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Top 5 Best Banking and PSU Debt Funds 2019

Updated on November 18, 2019 , 395 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 2019 - 2020.

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Top Performing Banking and PSU Debt Funds

Fund	NAV	Net Assets (Cr)	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	2018 (%)	Debt Yield (YTM)	Mod. Duration	Eff. Maturity
HDFC Banking and PSU Debt Fund Growth	₹16.0495 ↑ 0.01	₹3,887	2.7	6.1	11.3	7.2	5.9	7.22%	2Y 4D	2Y 6M 25D
UTI Banking & PSU Debt Fund Growth	₹14.733 ↑ 0.01	₹149	0.6	4.5	0	4.1	6.8	6.64%	2Y 5M 19D	3Y 2M 20D
Kotak Banking and PSU Debt fund Growth	₹45.376 ↑ 0.06	₹3,068	2.6	6.6	11.8	7.7	6.7	7.11%	2Y 11M 19D	4Y 11D
DSP BlackRock Banking and PSU Debt Fund Growth	₹16.8533 ↑ 0.01	₹2,014	2.8	6.4	11.4	7.2	6.3	6.68%	2Y 7M 20D	3Y 3M 22D
Aditya Birla Sun Life Banking & PSU Debt Fund Growth	₹254.618 ↑ 0.14	₹8,720	2.3	6.3	11.1	7.2	6.6	6.52%	2Y 14D	2Y 9M
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 20 Nov 19

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 8.7% since its launch. Ranked 6 in Banking & PSU Debt category. Return for 2018 was 5.9% , 2017 was 6.3% and 2016 was 10.8% .

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 (20 Nov 19)	₹16.0495 ↑ 0.01 (0.07 %)
Net Assets (Cr)	₹3,887 on 31 Oct 19
Category	Debt - Banking & PSU Debt
AMC	HDFC Asset Management Company Limited
Rating	☆☆☆☆☆
Risk	Moderately Low
Expense Ratio	0.26
Sharpe Ratio	4.08
Information Ratio	-0.21
Alpha Ratio	-2.16
Min Investment	5,000
Min SIP Investment	500
Exit Load	NIL
Yield to Maturity	7.22%
Effective Maturity	2 Years 6 Months 25 Days
Modified Duration	2 Years 4 Days

Growth of 10,000 investment over the years.

Date	Value
31 Oct 14	₹10,000
31 Oct 15	₹11,020
31 Oct 16	₹12,187
31 Oct 17	₹13,150
31 Oct 18	₹13,549
31 Oct 19	₹15,123

HDFC Banking and PSU Debt Fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148 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 20 Nov 19

Duration	Returns
1 Month	1.1%
3 Month	2.7%
6 Month	6.1%
1 Year	11.3%
3 Year	7.2%
5 Year	8.6%
10 Year
15 Year
Since launch	8.7%

Historical performance (Yearly) on absolute basis

Year	Returns
2018	5.9%
2017	6.3%
2016	10.8%
2015	9.8%
2014
2013
2012
2011
2010
2009

Fund Manager information for HDFC Banking and PSU Debt Fund

Name	Since	Tenure
Anil Bamboli	26 Mar 14	5.6 Yr.
Chirag Dagli	31 Jul 19	0.25 Yr.

Data below for HDFC Banking and PSU Debt Fund as on 31 Oct 19

Asset Allocation

Asset Class	Value
Cash	15.82%
Debt	84.18%

Debt Sector Allocation

Sector	Value
Government	49.51%
Corporate	34.67%
Cash Equivalent	15.82%

Credit Quality

Rating	Value
A	10.88%
AA	20.28%
AAA	68.72%
Below B	0.13%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
National Highways Authority Of India Debentures \| -	6%	₹206 Cr	2,050
Food Corporation Of India Debentures \| -	5%	₹191 Cr	1,800
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT Debentures \| -	5%	₹181 Cr	1,750
IDFC First Bank Limited Certificate of Deposit \| -	4%	₹150 Cr	15,500
Syndicate Bank Debentures \| -	4%	₹135 Cr	1,350
Net Current Assets Net Current Assets \| -	4%	₹129 Cr
Housing Development Finance Corporation Limited Debentures \| -	4%	₹128 Cr	1,250
Power Grid Corporation Of India Limited Debentures \| -	4%	₹127 Cr	1,250
Tata International Limited Debentures \| -	4%	₹125 Cr	1,250
Union Bank Of India Debentures \| -	3%	₹119 Cr	1,220

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 6.9% since its launch. Ranked 3 in Banking & PSU Debt category. Return for 2018 was 6.8% , 2017 was 6.4% and 2016 was 11.7% .

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

UTI Banking & PSU Debt Fund Growth
Launch Date	3 Feb 14
NAV (20 Nov 19)	₹14.733 ↑ 0.01 (0.04 %)
Net Assets (Cr)	₹149 on 31 Oct 19
Category	Debt - Banking & PSU Debt
AMC	UTI Asset Management Company Ltd
Rating	☆☆☆☆☆
Risk	Moderate
Expense Ratio	0.35
Sharpe Ratio	-0.38
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	500
Exit Load	NIL
Yield to Maturity	6.64%
Effective Maturity	3 Years 2 Months 20 Days
Modified Duration	2 Years 5 Months 19 Days

Growth of 10,000 investment over the years.

Date	Value
31 Oct 14	₹10,000
31 Oct 15	₹10,863
31 Oct 16	₹12,019
31 Oct 17	₹13,042
31 Oct 18	₹13,695
31 Oct 19	₹13,699

UTI 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 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 20 Nov 19

Duration	Returns
1 Month	1%
3 Month	0.6%
6 Month	4.5%
1 Year	0%
3 Year	4.1%
5 Year	6.5%
10 Year
15 Year
Since launch	6.9%

Historical performance (Yearly) on absolute basis

Year	Returns
2018	6.8%
2017	6.4%
2016	11.7%
2015	8.6%
2014
2013
2012
2011
2010
2009

Fund Manager information for UTI Banking & PSU Debt Fund

Name	Since	Tenure
Sudhir Agarwal	3 Feb 14	5.74 Yr.

Data below for UTI Banking & PSU Debt Fund as on 31 Oct 19

Asset Allocation

Asset Class	Value
Cash	26.52%
Debt	73.48%

Debt Sector Allocation

Sector	Value
Government	48.94%
Corporate	33.59%
Cash Equivalent	17.47%

Credit Quality

Rating	Value
AAA	85.34%
Below B	14.66%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Net Current Assets Net Current Assets \| -	17%	₹27 Cr	00
NTPC Limited Debentures \| -	10%	₹16 Cr	150
POWER FINANCE CORPORATION LIMITED Debentures \| -	9%	₹15 Cr	150
HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED (HUDCO) Debentures \| -	9%	₹15 Cr	150
Small Industries Development Bank Of India Debentures \| -	9%	₹15 Cr	150 ↑ 150
NATIONAL HIGHWAYS AUTHORITY OF INDIA Debentures \| -	9%	₹15 Cr	150 ↑ 150
REC LIMITED Commercial Paper \| -	9%	₹15 Cr	150,000,000
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT Debentures \| -	6%	₹10 Cr	100 ↑ 100
Jorabat Shillong Expressway Limited Debentures \| -	6%	₹10 Cr	2,000
Jorabat Shillong Expressway Limited Debentures \| -	6%	₹10 Cr	3,823

3. 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 2018 was 6.7% , 2017 was 6.2% and 2016 was 10% .

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 (20 Nov 19)	₹45.376 ↑ 0.06 (0.12 %)
Net Assets (Cr)	₹3,068 on 31 Oct 19
Category	Debt - Banking & PSU Debt
AMC	Kotak Mahindra Asset Management Co Ltd
Rating	☆☆☆☆
Risk	Moderately Low
Expense Ratio	0.25
Sharpe Ratio	4.25
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	7.11%
Effective Maturity	4 Years 11 Days
Modified Duration	2 Years 11 Months 19 Days

Growth of 10,000 investment over the years.

Date	Value
31 Oct 14	₹10,000
31 Oct 15	₹10,893
31 Oct 16	₹11,934
31 Oct 17	₹12,852
31 Oct 18	₹13,396
31 Oct 19	₹15,038

Kotak Banking and PSU Debt fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148 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 20 Nov 19

Duration	Returns
1 Month	1.1%
3 Month	2.6%
6 Month	6.6%
1 Year	11.8%
3 Year	7.7%
5 Year	8.5%
10 Year
15 Year
Since launch

Historical performance (Yearly) on absolute basis

Year	Returns
2018	6.7%
2017	6.2%
2016	10%
2015	8.6%
2014	9.5%
2013	9.8%
2012	7.6%
2011	7.9%
2010	3.7%
2009	2.8%

Fund Manager information for Kotak Banking and PSU Debt fund

Name	Since	Tenure
Deepak Agrawal	15 Apr 08	11.55 Yr.

Data below for Kotak Banking and PSU Debt fund as on 31 Oct 19

Asset Allocation

Asset Class	Value
Cash	13.25%
Debt	83.24%

Debt Sector Allocation

Sector	Value

Credit Quality

Rating	Value
AA	22.66%
AAA	77.34%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
GOVT STOCK Sovereign Bonds \| -	7%	₹224 Cr	21,500,000 ↑ 14,500,000
Food Corporation Of India Debentures \| -	5%	₹161 Cr	1,500
STATE BANK OF INDIA Debentures \| -	5%	₹151 Cr	1,450
REC LIMITED Debentures \| -	4%	₹128 Cr	1,250
Axis Bank Limited Debentures \| -	4%	₹120 Cr	1,200
Triparty Repo CBLO/Reverse Repo \| -	3%	₹103 Cr
ICICI Bank Limited Debentures \| -	3%	₹101 Cr	1,000
NTPC LIMITED Debentures \| -	3%	₹99 Cr	1,000 ↑ 1,000
NATIONAL HIGHWAYS AUTHORITY OF INDIA Debentures \| -	3%	₹99 Cr	1,000
Net Current Assets/(Liabilities) Net Current Assets \| -	3%	₹90 Cr

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 8.8% since its launch. Ranked 20 in Banking & PSU Debt category. Return for 2018 was 6.3% , 2017 was 5.4% and 2016 was 10.6% .

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 (20 Nov 19)	₹16.8533 ↑ 0.01 (0.04 %)
Net Assets (Cr)	₹2,014 on 31 Oct 19
Category	Debt - Banking & PSU Debt
AMC	DSP BlackRock Invmt Managers Pvt. Ltd.
Rating	☆☆☆☆
Risk	Moderate
Expense Ratio	0.5
Sharpe Ratio	3.5
Information Ratio	-0.14
Alpha Ratio	-3.51
Min Investment	1,000
Min SIP Investment	500
Exit Load	0-1 Months (0.25%),1 Months and above(NIL)
Yield to Maturity	6.68%
Effective Maturity	3 Years 3 Months 22 Days
Modified Duration	2 Years 7 Months 20 Days

Growth of 10,000 investment over the years.

Date	Value
31 Oct 14	₹10,000
31 Oct 15	₹10,951
31 Oct 16	₹12,029
31 Oct 17	₹12,898
31 Oct 18	₹13,412
31 Oct 19	₹14,962

DSP BlackRock Banking and PSU Debt Fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148 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 20 Nov 19

Duration	Returns
1 Month	1.3%
3 Month	2.8%
6 Month	6.4%
1 Year	11.4%
3 Year	7.2%
5 Year	8.3%
10 Year
15 Year
Since launch	8.8%

Historical performance (Yearly) on absolute basis

Year	Returns
2018	6.3%
2017	5.4%
2016	10.6%
2015	8.6%
2014	10.4%
2013
2012
2011
2010
2009

Fund Manager information for DSP BlackRock Banking and PSU Debt Fund

Name	Since	Tenure
Vikram Chopra	17 Jul 16	2.7 Yr.
Saurabh Bhatia	15 Feb 18	1.12 Yr.

Data below for DSP BlackRock Banking and PSU Debt Fund as on 31 Oct 19

Asset Allocation

Asset Class	Value
Cash	0.28%
Debt	99.72%

Debt Sector Allocation

Sector	Value
Government	69.13%
Corporate	30.59%
Cash Equivalent	0.28%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
NTPC Limited Debentures \| -	6%	₹129 Cr	1,200 ↑ 250
HINDUSTAN PETROLEUM CORPORATION LIMITED Debentures \| -	6%	₹128 Cr	1,250
Indian Railway Finance Corporation Limited Debentures \| -	4%	₹86 Cr	850
BHARAT PETROLEUM CORPORATION LIMITED Debentures \| -	4%	₹85 Cr	780
National Highways Authority Of India Debentures \| -	4%	₹82 Cr	750 ↑ 250
Reliance Industries Limited Debentures \| -	4%	₹81 Cr	750
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT Debentures \| -	4%	₹76 Cr	750
Housing Development Finance Corporation Limited Debentures \| -	4%	₹76 Cr	750 ↑ 750
POWER GRID CORPORATION OF INDIA LIMITED Debentures \| -	4%	₹73 Cr	700
Power Finance Corporation Ltd. Debentures \| -	4%	₹72 Cr	665

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 8.4% since its launch. Ranked 9 in Banking & PSU Debt category. Return for 2018 was 6.6% , 2017 was 5.6% and 2016 was 12.3% .

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 (20 Nov 19)	₹254.618 ↑ 0.14 (0.06 %)
Net Assets (Cr)	₹8,720 on 31 Oct 19
Category	Debt - Banking & PSU Debt
AMC	Birla Sun Life Asset Management Co Ltd
Rating	☆☆☆☆
Risk	Moderate
Expense Ratio	0.64
Sharpe Ratio	3.69
Information Ratio	0
Alpha Ratio	0
Min Investment	1,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	6.52%
Effective Maturity	2 Years 9 Months
Modified Duration	2 Years 14 Days

Growth of 10,000 investment over the years.

Date	Value
31 Oct 14	₹10,000
31 Oct 15	₹10,998
31 Oct 16	₹12,267
31 Oct 17	₹13,130
31 Oct 18	₹13,731
31 Oct 19	₹15,280

Aditya Birla Sun Life Banking & PSU Debt Fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148 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 20 Nov 19

Duration	Returns
1 Month	1%
3 Month	2.3%
6 Month	6.3%
1 Year	11.1%
3 Year	7.2%
5 Year	8.8%
10 Year
15 Year
Since launch	8.4%

Historical performance (Yearly) on absolute basis

Year	Returns
2018	6.6%
2017	5.6%
2016	12.3%
2015	8.5%
2014	12.5%
2013	9.6%
2012	9.9%
2011	9.3%
2010	5.8%
2009	5.5%

Fund Manager information for Aditya Birla Sun Life Banking & PSU Debt Fund

Name	Since	Tenure
Maneesh Dangi	1 Apr 17	2.58 Yr.
Kaustubh Gupta	29 Sep 09	10.09 Yr.

Data below for Aditya Birla Sun Life Banking & PSU Debt Fund as on 31 Oct 19

Asset Allocation

Asset Class	Value
Cash	17.8%
Debt	82.2%

Debt Sector Allocation

Sector	Value
Government	53.58%
Corporate	39.14%
Cash Equivalent	7.28%

Credit Quality

Rating	Value
AA	4.23%
AAA	95.77%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA Debentures \| -	3%	₹291 Cr	2,850
State Bank Of India Debentures \| -	3%	₹283 Cr	2,650
Clearing Corporation Of India Limited CBLO \| -	3%	₹275 Cr
ONGC Petro Additions Limited Debentures \| -	3%	₹255 Cr	255
INDIAN RAILWAY FINANCE CORPORATION LIMITED Debentures \| -	3%	₹227 Cr	2,150
7.72% GS 2025 Sovereign Bonds \| -	2%	₹206 Cr	19,500,000 ↑ 19,500,000
Power Finance Corporation Ltd. Debentures \| -	2%	₹202 Cr	2,000 ↑ 2,000
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT Debentures \| -	2%	₹184 Cr	1,750
National Highways Authority Of India Debentures \| -	2%	₹183 Cr	1,800
STATE BANK OF INDIA Debentures \| -	2%	₹180 Cr	1,732

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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.