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Top 5 Best Banking and PSU Debt Funds 2023 - Fincash

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Top 5 Best Banking and PSU Debt Funds 2023

Updated on September 17, 2023 , 19642 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 2023 - 2024.

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Banking-PSU-Funds

Top Performing Banking and PSU Debt Funds

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2022 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
HDFC Banking and PSU Debt Fund Growth ₹19.9507
↓ 0.00
₹6,3731.33.76.34.93.37.46%2Y 3M 6D3Y 5M 2D
UTI Banking & PSU Debt Fund Growth ₹19.0338
↓ -0.01
₹9670.73.75.66.510.37.43%3Y 1M 2D3Y 9M
ICICI Prudential Banking and PSU Debt Fund Growth ₹28.3816
↑ 0.00
₹8,1461.63.97.25.54.37.79%1Y 9M4Y 5M 19D
Kotak Banking and PSU Debt fund Growth ₹56.5456
↓ -0.02
₹6,34313.66.453.67.79%3Y 1M 17D9Y 7M 17D
Aditya Birla Sun Life Banking & PSU Debt Fund Growth ₹317.783
↓ -0.04
₹8,4001.23.66.253.77.5%2Y 6M 11D4Y 11M 23D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 Aug 23

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 7.6% since its launch.  Ranked 6 in Banking & PSU Debt category.  Return for 2022 was 3.3% , 2021 was 3.7% and 2020 was 10.6% .

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 (22 Aug 23) ₹19.9507 ↓ 0.00   (-0.01 %)
Net Assets (Cr) ₹6,373 on 31 Jul 23
Category Debt - Banking & PSU Debt
AMC HDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 0.81
Sharpe Ratio 0.1
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 300
Exit Load NIL
Yield to Maturity 7.46%
Effective Maturity 3 Years 5 Months 2 Days
Modified Duration 2 Years 3 Months 6 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 18₹10,000
31 Aug 19₹11,028
31 Aug 20₹12,173
31 Aug 21₹12,867
31 Aug 22₹13,222
31 Aug 23₹14,071

HDFC Banking and PSU Debt Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
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 22 Aug 23

DurationReturns
1 Month 0.3%
3 Month 1.3%
6 Month 3.7%
1 Year 6.3%
3 Year 4.9%
5 Year 7%
10 Year
15 Year
Since launch 7.6%
Historical performance (Yearly) on absolute basis
YearReturns
2022 3.3%
2021 3.7%
2020 10.6%
2019 10.2%
2018 5.9%
2017 6.3%
2016 10.8%
2015 9.8%
2014
2013
Fund Manager information for HDFC Banking and PSU Debt Fund
NameSinceTenure
Anil Bamboli26 Mar 149.44 Yr.
Dhruv Muchhal22 Jun 230.19 Yr.

Data below for HDFC Banking and PSU Debt Fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash19.2%
Debt80.8%
Debt Sector Allocation
SectorValue
Corporate51.22%
Government45.36%
Cash Equivalent3.41%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.879999999999999% Govt Stock 2028
Sovereign Bonds | -
4%₹264 Cr26,500,000
Small Industries Development Bank Of India
Debentures | -
4%₹225 Cr22,500
7.26% Govt Stock 2033
Sovereign Bonds | -
3%₹216 Cr21,500,000
7.1% Govt Stock 2029
Sovereign Bonds | -
3%₹194 Cr19,500,000
Power Finance Corporation Ltd.
Debentures | -
3%₹175 Cr1,750
Power Finance Corporation Ltd.
Debentures | -
2%₹150 Cr15,000
Rural Electrification Corporation Limited
Debentures | -
2%₹150 Cr1,500
National Bank For Agriculture And Rural Development
Debentures | -
2%₹149 Cr1,500
Housing And Urban Development Corporation Limited
Debentures | -
2%₹131 Cr1,250
HDFC Bank Limited
Debentures | -
2%₹126 Cr12,500

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 7% since its launch.  Ranked 3 in Banking & PSU Debt category.  Return for 2022 was 10.3% , 2021 was 2.8% and 2020 was 8.9% .

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

UTI Banking & PSU Debt Fund
Growth
Launch Date 3 Feb 14
NAV (22 Aug 23) ₹19.0338 ↓ -0.01   (-0.03 %)
Net Assets (Cr) ₹967 on 31 Jul 23
Category Debt - Banking & PSU Debt
AMC UTI Asset Management Company Ltd
Rating
Risk Moderate
Expense Ratio 0.5
Sharpe Ratio -0.13
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.43%
Effective Maturity 3 Years 9 Months
Modified Duration 3 Years 1 Month 2 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 18₹10,000
31 Aug 19₹10,115
31 Aug 20₹10,863
31 Aug 21₹11,309
31 Aug 22₹12,431
31 Aug 23₹13,143

UTI Banking & PSU Debt Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
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 22 Aug 23

DurationReturns
1 Month 0.1%
3 Month 0.7%
6 Month 3.7%
1 Year 5.6%
3 Year 6.5%
5 Year 5.6%
10 Year
15 Year
Since launch 7%
Historical performance (Yearly) on absolute basis
YearReturns
2022 10.3%
2021 2.8%
2020 8.9%
2019 -1%
2018 6.8%
2017 6.4%
2016 11.7%
2015 8.6%
2014
2013
Fund Manager information for UTI Banking & PSU Debt Fund
NameSinceTenure
Anurag Mittal1 Dec 211.75 Yr.

Data below for UTI Banking & PSU Debt Fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash6.91%
Debt93.09%
Debt Sector Allocation
SectorValue
Government53.24%
Corporate39.84%
Cash Equivalent6.91%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.38% Govt Stock 2027
Sovereign Bonds | -
21%₹201 Cr2,000,000,000
Rural Electrification Corporation Limited
Debentures | -
6%₹60 Cr6,000
Axis Bank Limited
Debentures | -
6%₹55 Cr550
ICICI Bank Limited
Debentures | -
5%₹52 Cr550
Hindustan Petroleum Corporation Limited
Debentures | -
5%₹50 Cr5,000
HDFC Bank Limited
Debentures | -
4%₹40 Cr400
Power Finance Corporation Ltd.
Debentures | -
4%₹40 Cr400
National Bank For Agriculture And Rural Development
Debentures | -
4%₹40 Cr4,000
National Bank For Agriculture And Rural Development
Debentures | -
3%₹26 Cr250
Indian Railway Finance Corporation Limited
Debentures | -
3%₹25 Cr250

3. 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 7.9% since its launch.  Ranked 13 in Banking & PSU Debt category.  Return for 2022 was 4.3% , 2021 was 4.2% and 2020 was 9.3% .

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 (22 Aug 23) ₹28.3816 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹8,146 on 31 Jul 23
Category Debt - Banking & PSU Debt
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.79
Sharpe Ratio 1.27
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.79%
Effective Maturity 4 Years 5 Months 19 Days
Modified Duration 1 Year 9 Months

Growth of 10,000 investment over the years.

DateValue
31 Aug 18₹10,000
31 Aug 19₹10,949
31 Aug 20₹11,935
31 Aug 21₹12,654
31 Aug 22₹13,113
31 Aug 23₹14,049

ICICI Prudential Banking and PSU Debt Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
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 22 Aug 23

DurationReturns
1 Month 0.5%
3 Month 1.6%
6 Month 3.9%
1 Year 7.2%
3 Year 5.5%
5 Year 7%
10 Year
15 Year
Since launch 7.9%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.3%
2021 4.2%
2020 9.3%
2019 10.1%
2018 5.7%
2017 5.6%
2016 12.6%
2015 8.6%
2014 10.5%
2013 8.9%
Fund Manager information for ICICI Prudential Banking and PSU Debt Fund
NameSinceTenure
Chandni Gupta15 Jan 158.63 Yr.
Rohit Lakhotia12 Jun 230.22 Yr.

Data below for ICICI Prudential Banking and PSU Debt Fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash20.19%
Debt79.81%
Debt Sector Allocation
SectorValue
Government48.23%
Corporate45.29%
Cash Equivalent6.47%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
8.51% Govt Stock 2033
Sovereign Bonds | -
11%₹932 Cr91,809,470
↓ -5,000,000
Small Industries Development Bank Of India
Debentures | -
7%₹606 Cr6,100
HDFC Bank Limited
Debentures | -
6%₹490 Cr49,000
7.06% Govt Stock 2028
Sovereign Bonds | -
6%₹473 Cr47,500,000
Power Finance Corporation Ltd.
Debentures | -
3%₹273 Cr27,500
↑ 5,000
7.38% Govt Stock 2027
Sovereign Bonds | -
3%₹252 Cr25,000,000
National Bank For Agriculture And Rural Development
Debentures | -
3%₹249 Cr25,000
Housing And Urban Development Corporation Ltd.
Debentures | -
3%₹226 Cr22,500
7.93% Govt Stock 2034
Sovereign Bonds | -
3%₹219 Cr21,936,820
↓ -10,000,000
Bharat Petroleum Corporation Limited
Debentures | -
2%₹200 Cr20,000

4. 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 2022 was 3.6% , 2021 was 3.9% and 2020 was 10.5% .

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 (22 Aug 23) ₹56.5456 ↓ -0.02   (-0.04 %)
Net Assets (Cr) ₹6,343 on 31 Jul 23
Category Debt - Banking & PSU Debt
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.6
Sharpe Ratio 0.22
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.79%
Effective Maturity 9 Years 7 Months 17 Days
Modified Duration 3 Years 1 Month 17 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 18₹10,000
31 Aug 19₹11,118
31 Aug 20₹12,253
31 Aug 21₹12,944
31 Aug 22₹13,343
31 Aug 23₹14,210

Kotak Banking and PSU Debt fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
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 22 Aug 23

DurationReturns
1 Month 0.2%
3 Month 1%
6 Month 3.6%
1 Year 6.4%
3 Year 5%
5 Year 7.2%
10 Year
15 Year
Since launch
Historical performance (Yearly) on absolute basis
YearReturns
2022 3.6%
2021 3.9%
2020 10.5%
2019 10.8%
2018 6.7%
2017 6.2%
2016 10%
2015 8.6%
2014 9.5%
2013 9.8%
Fund Manager information for Kotak Banking and PSU Debt fund
NameSinceTenure
Deepak Agrawal15 Apr 0815.39 Yr.
Abhishek Bisen1 Nov 220.83 Yr.
Palha Khanna3 Jul 230.16 Yr.

Data below for Kotak Banking and PSU Debt fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash8.49%
Debt91.51%
Debt Sector Allocation
SectorValue
Corporate52.12%
Government41.33%
Cash Equivalent6.54%
Credit Quality
RatingValue
AA8.59%
AAA91.41%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
8.51% Govt Stock 2033
Sovereign Bonds | -
11%₹662 Cr65,240,613
National Bank For Agriculture And Rural Development
Debentures | -
5%₹318 Cr3,200
HDFC Bank Limited
Debentures | -
4%₹234 Cr23,500
↓ -1,500
Small Industries Development Bank Of India
Debentures | -
3%₹217 Cr21,700
Small Industries Development Bank Of India
Debentures | -
3%₹189 Cr19,000
Rural Electrification Corporation Limited
Debentures | -
3%₹160 Cr1,600
Bank Of Baroda
Debentures | -
3%₹155 Cr1,550
Rural Electrification Corporation Limited
Debentures | -
2%₹151 Cr15,000
7.38% Govt Stock 2027
Sovereign Bonds | -
2%₹141 Cr14,000,000
Union Bank Of India
Debentures | -
2%₹140 Cr1,364

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 7.8% since its launch.  Ranked 9 in Banking & PSU Debt category.  Return for 2022 was 3.7% , 2021 was 3.6% and 2020 was 10.9% .

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 (22 Aug 23) ₹317.783 ↓ -0.04   (-0.01 %)
Net Assets (Cr) ₹8,400 on 31 Jul 23
Category Debt - Banking & PSU Debt
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderate
Expense Ratio 0.7
Sharpe Ratio -0.01
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.5%
Effective Maturity 4 Years 11 Months 23 Days
Modified Duration 2 Years 6 Months 11 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 18₹10,000
31 Aug 19₹11,085
31 Aug 20₹12,198
31 Aug 21₹12,911
31 Aug 22₹13,293
31 Aug 23₹14,140

Aditya Birla Sun Life Banking & PSU Debt Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
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 22 Aug 23

DurationReturns
1 Month 0.3%
3 Month 1.2%
6 Month 3.6%
1 Year 6.2%
3 Year 5%
5 Year 7.1%
10 Year
15 Year
Since launch 7.8%
Historical performance (Yearly) on absolute basis
YearReturns
2022 3.7%
2021 3.6%
2020 10.9%
2019 9.9%
2018 6.6%
2017 5.6%
2016 12.3%
2015 8.5%
2014 12.5%
2013 9.6%
Fund Manager information for Aditya Birla Sun Life Banking & PSU Debt Fund
NameSinceTenure
Kaustubh Gupta29 Sep 0913.93 Yr.
Harshil Suvarnkar22 Mar 212.45 Yr.

Data below for Aditya Birla Sun Life Banking & PSU Debt Fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash17.3%
Debt82.7%
Debt Sector Allocation
SectorValue
Corporate52.96%
Government41.36%
Cash Equivalent5.68%
Credit Quality
RatingValue
AA3.08%
AAA96.92%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Power Finance Corporation Ltd.
Debentures | -
4%₹326 Cr32,500
HDFC Bank Limited
Debentures | -
3%₹265 Cr265
National Housing Bank
Debentures | -
3%₹250 Cr25,000
Small Industries Development Bank Of India
Debentures | -
3%₹250 Cr25,000
7.17% Govt Stock 2030
Sovereign Bonds | -
3%₹226 Cr22,567,400
↑ 14,000,000
HDFC Bank Limited
Debentures | -
3%₹225 Cr22,500
7.38% Govt Stock 2027
Sovereign Bonds | -
2%₹202 Cr20,100,000
↑ 3,500,000
7.06% Govt Stock 2028
Sovereign Bonds | -
2%₹159 Cr16,000,000
↑ 3,000,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹150 Cr15,000
Power Finance Corporation Ltd.
Debentures | -
2%₹149 Cr1,500

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