 19	0.25 Yr.

Data below for HDFC Banking and PSU Debt Fund as on 31 Dec 19

Asset Allocation

Asset Class	Value
Cash	12.95%
Debt	87.05%

Debt Sector Allocation

Sector	Value
Government	50.31%
Corporate	36.74%
Cash Equivalent	12.95%

Credit Quality

Rating	Value
A	9.32%
AA	17.28%
AAA	73.29%
Below B	0.11%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
National Highways Authority Of India Debentures \| -	5%	₹209 Cr	2,050
Food Corporation Of India Debentures \| -	5%	₹193 Cr	1,800
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT Debentures \| -	4%	₹184 Cr	1,750
Treps - Tri-Party Repo CBLO/Reverse Repo \| -	4%	₹155 Cr
IDFC First Bank Limited Certificate of Deposit \| -	4%	₹152 Cr	15,500
Syndicate Bank Debentures \| -	3%	₹137 Cr	1,350
Net Current Assets Net Current Assets \| -	3%	₹134 Cr
Housing Development Finance Corporation Limited Debentures \| -	3%	₹129 Cr	1,250
Power Grid Corporation Of India Limited Debentures \| -	3%	₹128 Cr	1,250
Tata International Limited Debentures \| -	3%	₹125 Cr	1,250

2. UTI Banking & PSU Debt Fund

The investment objective of the scheme is to generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of predominantly debt & money market securities by Banks and Public Sector Undertakings (PSUs).

UTI Banking & PSU Debt Fund is a Debt - Banking & PSU Debt fund was launched on 3 Feb 14. It is a fund with Moderate risk and has given a CAGR/Annualized return of 6.9% since its launch. Ranked 3 in Banking & PSU Debt category. Return for 2019 was -1% , 2018 was 6.8% and 2017 was 6.4% .

Below is the key information for UTI Banking & PSU Debt Fund

UTI Banking & PSU Debt Fund Growth
Launch Date	3 Feb 14
NAV (24 Jan 20)	₹14.8701 ↑ 0.01 (0.04 %)
Net Assets (Cr)	₹146 on 31 Dec 19
Category	Debt - Banking & PSU Debt
AMC	UTI Asset Management Company Ltd
Rating	☆☆☆☆☆
Risk	Moderate
Expense Ratio	0.35
Sharpe Ratio	-0.51
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	500
Exit Load	NIL
Yield to Maturity	7.01%
Effective Maturity	3 Years 6 Months 20 Days
Modified Duration	2 Years 8 Months 16 Days

Growth of 10,000 investment over the years.

Date	Value
31 Dec 14	₹10,000
31 Dec 15	₹10,859
31 Dec 16	₹12,128
31 Dec 17	₹12,902
31 Dec 18	₹13,781
31 Dec 19	₹13,638

UTI Banking & PSU Debt Fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132 Invest Now

Returns for UTI Banking & PSU Debt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

Duration	Returns
1 Month	0.6%
3 Month	1.7%
6 Month	1.9%
1 Year	1.4%
3 Year	3.9%
5 Year	6.4%
10 Year
15 Year
Since launch	6.9%

Historical performance (Yearly) on absolute basis

Year	Returns
2019	-1%
2018	6.8%
2017	6.4%
2016	11.7%
2015	8.6%
2014
2013
2012
2011
2010

Fund Manager information for UTI Banking & PSU Debt Fund

Name	Since	Tenure
Sudhir Agarwal	3 Feb 14	5.83 Yr.

Data below for UTI Banking & PSU Debt Fund as on 31 Dec 19

Asset Allocation

Asset Class	Value
Cash	18.8%
Debt	81.2%

Debt Sector Allocation

Sector	Value
Government	53.13%
Corporate	29.37%
Cash Equivalent	17.5%

Credit Quality

Rating	Value
AAA	85.03%
Below B	14.97%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Net Current Assets Net Current Assets \| -	10%	₹15 Cr	00
NTPC Limited Debentures \| -	9%	₹14 Cr	130
POWER FINANCE CORPORATION LIMITED Debentures \| -	9%	₹13 Cr	130
HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED (HUDCO) Debentures \| -	9%	₹13 Cr	130
NATIONAL HIGHWAYS AUTHORITY OF INDIA Debentures \| -	9%	₹13 Cr	130
Small Industries Development Bank Of India Debentures \| -	9%	₹13 Cr	130
Rec Limited Debentures \| -	9%	₹13 Cr	130 ↑ 130
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT Debentures \| -	7%	₹11 Cr	100
Hindustan Petroleum Corporation Limited Debentures \| -	7%	₹10 Cr	100
Jorabat Shillong Expressway Limited Debentures \| -	7%	₹10 Cr	2,000

3. Kotak Banking and PSU Debt fund

To generate income by predominantly investing in debt & money market securities issued by Banks & PSUs and Reverse Repos in such securities, sovereign securities issued by the Central Government and State Governments, and / or any security unconditionally guaranteed by the Govt. of India.

Kotak Banking and PSU Debt fund is a Debt - Banking & PSU Debt fund was launched on 29 Dec 98. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of since its launch. Ranked 19 in Banking & PSU Debt category. Return for 2019 was 10.8% , 2018 was 6.7% and 2017 was 6.2% .

Below is the key information for Kotak Banking and PSU Debt fund

Kotak Banking and PSU Debt fund Growth
Launch Date	29 Dec 98
NAV (24 Jan 20)	₹45.9523 ↑ 0.01 (0.03 %)
Net Assets (Cr)	₹4,204 on 31 Dec 19
Category	Debt - Banking & PSU Debt
AMC	Kotak Mahindra Asset Management Co Ltd
Rating	☆☆☆☆
Risk	Moderately Low
Expense Ratio	0.25
Sharpe Ratio	3.53
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	7.09%
Effective Maturity	3 Years 9 Months 22 Days
Modified Duration	2 Years 10 Months 10 Days

Growth of 10,000 investment over the years.

Date	Value
31 Dec 14	₹10,000
31 Dec 15	₹10,856
31 Dec 16	₹11,938
31 Dec 17	₹12,674
31 Dec 18	₹13,525
31 Dec 19	₹14,992

Kotak Banking and PSU Debt fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148 Invest Now

Returns for Kotak Banking and PSU Debt fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

Duration	Returns
1 Month	0.9%
3 Month	2.2%
6 Month	4.5%
1 Year	11.1%
3 Year	7.9%
5 Year	8.5%
10 Year
15 Year
Since launch

Historical performance (Yearly) on absolute basis

Year	Returns
2019	10.8%
2018	6.7%
2017	6.2%
2016	10%
2015	8.6%
2014	9.5%
2013	9.8%
2012	7.6%
2011	7.9%
2010	3.7%

Fund Manager information for Kotak Banking and PSU Debt fund

Name	Since	Tenure
Deepak Agrawal	15 Apr 08	11.63 Yr.

Data below for Kotak Banking and PSU Debt fund as on 31 Dec 19

Asset Allocation

Asset Class	Value
Cash	20.39%
Debt	79.61%

Debt Sector Allocation

Sector	Value
Government	47%
Corporate	46%
Cash Equivalent	7%

Credit Quality

Rating	Value
AA	22.17%
AAA	77.83%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
GOVT STOCK Sovereign Bonds \| -	6%	₹224 Cr	21,500,000
Net Current Assets/(Liabilities) Net Current Assets \| -	5%	₹176 Cr
Food Corporation Of India Debentures \| -	5%	₹161 Cr	1,500
STATE BANK OF INDIA Debentures \| -	4%	₹151 Cr	1,450
REC LIMITED Debentures \| -	4%	₹128 Cr	1,250
Axis Bank Limited Debentures \| -	3%	₹121 Cr	1,200
POWER FINANCE CORPORATION LIMITED Debentures \| -	3%	₹106 Cr	1,000 ↑ 500
ICICI Bank Limited Debentures \| -	3%	₹102 Cr	1,000
Rural Electrification Corporation Limited Debentures \| -	3%	₹100 Cr	1,000 ↑ 1,000
NATIONAL HIGHWAYS AUTHORITY OF INDIA Debentures \| -	3%	₹100 Cr	1,000

4. ICICI Prudential Banking and PSU Debt Fund

The investment objective of the Scheme is to generate regular income through investments in a basket of debt and money market instruments consisting predominantly of securities issued by entities such as Banks and Public Sector Undertakings (PSU) with a view to providing reasonable returns,while maintaining an optimum balance of safety, liquidity and yield.

ICICI Prudential Banking and PSU Debt Fund is a Debt - Banking & PSU Debt fund was launched on 1 Jan 10. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.6% since its launch. Ranked 13 in Banking & PSU Debt category. Return for 2019 was 10.1% , 2018 was 5.7% and 2017 was 5.6% .

Below is the key information for ICICI Prudential Banking and PSU Debt Fund

ICICI Prudential Banking and PSU Debt Fund Growth
Launch Date	1 Jan 10
NAV (24 Jan 20)	₹22.9409 ↑ 0.01 (0.04 %)
Net Assets (Cr)	₹8,317 on 31 Dec 19
Category	Debt - Banking & PSU Debt
AMC	ICICI Prudential Asset Management Company Limited
Rating	☆☆☆☆
Risk	Moderate
Expense Ratio	0.9
Sharpe Ratio	3.62
Information Ratio	-1.22
Alpha Ratio	5.59
Min Investment	5,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	7.01%
Effective Maturity	4 Years 1 Month 20 Days
Modified Duration	2 Years 7 Months 24 Days

Growth of 10,000 investment over the years.

Date	Value
31 Dec 14	₹10,000
31 Dec 15	₹10,864
31 Dec 16	₹12,236
31 Dec 17	₹12,924
31 Dec 18	₹13,662
31 Dec 19	₹15,043

ICICI Prudential Banking and PSU Debt Fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148 Invest Now

Returns for ICICI Prudential Banking and PSU Debt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

Duration	Returns
1 Month	0.8%
3 Month	2.4%
6 Month	4.1%
1 Year	10.2%
3 Year	7%
5 Year	8.4%
10 Year
15 Year
Since launch	8.6%

Historical performance (Yearly) on absolute basis

Year	Returns
2019	10.1%
2018	5.7%
2017	5.6%
2016	12.6%
2015	8.6%
2014	10.5%
2013	8.9%
2012	8.9%
2011	9.1%
2010

Fund Manager information for ICICI Prudential Banking and PSU Debt Fund

Name	Since	Tenure
Rahul Goswami	27 Sep 12	7.18 Yr.
Chandni Gupta	15 Jan 15	4.88 Yr.

Data below for ICICI Prudential Banking and PSU Debt Fund as on 31 Dec 19

Asset Allocation

Asset Class	Value
Cash	17.43%
Debt	82.57%

Debt Sector Allocation

Sector	Value
Government	45.95%
Corporate	44.13%
Cash Equivalent	9.92%

Credit Quality

Rating	Value
AA	19.21%
AAA	80.79%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
GOVT STOCK Sovereign Bonds \| -	11%	₹875 Cr	83,500,000 ↑ 11,500,000
ICICI Bank Limited Debentures \| -	5%	₹408 Cr	3,983
NATIONAL HIGHWAYS AUTHORITY OF INDIA Debentures \| -	4%	₹333 Cr	3,300 ↑ 750
HDFC Bank Limited Debentures \| -	4%	₹321 Cr	3,150
Housing And Urban Development Corporation Ltd. Debentures \| -	3%	₹257 Cr	2,400
State Bank Of India Debentures \| -	3%	₹244 Cr	2,350 ↓ -750
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT Debentures \| -	3%	₹239 Cr	2,200
Axis Bank Limited Debentures \| -	3%	₹227 Cr	2,249
Bank Of Baroda Certificate of Deposit \| -	2%	₹172 Cr	17,500
State Bank Of India Debentures \| -	2%	₹146 Cr	1,443

5. Aditya Birla Sun Life Banking & PSU Debt Fund

(Erstwhile Aditya Birla Sun Life Treasury Optimizer Fund)

An Open-ended short term income scheme with the objective to generate income and capital appreciation by investing 100% of the corpus in a diversified portfolio of debt and money market securities with relatively low levels of interest rate risk.

Aditya Birla Sun Life Banking & PSU Debt Fund is a Debt - Banking & PSU Debt fund was launched on 9 May 08. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.4% since its launch. Ranked 9 in Banking & PSU Debt category. Return for 2019 was 9.9% , 2018 was 6.6% and 2017 was 5.6% .

Below is the key information for Aditya Birla Sun Life Banking & PSU Debt Fund

Aditya Birla Sun Life Banking & PSU Debt Fund Growth
Launch Date	9 May 08
NAV (24 Jan 20)	₹257.273 ↑ 0.13 (0.05 %)
Net Assets (Cr)	₹9,845 on 31 Dec 19
Category	Debt - Banking & PSU Debt
AMC	Birla Sun Life Asset Management Co Ltd
Rating	☆☆☆☆
Risk	Moderate
Expense Ratio	0.64
Sharpe Ratio	2.97
Information Ratio	0
Alpha Ratio	0
Min Investment	1,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	6.7%
Effective Maturity	2 Years 11 Months 16 Days
Modified Duration	2 Years 3 Months 14 Days

Growth of 10,000 investment over the years.

Date	Value
31 Dec 14	₹10,000
31 Dec 15	₹10,852
31 Dec 16	₹12,189
31 Dec 17	₹12,873
31 Dec 18	₹13,727
31 Dec 19	₹15,086

Aditya Birla Sun Life Banking & PSU Debt Fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148 Invest Now

Returns for Aditya Birla Sun Life Banking & PSU Debt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

Duration	Returns
1 Month	0.7%
3 Month	1.9%
6 Month	3.9%
1 Year	10.2%
3 Year	7.3%
5 Year	8.5%
10 Year
15 Year
Since launch	8.4%

Historical performance (Yearly) on absolute basis

Year	Returns
2019	9.9%
2018	6.6%
2017	5.6%
2016	12.3%
2015	8.5%
2014	12.5%
2013	9.6%
2012	9.9%
2011	9.3%
2010	5.8%

Fund Manager information for Aditya Birla Sun Life Banking & PSU Debt Fund

Name	Since	Tenure
Maneesh Dangi	1 Apr 17	2.58 Yr.
Kaustubh Gupta	29 Sep 09	10.09 Yr.

Data below for Aditya Birla Sun Life Banking & PSU Debt Fund as on 31 Dec 19

Asset Allocation

Asset Class	Value
Cash	17.15%
Debt	82.85%

Debt Sector Allocation

Sector	Value
Government	49.79%
Corporate	41.14%
Cash Equivalent	9.06%

Credit Quality

Rating	Value
AA	4.48%
AAA	95.52%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Clearing Corporation Of India Limited CBLO \| -	4%	₹388 Cr
Power Finance Corporation Limited Debentures \| -	3%	₹311 Cr	3,105 ↑ 3,105
SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA Debentures \| -	3%	₹291 Cr	2,850
State Bank Of India Debentures \| -	3%	₹284 Cr	2,650
Net Receivables / (Payables) Net Current Assets \| -	3%	₹269 Cr
ONGC Petro Additions Limited Debentures \| -	3%	₹256 Cr	255
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT Debentures \| -	2%	₹237 Cr	2,250 ↑ 500
INDIAN RAILWAY FINANCE CORPORATION LIMITED Debentures \| -	2%	₹227 Cr	2,150
7.72% GS 2025 Sovereign Bonds \| -	2%	₹206 Cr	19,500,000
Power Finance Corporation Ltd. Debentures \| -	2%	₹202 Cr	2,000

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Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.