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Top 5 Best Banking and PSU Debt Funds 2023

Updated on March 23, 2023 , 19178 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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Top Performing Banking and PSU Debt Funds

Fund	NAV	Net Assets (Cr)	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	2022 (%)	Debt Yield (YTM)	Mod. Duration	Eff. Maturity
UTI Banking & PSU Debt Fund Growth	₹18.5085 ↑ 0.00	₹525	1.4	3.4	10.8	7.9	10.3	7.56%	3Y 2M 23D	3Y 11M 5D
HDFC Banking and PSU Debt Fund Growth	₹19.3538 ↑ 0.00	₹4,806	1.4	2.9	4	6.5	3.3	7.64%	1Y 11M 20D	3Y 1M 28D
ICICI Prudential Banking and PSU Debt Fund Growth	₹27.4505 ↓ 0.00	₹7,266	1.5	3.1	5.3	6.7	4.3	7.99%	2Y 18D	7Y 2M 12D
Kotak Banking and PSU Debt fund Growth	₹54.9609 ↑ 0.01	₹5,257	1.4	3.2	4.3	6.6	3.6	8.15%	2Y 7M 2D	6Y 10M 17D
Aditya Birla Sun Life Banking & PSU Debt Fund Growth	₹308.486 ↑ 0.04	₹7,994	1.5	3.1	4.2	6.7	3.7	7.76%	2Y 4M 10D	3Y 4M 13D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Mar 23

Top 5 Best Performing Banking and PSU Debt Funds

1. 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 (24 Mar 23)	₹18.5085 ↑ 0.00 (0.01 %)
Net Assets (Cr)	₹525 on 28 Feb 23
Category	Debt - Banking & PSU Debt
AMC	UTI Asset Management Company Ltd
Rating	☆☆☆☆☆
Risk	Moderate
Expense Ratio	0.31
Sharpe Ratio	0.8
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	500
Exit Load	NIL
Yield to Maturity	7.56%
Effective Maturity	3 Years 11 Months 5 Days
Modified Duration	3 Years 2 Months 23 Days

Growth of 10,000 investment over the years.

Date	Value
28 Feb 18	₹10,000
28 Feb 19	₹10,499
29 Feb 20	₹10,696
28 Feb 21	₹11,394
28 Feb 22	₹11,837
28 Feb 23	₹13,034

UTI Banking & PSU Debt Fund SIP 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 24 Mar 23

Duration	Returns
1 Month	0.8%
3 Month	1.4%
6 Month	3.4%
1 Year	10.8%
3 Year	7.9%
5 Year	5.5%
10 Year
15 Year
Since launch	7%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Anurag Mittal	1 Dec 21	1.17 Yr.

Data below for UTI Banking & PSU Debt Fund as on 28 Feb 23

Asset Allocation

Asset Class	Value
Cash	5.77%
Debt	94.23%

Debt Sector Allocation

Sector	Value
Government	47.38%
Corporate	46.85%
Cash Equivalent	5.77%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
7.38 6/20/2027 12:00:00 Am Sovereign Bonds \| -	21%	₹110 Cr	1,100,000,000 ↓ -150,000,000
Power Finance Corporation Ltd. Debentures \| -	7%	₹40 Cr	400 ↑ 50
National Housing Bank Debentures \| -	7%	₹40 Cr	400
Axis Bank Limited Debentures \| -	6%	₹30 Cr	300
National Bank For Agriculture And Rural Development Debentures \| -	5%	₹26 Cr	250
Export Import Bank Of India Debentures \| -	5%	₹25 Cr	250
Indian Railway Finance Corporation Limited Debentures \| -	5%	₹25 Cr	250
Small Industries Development Bank Of India Debentures \| -	5%	₹25 Cr	250
Rec Limited Debentures \| -	5%	₹25 Cr	250
ICICI Bank Limited Debentures \| -	4%	₹24 Cr	250

2. 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 (24 Mar 23)	₹19.3538 ↑ 0.00 (0.02 %)
Net Assets (Cr)	₹4,806 on 28 Feb 23
Category	Debt - Banking & PSU Debt
AMC	HDFC Asset Management Company Limited
Rating	☆☆☆☆☆
Risk	Moderately Low
Expense Ratio	0.81
Sharpe Ratio	-1.91
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	300
Exit Load	NIL
Yield to Maturity	7.64%
Effective Maturity	3 Years 1 Month 28 Days
Modified Duration	1 Year 11 Months 20 Days

Growth of 10,000 investment over the years.

Date	Value
28 Feb 18	₹10,000
28 Feb 19	₹10,687
29 Feb 20	₹11,898
28 Feb 21	₹12,805
28 Feb 22	₹13,425
28 Feb 23	₹13,903

HDFC Banking and 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 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 Mar 23

Duration	Returns
1 Month	0.6%
3 Month	1.4%
6 Month	2.9%
1 Year	4%
3 Year	6.5%
5 Year	6.7%
10 Year
15 Year
Since launch	7.6%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Anil Bamboli	26 Mar 14	8.86 Yr.
Priya Ranjan	1 May 22	0.76 Yr.

Data below for HDFC Banking and PSU Debt Fund as on 28 Feb 23

Asset Allocation

Asset Class	Value
Cash	21.47%
Debt	78.53%

Debt Sector Allocation

Sector	Value
Government	47.36%
Corporate	41.9%
Cash Equivalent	10.74%

Credit Quality

Rating	Value
AA	2.8%
AAA	97.2%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
7.01 10/4/2028 12:00:00 Am Sovereign Bonds \| -	6%	₹276 Cr	28,000,000
7.1 4/18/2029 12:00:00 Am Sovereign Bonds \| -	4%	₹193 Cr	19,500,000
Small Industries Development Bank Of India Debentures \| -	4%	₹174 Cr	17,500 ↑ 2,500
Power Finance Corporation Ltd. Debentures \| -	4%	₹174 Cr	1,750
Rural Electrification Corporation Limited Debentures \| -	3%	₹149 Cr	1,500
Housing And Urban Development Corporation Limited Debentures \| -	3%	₹131 Cr	1,250
State Bank Of India Debentures \| -	3%	₹125 Cr	1,250
State Bank Of India Debentures \| -	3%	₹124 Cr	1,300
6.79 5/15/2027 12:00:00 Am Sovereign Bonds \| -	2%	₹103 Cr	10,500,000 ↓ -4,000,000
Mahanagar Telephone Nigam Limited. Debentures \| -	2%	₹102 Cr	1,000

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 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 (24 Mar 23)	₹27.4505 ↓ 0.00 (0.00 %)
Net Assets (Cr)	₹7,266 on 28 Feb 23
Category	Debt - Banking & PSU Debt
AMC	ICICI Prudential Asset Management Company Limited
Rating	☆☆☆☆
Risk	Moderate
Expense Ratio	0.8
Sharpe Ratio	-0.64
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	100
Exit Load	NIL
Yield to Maturity	7.99%
Effective Maturity	7 Years 2 Months 12 Days
Modified Duration	2 Years 18 Days

Growth of 10,000 investment over the years.

Date	Value
28 Feb 18	₹10,000
28 Feb 19	₹10,612
29 Feb 20	₹11,782
28 Feb 21	₹12,634
28 Feb 22	₹13,221
28 Feb 23	₹13,863

ICICI Prudential Banking and 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 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 Mar 23

Duration	Returns
1 Month	0.5%
3 Month	1.5%
6 Month	3.1%
1 Year	5.3%
3 Year	6.7%
5 Year	6.7%
10 Year
15 Year
Since launch	7.9%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Rahul Goswami	27 Sep 12	10.35 Yr.
Chandni Gupta	15 Jan 15	8.05 Yr.

Data below for ICICI Prudential Banking and PSU Debt Fund as on 28 Feb 23

Asset Allocation

Asset Class	Value
Cash	31.91%
Debt	68.09%

Debt Sector Allocation

Sector	Value
Government	55.99%
Corporate	38%
Cash Equivalent	6.01%

Credit Quality

Rating	Value
AA	8.26%
AAA	91.74%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
7.42 9/22/2033 12:00:00 Am Sovereign Bonds \| -	20%	₹1,477 Cr	148,559,470
Small Industries Development Bank Of India Debentures \| -	8%	₹604 Cr	6,100
7.69 10/30/2034 12:00:00 Am Sovereign Bonds \| -	8%	₹565 Cr	57,936,820
ICICI Bank Limited Debentures \| -	5%	₹372 Cr	3,710 ↓ -90
National Bank For Agriculture And Rural Development Debentures \| -	3%	₹249 Cr	25,000
Bharat Sanchar Nigam Limited Debentures \| -	3%	₹240 Cr	2,540
National Bank For Agriculture And Rural Development Debentures \| -	3%	₹224 Cr	22,500 ↑ 7,500
State Bank Of India Debentures \| -	2%	₹133 Cr	1,319
Mahanagar Telephone Nigam Limited. Debentures \| -	2%	₹125 Cr	1,301
State Bank Of India Debentures \| -	1%	₹105 Cr	1,050

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 (24 Mar 23)	₹54.9609 ↑ 0.01 (0.02 %)
Net Assets (Cr)	₹5,257 on 28 Feb 23
Category	Debt - Banking & PSU Debt
AMC	Kotak Mahindra Asset Management Co Ltd
Rating	☆☆☆☆
Risk	Moderately Low
Expense Ratio	0.59
Sharpe Ratio	-1.39
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	8.15%
Effective Maturity	6 Years 10 Months 17 Days
Modified Duration	2 Years 7 Months 2 Days

Growth of 10,000 investment over the years.

Date	Value
28 Feb 18	₹10,000
28 Feb 19	₹10,760
29 Feb 20	₹12,032
28 Feb 21	₹12,926
28 Feb 22	₹13,592
28 Feb 23	₹14,100

Kotak Banking and PSU Debt fund SIP 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 24 Mar 23

Duration	Returns
1 Month	0.7%
3 Month	1.4%
6 Month	3.2%
1 Year	4.3%
3 Year	6.6%
5 Year	7.1%
10 Year
15 Year
Since launch

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Deepak Agrawal	15 Apr 08	14.81 Yr.
Abhishek Bisen	1 Nov 22	0.25 Yr.
Vihag Mishra	1 Mar 22	0.92 Yr.

Data below for Kotak Banking and PSU Debt fund as on 28 Feb 23

Asset Allocation

Asset Class	Value
Cash	12.33%
Debt	87.67%

Debt Sector Allocation

Sector	Value
Government	53.04%
Corporate	44.96%
Cash Equivalent	2%

Credit Quality

Rating	Value
AA	10.96%
AAA	89.04%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
7.42 9/22/2033 12:00:00 Am Sovereign Bonds \| -	14%	₹715 Cr	71,940,613
Housing Development Finance Corporation Limited Debentures \| -	5%	₹252 Cr	2,550
Small Industries Development Bank Of India Debentures \| -	4%	₹199 Cr	20,000
National Bank For Agriculture And Rural Development Debentures \| -	4%	₹193 Cr	1,950
7.69 12/7/2031 12:00:00 Am Sovereign Bonds \| -	4%	₹189 Cr	19,000,000
Union Bank of India Domestic Bonds \| -	3%	₹163 Cr	17,500 ↑ 17,500
Rural Electrification Corporation Limited Debentures \| -	3%	₹159 Cr	1,600
Bank Of Baroda Debentures \| -	3%	₹155 Cr	1,550
National Bank For Agriculture And Rural Development Debentures \| -	3%	₹149 Cr	15,000 ↑ 15,000
Power Finance Corporation Ltd. Debentures \| -	3%	₹148 Cr	1,500

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 7.9% 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 (24 Mar 23)	₹308.486 ↑ 0.04 (0.01 %)
Net Assets (Cr)	₹7,994 on 28 Feb 23
Category	Debt - Banking & PSU Debt
AMC	Birla Sun Life Asset Management Co Ltd
Rating	☆☆☆☆
Risk	Moderate
Expense Ratio	0.68
Sharpe Ratio	-1.58
Information Ratio	0
Alpha Ratio	0
Min Investment	1,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	7.76%
Effective Maturity	3 Years 4 Months 13 Days
Modified Duration	2 Years 4 Months 10 Days

Growth of 10,000 investment over the years.

Date	Value
28 Feb 18	₹10,000
28 Feb 19	₹10,730
29 Feb 20	₹11,926
28 Feb 21	₹12,846
28 Feb 22	₹13,506
28 Feb 23	₹14,026

Aditya Birla Sun Life 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 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 Mar 23

Duration	Returns
1 Month	0.6%
3 Month	1.5%
6 Month	3.1%
1 Year	4.2%
3 Year	6.7%
5 Year	6.9%
10 Year
15 Year
Since launch	7.9%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Kaustubh Gupta	29 Sep 09	13.35 Yr.
Harshil Suvarnkar	22 Mar 21	1.87 Yr.

Data below for Aditya Birla Sun Life Banking & PSU Debt Fund as on 28 Feb 23

Asset Allocation

Asset Class	Value
Cash	21.08%
Debt	78.92%

Debt Sector Allocation

Sector	Value
Corporate	47.93%
Government	46.29%
Cash Equivalent	5.79%

Credit Quality

Rating	Value
AA	3.56%
AAA	96.44%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Limited Debentures \| -	4%	₹288 Cr	290 ↓ -25
Housing And Urban Development Corporation Limited Debentures \| -	3%	₹273 Cr	2,750
Small Industries Development Bank Of India Debentures \| -	3%	₹254 Cr	25,500 ↑ 3,000
National Bank For Agriculture And Rural Development Debentures \| -	3%	₹239 Cr	24,000 ↑ 24,000
State Bank Of India Debentures \| -	2%	₹177 Cr	1,850
State Bank Of India Debentures \| -	2%	₹175 Cr	1,850
National Bank For Agriculture And Rural Development Debentures \| -	2%	₹154 Cr	1,550 ↑ 300
National Bank For Agriculture And Rural Development Debentures \| -	2%	₹149 Cr	15,000 ↑ 7,500
Housing And Urban Development Corporation Limited Debentures \| -	2%	₹144 Cr	1,450
Hdb Financial Services Limited Debentures \| -	2%	₹135 Cr	1,350

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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.