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Top 5 Debt - Banking & PSU Debt Funds
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 2025 - 2026.
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Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2024 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity HDFC Banking and PSU Debt Fund Growth ₹23.1041
↑ 0.02 ₹6,114 2.6 5 9.1 7.5 7.9 6.72% 3Y 10M 17D 5Y 5M 16D UTI Banking & PSU Debt Fund Growth ₹22.0165
↑ 0.02 ₹800 2.8 4.9 9 7.6 7.6 6.44% 1Y 11M 12D 2Y 2M 23D Kotak Banking and PSU Debt fund Growth ₹65.6788
↑ 0.05 ₹6,213 2.7 4.9 9.2 7.7 8 6.68% 3Y 5M 26D 5Y 1M 13D Aditya Birla Sun Life Banking & PSU Debt Fund Growth ₹368.194
↑ 0.29 ₹8,991 2.6 4.9 9.1 7.5 7.9 6.7% 4Y 7D 5Y 5M 8D DSP BlackRock Banking and PSU Debt Fund Growth ₹24.1448
↑ 0.02 ₹4,104 2.3 4.6 8.9 7.5 8.6 6.83% 5Y 1M 17D 9Y 10M 2D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 1 Jul 25
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 Below is the key information for HDFC Banking and PSU Debt Fund Returns up to 1 year are on 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 Below is the key information for UTI Banking & PSU Debt Fund Returns up to 1 year are on 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 Below is the key information for Kotak Banking and PSU Debt fund Returns up to 1 year are on (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 Below is the key information for Aditya Birla Sun Life Banking & PSU Debt Fund Returns up to 1 year are on 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 Below is the key information for DSP BlackRock Banking and PSU Debt Fund Returns up to 1 year are on 1. HDFC Banking and PSU Debt Fund
CAGR/Annualized
return of 7.7% since its launch. Ranked 6 in Banking & PSU Debt
category. Return for 2024 was 7.9% , 2023 was 6.8% and 2022 was 3.3% . HDFC Banking and PSU Debt Fund
Growth Launch Date 26 Mar 14 NAV (01 Jul 25) ₹23.1041 ↑ 0.02 (0.08 %) Net Assets (Cr) ₹6,114 on 15 Jun 25 Category Debt - Banking & PSU Debt AMC HDFC Asset Management Company Limited Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 0.79 Sharpe Ratio 2.03 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load NIL Yield to Maturity 6.72% Effective Maturity 5 Years 5 Months 16 Days Modified Duration 3 Years 10 Months 17 Days Growth of 10,000 investment over the years.
Date Value 30 Jun 20 ₹10,000 30 Jun 21 ₹10,603 30 Jun 22 ₹10,878 30 Jun 23 ₹11,592 30 Jun 24 ₹12,398 30 Jun 25 ₹13,520 Returns for HDFC Banking and PSU Debt Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 1 Jul 25 Duration Returns 1 Month 0% 3 Month 2.6% 6 Month 5% 1 Year 9.1% 3 Year 7.5% 5 Year 6.2% 10 Year 15 Year Since launch 7.7% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.9% 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% Fund Manager information for HDFC Banking and PSU Debt Fund
Name Since Tenure Anil Bamboli 26 Mar 14 11.19 Yr. Dhruv Muchhal 22 Jun 23 1.95 Yr. Data below for HDFC Banking and PSU Debt Fund as on 15 Jun 25
Asset Allocation
Asset Class Value Cash 3.5% Debt 96.22% Other 0.28% Debt Sector Allocation
Sector Value Corporate 52.56% Government 43.67% Cash Equivalent 3.5% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Indian Railway Finance Corporation Limited
Debentures | -5% ₹282 Cr 27,500 Small Industries Development Bank Of India
Debentures | -4% ₹227 Cr 22,500 Indian Railway Finance Corporation Limited
Debentures | -3% ₹206 Cr 20,000 7.18% Govt Stock 2033
Sovereign Bonds | -3% ₹199 Cr 19,000,000 7.26% Govt Stock 2033
Sovereign Bonds | -3% ₹179 Cr 17,000,000 State Bank Of India
Debentures | -3% ₹176 Cr 175 Rec Limited
Debentures | -3% ₹153 Cr 1,500 Bajaj Housing Finance Limited
Debentures | -3% ₹153 Cr 15,000 Housing And Urban Development Corporation Limited
Debentures | -2% ₹153 Cr 15,000 Housing And Urban Development Corporation Limited
Debentures | -2% ₹132 Cr 1,250 2. UTI Banking & PSU Debt Fund
CAGR/Annualized
return of 7.2% since its launch. Ranked 3 in Banking & PSU Debt
category. Return for 2024 was 7.6% , 2023 was 6.7% and 2022 was 10.3% . UTI Banking & PSU Debt Fund
Growth Launch Date 3 Feb 14 NAV (01 Jul 25) ₹22.0165 ↑ 0.02 (0.09 %) Net Assets (Cr) ₹800 on 31 May 25 Category Debt - Banking & PSU Debt AMC UTI Asset Management Company Ltd Rating ☆☆☆☆☆ Risk Moderate Expense Ratio 0.55 Sharpe Ratio 2.2 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.44% Effective Maturity 2 Years 2 Months 23 Days Modified Duration 1 Year 11 Months 12 Days Growth of 10,000 investment over the years.
Date Value 30 Jun 20 ₹10,000 30 Jun 21 ₹10,396 30 Jun 22 ₹11,289 30 Jun 23 ₹12,086 30 Jun 24 ₹12,889 30 Jun 25 ₹14,046 Returns for UTI Banking & PSU Debt Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 1 Jul 25 Duration Returns 1 Month 0.4% 3 Month 2.8% 6 Month 4.9% 1 Year 9% 3 Year 7.6% 5 Year 7% 10 Year 15 Year Since launch 7.2% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.6% 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% Fund Manager information for UTI Banking & PSU Debt Fund
Name Since Tenure Anurag Mittal 1 Dec 21 3.5 Yr. Data below for UTI Banking & PSU Debt Fund as on 31 May 25
Asset Allocation
Asset Class Value Cash 3.94% Debt 95.73% Other 0.33% Debt Sector Allocation
Sector Value Corporate 52.65% Government 43.08% Cash Equivalent 3.94% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.38% Govt Stock 2027
Sovereign Bonds | -12% ₹93 Cr 900,000,000 Axis Bank Limited
Debentures | -7% ₹56 Cr 550 Export Import Bank Of India
Debentures | -6% ₹51 Cr 5,000 Small Industries Development Bank Of India
Debentures | -6% ₹51 Cr 5,000 Power Finance Corporation Limited
Debentures | -5% ₹41 Cr 400 Rural Electrification Corporation Limited
Debentures | -4% ₹36 Cr 3,500 HDFC Bank Limited
Debentures | -4% ₹35 Cr 350 Indian Railway Finance Corporation Limited
Debentures | -4% ₹31 Cr 300 National Bank For Agriculture And Rural Development
Debentures | -4% ₹31 Cr 3,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹26 Cr 250 3. Kotak Banking and PSU Debt fund
CAGR/Annualized
return of since its launch. Ranked 19 in Banking & PSU Debt
category. Return for 2024 was 8% , 2023 was 6.8% and 2022 was 3.6% . Kotak Banking and PSU Debt fund
Growth Launch Date 29 Dec 98 NAV (01 Jul 25) ₹65.6788 ↑ 0.05 (0.08 %) Net Assets (Cr) ₹6,213 on 31 May 25 Category Debt - Banking & PSU Debt AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.81 Sharpe Ratio 2.09 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.68% Effective Maturity 5 Years 1 Month 13 Days Modified Duration 3 Years 5 Months 26 Days Growth of 10,000 investment over the years.
Date Value 30 Jun 20 ₹10,000 30 Jun 21 ₹10,547 30 Jun 22 ₹10,839 30 Jun 23 ₹11,595 30 Jun 24 ₹12,416 30 Jun 25 ₹13,551 Returns for Kotak Banking and PSU Debt fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 1 Jul 25 Duration Returns 1 Month 0.1% 3 Month 2.7% 6 Month 4.9% 1 Year 9.2% 3 Year 7.7% 5 Year 6.3% 10 Year 15 Year Since launch Historical performance (Yearly) on absolute basis
Year Returns 2024 8% 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% Fund Manager information for Kotak Banking and PSU Debt fund
Name Since Tenure Deepak Agrawal 1 Aug 08 16.84 Yr. Dharmesh Thakar 1 Jun 25 0 Yr. Data below for Kotak Banking and PSU Debt fund as on 31 May 25
Asset Allocation
Asset Class Value Cash 2.63% Debt 97.1% Other 0.27% Debt Sector Allocation
Sector Value Corporate 56.85% Government 40.25% Cash Equivalent 2.63% Credit Quality
Rating Value AA 2.49% AAA 97.51% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -8% ₹518 Cr 49,343,730 Power Finance Corporation Limited
Debentures | -5% ₹339 Cr 33,000 7.1% Govt Stock 2034
Sovereign Bonds | -5% ₹281 Cr 26,836,520 National Housing Bank
Debentures | -4% ₹225 Cr 22,500
↑ 2,500 Indian Oil Corporation Limited
Debentures | -3% ₹195 Cr 19,000 Power Grid Corporation Of India Limited
Debentures | -3% ₹185 Cr 20,002 HDFC Bank Limited
Debentures | -3% ₹157 Cr 1,500 Rec Limited
Debentures | -3% ₹156 Cr 15,000 7.59% Govt Stock 2031
Sovereign Bonds | -2% ₹153 Cr 15,000,000
↑ 5,000,000 State Bank Of India
Debentures | -2% ₹143 Cr 1,450 4. Aditya Birla Sun Life Banking & PSU Debt Fund
CAGR/Annualized
return of 7.9% since its launch. Ranked 9 in Banking & PSU Debt
category. Return for 2024 was 7.9% , 2023 was 6.9% and 2022 was 3.7% . Aditya Birla Sun Life Banking & PSU Debt Fund
Growth Launch Date 9 May 08 NAV (01 Jul 25) ₹368.194 ↑ 0.29 (0.08 %) Net Assets (Cr) ₹8,991 on 31 May 25 Category Debt - Banking & PSU Debt AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.7 Sharpe Ratio 2.17 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 5 Years 5 Months 8 Days Modified Duration 4 Years 7 Days Growth of 10,000 investment over the years.
Date Value 30 Jun 20 ₹10,000 30 Jun 21 ₹10,542 30 Jun 22 ₹10,857 30 Jun 23 ₹11,573 30 Jun 24 ₹12,381 30 Jun 25 ₹13,498 Returns for Aditya Birla Sun Life Banking & PSU Debt Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 1 Jul 25 Duration Returns 1 Month 0% 3 Month 2.6% 6 Month 4.9% 1 Year 9.1% 3 Year 7.5% 5 Year 6.2% 10 Year 15 Year Since launch 7.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.9% 2023 6.9% 2022 3.7% 2021 3.6% 2020 10.9% 2019 9.9% 2018 6.6% 2017 5.6% 2016 12.3% 2015 8.5% Fund Manager information for Aditya Birla Sun Life Banking & PSU Debt Fund
Name Since Tenure Kaustubh Gupta 29 Sep 09 15.76 Yr. Harshil Suvarnkar 22 Mar 21 4.28 Yr. Data below for Aditya Birla Sun Life Banking & PSU Debt Fund as on 31 May 25
Asset Allocation
Asset Class Value Cash 2.92% Debt 96.78% Other 0.29% Debt Sector Allocation
Sector Value Corporate 61.08% Government 35.82% Cash Equivalent 2.82% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Power Grid Corporation Of India Limited
Debentures | -5% ₹411 Cr 41,000 Power Finance Corporation Limited
Debentures | -3% ₹304 Cr 30,000 Power Finance Corporation Limited
Debentures | -3% ₹257 Cr 25,000 Small Industries Development Bank Of India
Debentures | -3% ₹247 Cr 24,500 National Housing Bank
Debentures | -2% ₹225 Cr 22,500 State Bank Of India
Debentures | -2% ₹214 Cr 210 National Bank For Agriculture And Rural Development
Debentures | -2% ₹205 Cr 20,000 HDFC Bank Limited
Debentures | -2% ₹188 Cr 1,800 Rec Limited
Debentures | -2% ₹168 Cr 16,500 Bajaj Finance Limited
Debentures | -2% ₹168 Cr 16,500 5. DSP BlackRock Banking and PSU Debt Fund
CAGR/Annualized
return of 7.8% since its launch. Ranked 20 in Banking & PSU Debt
category. Return for 2024 was 8.6% , 2023 was 6.7% and 2022 was 3.2% . DSP BlackRock Banking and PSU Debt Fund
Growth Launch Date 14 Sep 13 NAV (01 Jul 25) ₹24.1448 ↑ 0.02 (0.09 %) Net Assets (Cr) ₹4,104 on 31 May 25 Category Debt - Banking & PSU Debt AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.58 Sharpe Ratio 1.69 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 6.83% Effective Maturity 9 Years 10 Months 2 Days Modified Duration 5 Years 1 Month 17 Days Growth of 10,000 investment over the years.
Date Value 30 Jun 20 ₹10,000 30 Jun 21 ₹10,460 30 Jun 22 ₹10,730 30 Jun 23 ₹11,418 30 Jun 24 ₹12,256 30 Jun 25 ₹13,339 Returns for DSP BlackRock Banking and PSU Debt Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 1 Jul 25 Duration Returns 1 Month -0.3% 3 Month 2.3% 6 Month 4.6% 1 Year 8.9% 3 Year 7.5% 5 Year 5.9% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2024 8.6% 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% Fund Manager information for DSP BlackRock Banking and PSU Debt Fund
Name Since Tenure Sandeep Yadav 1 Aug 24 0.91 Yr. Shantanu Godambe 1 Jun 23 2.08 Yr. Data below for DSP BlackRock Banking and PSU Debt Fund as on 31 May 25
Asset Allocation
Asset Class Value Cash 13.25% Debt 86.56% Other 0.19% Debt Sector Allocation
Sector Value Corporate 50.4% Government 47.17% Cash Equivalent 2.23% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.34% Govt Stock 2064
Sovereign Bonds | -4% ₹183 Cr 17,500,000 8.3% Govt Stock 2042
Sovereign Bonds | -4% ₹180 Cr 15,000,000 7.81% Govt Stock 2033
Sovereign Bonds | -4% ₹159 Cr 15,000,000 7.09% Govt Stock 2054
Sovereign Bonds | -3% ₹134 Cr 13,000,000
↑ 8,000,000 Small Industries Development Bank Of India
Debentures | -3% ₹134 Cr 12,500 Power Grid Corporation Of India Limited
Debentures | -3% ₹114 Cr 1,050 Indian Railway Finance Corporation Limited
Debentures | -3% ₹111 Cr 1,000 State Bank Of India
Debentures | -3% ₹109 Cr 100 6.9% Govt Stock 2065
Sovereign Bonds | -3% ₹109 Cr 11,000,000
↑ 1,000,000 Power Grid Corporation Of India Limited
Debentures | -3% ₹106 Cr 10,000
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