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Top 5 Best Banking and PSU Debt Funds 2024 - Fincash

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Top 5 Best Banking and PSU Debt Funds 2024

Updated on July 16, 2024 , 20190 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 2024 - 2025.

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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 (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
HDFC Banking and PSU Debt Fund Growth ₹21.281
↑ 0.01
₹6,3272.13.97.15.46.87.65%3Y 3M 12D4Y 5M 17D
UTI Banking & PSU Debt Fund Growth ₹20.2994
↑ 0.02
₹8962.13.76.87.56.77.61%2Y 8M 16D3Y 2M 26D
ICICI Prudential Banking and PSU Debt Fund Growth ₹30.3272
↑ 0.02
₹9,4042.147.46.17.37.77%3Y 6M 18D5Y 10M 10D
DSP BlackRock Banking and PSU Debt Fund Growth ₹22.2701
↑ 0.01
₹2,5092.34.57.45.46.77.56%4Y 9M8Y 4M 2D
Kotak Banking and PSU Debt fund Growth ₹60.4465
↑ 0.04
₹5,9682.147.15.76.87.68%4Y 2M 16D8Y 11D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Jul 24

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 2023 was 6.8% , 2022 was 3.3% and 2021 was 3.7% .

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 (18 Jul 24) ₹21.281 ↑ 0.01   (0.05 %)
Net Assets (Cr) ₹6,327 on 15 May 24
Category Debt - Banking & PSU Debt
AMC HDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 0.81
Sharpe Ratio -0.4
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 300
Exit Load NIL
Yield to Maturity 7.65%
Effective Maturity 4 Years 5 Months 17 Days
Modified Duration 3 Years 3 Months 12 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 19₹10,000
30 Jun 20₹11,146
30 Jun 21₹11,817
30 Jun 22₹12,125
30 Jun 23₹12,920
30 Jun 24₹13,818

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 ₹200,132.
Net Profit of ₹20,132
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 18 Jul 24

DurationReturns
1 Month 0.7%
3 Month 2.1%
6 Month 3.9%
1 Year 7.1%
3 Year 5.4%
5 Year 6.5%
10 Year
15 Year
Since launch 7.6%
Historical performance (Yearly) on absolute basis
YearReturns
2023 6.8%
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
Fund Manager information for HDFC Banking and PSU Debt Fund
NameSinceTenure
Anil Bamboli26 Mar 1410.19 Yr.
Dhruv Muchhal22 Jun 230.95 Yr.

Data below for HDFC Banking and PSU Debt Fund as on 15 May 24

Asset Allocation
Asset ClassValue
Cash3.23%
Debt96.52%
Other0.25%
Debt Sector Allocation
SectorValue
Corporate52.25%
Government44.65%
Cash Equivalent2.85%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2033
Sovereign Bonds | -
5%₹298 Cr29,500,000
↑ 500,000
Indian Railway Finance Corp Ltd.
Domestic Bonds | -
4%₹275 Cr27,500
Small Industries Development Bank Of India
Debentures | -
4%₹224 Cr22,500
7.26% Govt Stock 2033
Sovereign Bonds | -
3%₹218 Cr21,500,000
HDFC Bank Limited
Debentures | -
3%₹205 Cr20,500
Indian Railway Finance Corporation Limited
Debentures | -
3%₹201 Cr20,000
Bajaj Housing Finance Limited
Debentures | -
2%₹150 Cr15,000
Power Finance Corporation Ltd.
Debentures | -
2%₹150 Cr15,000
Rural Electrification Corporation Limited
Debentures | -
2%₹149 Cr1,500
National Bank For Agriculture And Rural Development
Debentures | -
2%₹149 Cr1,500

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 2023 was 6.7% , 2022 was 10.3% and 2021 was 2.8% .

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

UTI Banking & PSU Debt Fund
Growth
Launch Date 3 Feb 14
NAV (18 Jul 24) ₹20.2994 ↑ 0.02   (0.08 %)
Net Assets (Cr) ₹896 on 31 May 24
Category Debt - Banking & PSU Debt
AMC UTI Asset Management Company Ltd
Rating
Risk Moderate
Expense Ratio 0.5
Sharpe Ratio -1.06
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.61%
Effective Maturity 3 Years 2 Months 26 Days
Modified Duration 2 Years 8 Months 16 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 19₹10,000
30 Jun 20₹10,914
30 Jun 21₹11,346
30 Jun 22₹12,321
30 Jun 23₹13,192
30 Jun 24₹14,067

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 ₹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 18 Jul 24

DurationReturns
1 Month 0.8%
3 Month 2.1%
6 Month 3.7%
1 Year 6.8%
3 Year 7.5%
5 Year 6.8%
10 Year
15 Year
Since launch 7%
Historical performance (Yearly) on absolute basis
YearReturns
2023 6.7%
2022 10.3%
2021 2.8%
2020 8.9%
2019 -1%
2018 6.8%
2017 6.4%
2016 11.7%
2015 8.6%
2014
Fund Manager information for UTI Banking & PSU Debt Fund
NameSinceTenure
Anurag Mittal1 Dec 212.5 Yr.

Data below for UTI Banking & PSU Debt Fund as on 31 May 24

Asset Allocation
Asset ClassValue
Cash3.35%
Debt96.38%
Other0.27%
Debt Sector Allocation
SectorValue
Government48.47%
Corporate47.92%
Cash Equivalent3.35%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.38% Govt Stock 2027
Sovereign Bonds | -
14%₹121 Cr1,200,000,000
Axis Bank Limited
Debentures | -
6%₹55 Cr550
ICICI Bank Limited
Debentures | -
6%₹53 Cr550
Small Industries Development Bank Of India
Debentures | -
6%₹50 Cr5,000
Export-Import Bank of India
Domestic Bonds | -
6%₹50 Cr5,000
Power Finance Corporation Limited
Debentures | -
4%₹40 Cr400
HDFC Bank Limited
Debentures | -
4%₹40 Cr400
Rural Electrification Corporation Limited
Debentures | -
4%₹35 Cr3,500
Indian Railway Finance Corporation Limited
Debentures | -
3%₹30 Cr300
National Bank For Agriculture And Rural Development
Debentures | -
3%₹30 Cr3,000

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 2023 was 7.3% , 2022 was 4.3% and 2021 was 4.2% .

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 (18 Jul 24) ₹30.3272 ↑ 0.02   (0.06 %)
Net Assets (Cr) ₹9,404 on 31 May 24
Category Debt - Banking & PSU Debt
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.79
Sharpe Ratio 0.37
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.77%
Effective Maturity 5 Years 10 Months 10 Days
Modified Duration 3 Years 6 Months 18 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 19₹10,000
30 Jun 20₹11,029
30 Jun 21₹11,667
30 Jun 22₹12,036
30 Jun 23₹12,930
30 Jun 24₹13,883

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 18 Jul 24

DurationReturns
1 Month 0.7%
3 Month 2.1%
6 Month 4%
1 Year 7.4%
3 Year 6.1%
5 Year 6.6%
10 Year
15 Year
Since launch 7.9%
Historical performance (Yearly) on absolute basis
YearReturns
2023 7.3%
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%
Fund Manager information for ICICI Prudential Banking and PSU Debt Fund
NameSinceTenure
Rohan Maru22 Jan 240.36 Yr.
Rohit Lakhotia12 Jun 230.97 Yr.

Data below for ICICI Prudential Banking and PSU Debt Fund as on 31 May 24

Asset Allocation
Asset ClassValue
Cash10.56%
Debt89.21%
Other0.23%
Debt Sector Allocation
SectorValue
Corporate55.1%
Government36.74%
Cash Equivalent7.93%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
8.34% Govt Stock 2033
Sovereign Bonds | -
8%₹758 Cr74,290,950
Small Industries Development Bank Of India
Debentures | -
6%₹572 Cr5,750
7.18% Govt Stock 2033
Sovereign Bonds | -
6%₹536 Cr53,064,660
↓ -77,100,000
HDFC Bank Limited
Debentures | -
4%₹378 Cr37,800
National Bank For Agriculture And Rural Development
Debentures | -
3%₹279 Cr28,000
National Bank For Agriculture And Rural Development
Debentures | -
3%₹259 Cr26,000
Mahanagar Telephone Nigam Limited
Debentures | -
2%₹228 Cr22,500
Housing And Urban Development Corporation Ltd.
Debentures | -
2%₹225 Cr22,500
8% Govt Stock 2034
Sovereign Bonds | -
2%₹219 Cr21,936,820
Bharat Petroleum Corporation Limited
Debentures | -
2%₹200 Cr20,000

4. DSP BlackRock Banking and PSU Debt Fund

The investment objective of the Scheme is to seek to generate income and capital appreciation by primarily investing in a portfolio of high quality debt and money market securities that are issued by banks and public sector entities/undertakings.

DSP BlackRock Banking and PSU Debt Fund is a Debt - Banking & PSU Debt fund was launched on 14 Sep 13. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.7% since its launch.  Ranked 20 in Banking & PSU Debt category.  Return for 2023 was 6.7% , 2022 was 3.2% and 2021 was 3.1% .

Below is the key information for DSP BlackRock Banking and PSU Debt Fund

DSP BlackRock Banking and PSU Debt Fund
Growth
Launch Date 14 Sep 13
NAV (18 Jul 24) ₹22.2701 ↑ 0.01   (0.04 %)
Net Assets (Cr) ₹2,509 on 15 May 24
Category Debt - Banking & PSU Debt
AMC DSP BlackRock Invmt Managers Pvt. Ltd.
Rating
Risk Moderate
Expense Ratio 0.58
Sharpe Ratio -0.17
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 500
Exit Load 0-1 Months (0.25%),1 Months and above(NIL)
Yield to Maturity 7.56%
Effective Maturity 8 Years 4 Months 2 Days
Modified Duration 4 Years 9 Months

Growth of 10,000 investment over the years.

DateValue
30 Jun 19₹10,000
30 Jun 20₹11,265
30 Jun 21₹11,784
30 Jun 22₹12,088
30 Jun 23₹12,862
30 Jun 24₹13,807

DSP BlackRock 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 DSP BlackRock 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 18 Jul 24

DurationReturns
1 Month 0.8%
3 Month 2.3%
6 Month 4.5%
1 Year 7.4%
3 Year 5.4%
5 Year 6.5%
10 Year
15 Year
Since launch 7.7%
Historical performance (Yearly) on absolute basis
YearReturns
2023 6.7%
2022 3.2%
2021 3.1%
2020 10.9%
2019 9.9%
2018 6.3%
2017 5.4%
2016 10.6%
2015 8.6%
2014 10.4%
Fund Manager information for DSP BlackRock Banking and PSU Debt Fund
NameSinceTenure
Karan Mundhra1 Jul 230.92 Yr.
Shantanu Godambe1 Jun 231 Yr.

Data below for DSP BlackRock Banking and PSU Debt Fund as on 15 May 24

Asset Allocation
Asset ClassValue
Cash6.58%
Debt93.16%
Other0.26%
Debt Sector Allocation
SectorValue
Corporate48.47%
Government46.67%
Cash Equivalent4.6%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.3% Govt Stock 2053
Sovereign Bonds | -
11%₹265 Cr25,000,000
↑ 9,500,000
National Bank For Financing Infrastructure And Development
Debentures | -
6%₹161 Cr15,000
HDFC Bank Limited
Debentures | -
6%₹150 Cr15,000
Small Industries Development Bank Of India
Debentures | -
5%₹132 Cr12,500
State Bank Of India
Debentures | -
5%₹116 Cr110
Indian Railway Finance Corporation Limited
Debentures | -
4%₹103 Cr950
GAil (India) Limited
Debentures | -
4%₹103 Cr1,000
Uttar Pradesh (Government of) 7.48%
- | -
4%₹103 Cr10,000,000
7.1% Govt Stock 2034
Sovereign Bonds | -
4%₹102 Cr10,000,000
↑ 10,000,000
National Bank for Agriculture and Rural Development
Domestic Bonds | -
4%₹101 Cr10,000

5. 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 2023 was 6.8% , 2022 was 3.6% and 2021 was 3.9% .

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 (18 Jul 24) ₹60.4465 ↑ 0.04   (0.07 %)
Net Assets (Cr) ₹5,968 on 31 May 24
Category Debt - Banking & PSU Debt
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.6
Sharpe Ratio -0.4
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.68%
Effective Maturity 8 Years 11 Days
Modified Duration 4 Years 2 Months 16 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 19₹10,000
30 Jun 20₹11,177
30 Jun 21₹11,789
30 Jun 22₹12,115
30 Jun 23₹12,960
30 Jun 24₹13,877

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 ₹200,132.
Net Profit of ₹20,132
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 18 Jul 24

DurationReturns
1 Month 0.8%
3 Month 2.1%
6 Month 4%
1 Year 7.1%
3 Year 5.7%
5 Year 6.6%
10 Year
15 Year
Since launch
Historical performance (Yearly) on absolute basis
YearReturns
2023 6.8%
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%
Fund Manager information for Kotak Banking and PSU Debt fund
NameSinceTenure
Deepak Agrawal1 Aug 0815.84 Yr.
Abhishek Bisen1 Nov 221.58 Yr.
Palha Khanna3 Jul 230.91 Yr.

Data below for Kotak Banking and PSU Debt fund as on 31 May 24

Asset Allocation
Asset ClassValue
Cash2.88%
Debt96.86%
Other0.27%
Debt Sector Allocation
SectorValue
Corporate50.36%
Government46.49%
Cash Equivalent2.88%
Credit Quality
RatingValue
AA1.69%
AAA98.31%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2033
Sovereign Bonds | -
12%₹719 Cr71,248,740
↑ 23,000,000
National Bank For Agriculture And Rural Development
Debentures | -
7%₹426 Cr42,500
8.34% Govt Stock 2033
Sovereign Bonds | -
5%₹300 Cr29,432,280
National Housing Bank
Debentures | -
5%₹275 Cr27,500
↑ 7,500
HDFC Bank Limited
Debentures | -
4%₹234 Cr23,500
Power Grid Corporation Of India Limited
Debentures | -
3%₹201 Cr20,000
7.1% Govt Stock 2034
Sovereign Bonds | -
3%₹161 Cr15,986,530
↑ 15,986,530
Rural Electrification Corporation Limited
Debentures | -
3%₹156 Cr15,500
Rural Electrification Corporation Limited
Debentures | -
3%₹152 Cr15,000
Power Finance Corp Ltd. 0.076%
Debentures | -
3%₹150 Cr15,000

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