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Top 5 Best Banking and PSU Debt Funds 2024

Updated on April 23, 2024 , 20059 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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Top Performing Banking and PSU Debt Funds

Fund	NAV	Net Assets (Cr)	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	2023 (%)	Debt Yield (YTM)	Mod. Duration	Eff. Maturity
HDFC Banking and PSU Debt Fund Growth	₹20.8651 ↑ 0.00	₹6,267	1.8	3.6	6.7	5.2	6.8	7.57%	2Y 10M 27D	4Y 17D
UTI Banking & PSU Debt Fund Growth	₹19.9162 ↑ 0.00	₹947	1.7	3.7	6.3	7.2	6.7	7.51%	2Y 8M 8D	3Y 2M 19D
ICICI Prudential Banking and PSU Debt Fund Growth	₹29.7283 ↓ 0.00	₹8,837	1.9	3.6	7.2	5.8	7.3	7.79%	2Y 11M 26D	5Y 4M 2D
DSP BlackRock Banking and PSU Debt Fund Growth	₹21.7749 ↓ 0.00	₹2,376	2	4	6.7	5	6.7	7.56%	5Y 1M 28D	8Y 6M 22D
Kotak Banking and PSU Debt fund Growth	₹59.2138 ↓ -0.01	₹5,992	1.7	3.7	6.6	5.5	6.8	7.74%	4Y 1M 10D	8Y 9M 22D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 25 Apr 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 (25 Apr 24)	₹20.8651 ↑ 0.00 (0.00 %)
Net Assets (Cr)	₹6,267 on 31 Mar 24
Category	Debt - Banking & PSU Debt
AMC	HDFC Asset Management Company Limited
Rating	☆☆☆☆☆
Risk	Moderately Low
Expense Ratio	0.81
Sharpe Ratio	0.5
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	300
Exit Load	NIL
Yield to Maturity	7.57%
Effective Maturity	4 Years 17 Days
Modified Duration	2 Years 10 Months 27 Days

Growth of 10,000 investment over the years.

Date	Value
31 Mar 19	₹10,000
31 Mar 20	₹10,992
31 Mar 21	₹11,868
31 Mar 22	₹12,404
31 Mar 23	₹12,909
31 Mar 24	₹13,859

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 25 Apr 24

Duration	Returns
1 Month	0.4%
3 Month	1.8%
6 Month	3.6%
1 Year	6.7%
3 Year	5.2%
5 Year	6.8%
10 Year
15 Year
Since launch	7.6%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Anil Bamboli	26 Mar 14	10.02 Yr.
Dhruv Muchhal	22 Jun 23	0.78 Yr.

Data below for HDFC Banking and PSU Debt Fund as on 31 Mar 24

Asset Allocation

Asset Class	Value
Cash	12.69%
Debt	87.05%
Other	0.25%

Debt Sector Allocation

Sector	Value
Corporate	45.49%
Government	42.71%
Cash Equivalent	11.55%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
7.18% Govt Stock 2033 Sovereign Bonds \| -	5%	₹292 Cr	29,000,000
HDFC Bank Limited Debentures \| -	4%	₹229 Cr	23,000
Small Industries Development Bank Of India Debentures \| -	4%	₹224 Cr	22,500
7.26% Govt Stock 2033 Sovereign Bonds \| -	3%	₹217 Cr	21,500,000
7.1% Govt Stock 2029 Sovereign Bonds \| -	3%	₹195 Cr	19,500,000
Rural Electrification Corporation Limited Debentures \| -	2%	₹150 Cr	1,500
Power Finance Corporation Ltd. Debentures \| -	2%	₹150 Cr	15,000
National Bank For Agriculture And Rural Development Debentures \| -	2%	₹149 Cr	1,500
Small Industries Development Bank Of India Debentures \| -	2%	₹139 Cr	14,000
Housing And Urban Development Corporation Limited Debentures \| -	2%	₹130 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 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 (25 Apr 24)	₹19.9162 ↑ 0.00 (0.01 %)
Net Assets (Cr)	₹947 on 31 Mar 24
Category	Debt - Banking & PSU Debt
AMC	UTI Asset Management Company Ltd
Rating	☆☆☆☆☆
Risk	Moderate
Expense Ratio	0.5
Sharpe Ratio	0.06
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	500
Exit Load	NIL
Yield to Maturity	7.51%
Effective Maturity	3 Years 2 Months 19 Days
Modified Duration	2 Years 8 Months 8 Days

Growth of 10,000 investment over the years.

Date	Value
31 Mar 19	₹10,000
31 Mar 20	₹10,089
31 Mar 21	₹10,770
31 Mar 22	₹11,154
31 Mar 23	₹12,385
31 Mar 24	₹13,261

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 25 Apr 24

Duration	Returns
1 Month	0.5%
3 Month	1.7%
6 Month	3.7%
1 Year	6.3%
3 Year	7.2%
5 Year	5.8%
10 Year
15 Year
Since launch	7%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Anurag Mittal	1 Dec 21	2.33 Yr.

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

Asset Allocation

Asset Class	Value
Cash	3.21%
Debt	96.55%
Other	0.23%

Debt Sector Allocation

Sector	Value
Government	53.11%
Corporate	43.45%
Cash Equivalent	3.21%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
7.38% Govt Stock 2027 Sovereign Bonds \| -	21%	₹212 Cr	2,100,000,000
Rural Electrification Corporation Limited Debentures \| -	6%	₹61 Cr	6,000
Axis Bank Limited Debentures \| -	5%	₹55 Cr	550
ICICI Bank Limited Debentures \| -	5%	₹53 Cr	550
Power Finance Corporation Limited Debentures \| -	4%	₹40 Cr	400
HDFC Bank Limited Debentures \| -	4%	₹40 Cr	400
Indian Railway Finance Corporation Limited Debentures \| -	3%	₹30 Cr	300
National Bank For Agriculture And Rural Development Debentures \| -	3%	₹30 Cr	3,000
National Bank For Agriculture And Rural Development Debentures \| -	3%	₹26 Cr	250
Small Industries Development Bank Of India Debentures \| -	2%	₹25 Cr	2,500 ↑ 2,500

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 (25 Apr 24)	₹29.7283 ↓ 0.00 (0.00 %)
Net Assets (Cr)	₹8,837 on 31 Mar 24
Category	Debt - Banking & PSU Debt
AMC	ICICI Prudential Asset Management Company Limited
Rating	☆☆☆☆
Risk	Moderate
Expense Ratio	0.79
Sharpe Ratio	1.28
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	100
Exit Load	NIL
Yield to Maturity	7.79%
Effective Maturity	5 Years 4 Months 2 Days
Modified Duration	2 Years 11 Months 26 Days

Growth of 10,000 investment over the years.

Date	Value
31 Mar 19	₹10,000
31 Mar 20	₹10,917
31 Mar 21	₹11,775
31 Mar 22	₹12,318
31 Mar 23	₹12,984
31 Mar 24	₹13,978

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 25 Apr 24

Duration	Returns
1 Month	0.5%
3 Month	1.9%
6 Month	3.6%
1 Year	7.2%
3 Year	5.8%
5 Year	7%
10 Year
15 Year
Since launch	7.9%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Rohan Maru	22 Jan 24	0.19 Yr.
Rohit Lakhotia	12 Jun 23	0.81 Yr.

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

Asset Allocation

Asset Class	Value
Cash	6.51%
Debt	93.25%
Other	0.24%

Debt Sector Allocation

Sector	Value
Corporate	50.45%
Government	45.53%
Cash Equivalent	3.78%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
7.18% Govt Stock 2033 Sovereign Bonds \| -	14%	₹1,196 Cr	118,667,430 ↑ 2,500,000
8.25% Govt Stock 2033 Sovereign Bonds \| -	10%	₹893 Cr	87,809,470 ↓ -3,000,000
Small Industries Development Bank Of India Debentures \| -	6%	₹570 Cr	5,750
HDFC Bank Limited Debentures \| -	4%	₹379 Cr	37,800
National Bank For Agriculture And Rural Development Debentures \| -	3%	₹259 Cr	26,000
National Bank For Agriculture And Rural Development Debentures \| -	3%	₹254 Cr	25,500
Mahanagar Telephone Nigam Limited Debentures \| -	3%	₹229 Cr	22,500
Housing And Urban Development Corporation Ltd. Debentures \| -	3%	₹225 Cr	22,500
8.1% Govt Stock 2034 Sovereign Bonds \| -	2%	₹219 Cr	21,936,820
Bharat Petroleum Corporation Limited Debentures \| -	2%	₹200 Cr	20,000

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 7.6% 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 (25 Apr 24)	₹21.7749 ↓ 0.00 (0.00 %)
Net Assets (Cr)	₹2,376 on 31 Mar 24
Category	Debt - Banking & PSU Debt
AMC	DSP BlackRock Invmt Managers Pvt. Ltd.
Rating	☆☆☆☆
Risk	Moderate
Expense Ratio	0.58
Sharpe Ratio	0.74
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 6 Months 22 Days
Modified Duration	5 Years 1 Month 28 Days

Growth of 10,000 investment over the years.

Date	Value
31 Mar 19	₹10,000
31 Mar 20	₹10,990
31 Mar 21	₹11,871
31 Mar 22	₹12,328
31 Mar 23	₹12,821
31 Mar 24	₹13,814

DSP BlackRock 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 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 25 Apr 24

Duration	Returns
1 Month	0.3%
3 Month	2%
6 Month	4%
1 Year	6.7%
3 Year	5%
5 Year	6.7%
10 Year
15 Year
Since launch	7.6%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Karan Mundhra	1 Jul 23	0.75 Yr.
Shantanu Godambe	1 Jun 23	0.83 Yr.

Data below for DSP BlackRock Banking and PSU Debt Fund as on 31 Mar 24

Asset Allocation

Asset Class	Value
Cash	4.74%
Debt	95%
Other	0.27%

Debt Sector Allocation

Sector	Value
Government	62.03%
Corporate	36.08%
Cash Equivalent	1.63%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
7.25% Govt Stock 2063 Sovereign Bonds \| -	11%	₹253 Cr	24,500,000 ↑ 13,500,000
National Bank For Financing Infrastructure And Development Debentures \| -	9%	₹211 Cr	20,000
7.18% Govt Stock 2033 Sovereign Bonds \| -	7%	₹167 Cr	16,500,000 ↑ 12,500,000
HDFC Bank Limited Debentures \| -	7%	₹159 Cr	15,000
State Bank Of India Debentures \| -	6%	₹134 Cr	130
Small Industries Development Bank Of India Debentures \| -	5%	₹129 Cr	12,500
Indian Railway Finance Corporation Limited Debentures \| -	4%	₹102 Cr	950
National Bank for Agriculture and Rural Development Domestic Bonds \| -	4%	₹101 Cr	10,000 ↑ 5,000
GAil (India) Limited Debentures \| -	4%	₹101 Cr	1,000
National Bank For Agriculture And Rural Development Debentures \| -	4%	₹86 Cr	8,500 ↓ -1,000

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 (25 Apr 24)	₹59.2138 ↓ -0.01 (-0.01 %)
Net Assets (Cr)	₹5,992 on 31 Mar 24
Category	Debt - Banking & PSU Debt
AMC	Kotak Mahindra Asset Management Co Ltd
Rating	☆☆☆☆
Risk	Moderately Low
Expense Ratio	0.6
Sharpe Ratio	0.52
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	7.74%
Effective Maturity	8 Years 9 Months 22 Days
Modified Duration	4 Years 1 Month 10 Days

Growth of 10,000 investment over the years.

Date	Value
31 Mar 19	₹10,000
31 Mar 20	₹11,060
31 Mar 21	₹11,912
31 Mar 22	₹12,499
31 Mar 23	₹13,040
31 Mar 24	₹14,005

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 25 Apr 24

Duration	Returns
1 Month	0.4%
3 Month	1.7%
6 Month	3.7%
1 Year	6.6%
3 Year	5.5%
5 Year	7%
10 Year
15 Year
Since launch

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Deepak Agrawal	1 Aug 08	15.68 Yr.
Abhishek Bisen	1 Nov 22	1.42 Yr.
Palha Khanna	3 Jul 23	0.75 Yr.

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

Asset Allocation

Asset Class	Value
Cash	3.12%
Debt	96.62%
Other	0.26%

Debt Sector Allocation

Sector	Value
Corporate	49.43%
Government	47.6%
Cash Equivalent	2.71%

Credit Quality

Rating	Value
AA	5.85%
AAA	94.15%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
7.18% Govt Stock 2037 Sovereign Bonds \| -	14%	₹856 Cr	85,124,990 ↑ 15,000,000
National Bank For Agriculture And Rural Development Debentures \| -	6%	₹351 Cr	35,000
8.25% Govt Stock 2033 Sovereign Bonds \| -	5%	₹285 Cr	28,057,280
7.18% Govt Stock 2033 Sovereign Bonds \| -	5%	₹282 Cr	27,958,950 ↓ -7,500,000
HDFC Bank Limited Debentures \| -	4%	₹235 Cr	23,500
Power Grid Corporation Of India Limited Debentures \| -	3%	₹202 Cr	20,000
Rural Electrification Corporation Limited Debentures \| -	3%	₹159 Cr	1,600
Rural Electrification Corporation Limited Debentures \| -	3%	₹156 Cr	15,500
Rural Electrification Corporation Limited Debentures \| -	3%	₹152 Cr	15,000
LIC Housing Finance Limited Debentures \| -	3%	₹150 Cr	1,500

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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.