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Top 5 Best Banking and PSU Debt Funds 2022

Updated on November 30, 2022 , 18800 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 2022 - 2023.

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Top Performing Banking and PSU Debt Funds

Fund	NAV	Net Assets (Cr)	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	2021 (%)	Debt Yield (YTM)	Mod. Duration	Eff. Maturity
UTI Banking & PSU Debt Fund Growth	₹18.2148 ↓ -0.01	₹519	0.8	3.6	10.2	7.2	2.8	7.47%	3Y 5M 16D	4Y 3M 11D
HDFC Banking and PSU Debt Fund Growth	₹19.0296 ↑ 0.00	₹4,944	1.2	2.7	3	5.7	3.7	7.24%	1Y 4M 24D	2Y 5M 14D
ICICI Prudential Banking and PSU Debt Fund Growth	₹26.9888 ↓ 0.00	₹7,542	1.5	3.3	3.8	5.9	4.2	7.19%	1Y 7M 10D	6Y 3M 4D
Kotak Banking and PSU Debt fund Growth	₹54.1163 ↑ 0.00	₹6,446	1.5	3.3	3.5	5.9	3.9	7.5%	1Y 11M 26D	5Y 6M 25D
Aditya Birla Sun Life Banking & PSU Debt Fund Growth	₹303.261 ↑ 0.04	₹8,234	1.2	2.8	3.4	5.9	3.6	7.46%	1Y 11M 16D	3Y 7D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 2 Dec 22

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 2021 was 2.8% , 2020 was 8.9% and 2019 was -1% .

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

UTI Banking & PSU Debt Fund Growth
Launch Date	3 Feb 14
NAV (02 Dec 22)	₹18.2148 ↓ -0.01 (-0.03 %)
Net Assets (Cr)	₹519 on 31 Oct 22
Category	Debt - Banking & PSU Debt
AMC	UTI Asset Management Company Ltd
Rating	☆☆☆☆☆
Risk	Moderate
Expense Ratio	0.31
Sharpe Ratio	0.85
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	500
Exit Load	NIL
Yield to Maturity	7.47%
Effective Maturity	4 Years 3 Months 11 Days
Modified Duration	3 Years 5 Months 16 Days

Growth of 10,000 investment over the years.

Date	Value
30 Nov 17	₹10,000
30 Nov 18	₹10,562
30 Nov 19	₹10,548
30 Nov 20	₹11,487
30 Nov 21	₹11,808
30 Nov 22	₹13,008

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 2 Dec 22

Duration	Returns
1 Month	1%
3 Month	0.8%
6 Month	3.6%
1 Year	10.2%
3 Year	7.2%
5 Year	5.4%
10 Year
15 Year
Since launch	7%

Historical performance (Yearly) on absolute basis

Year	Returns
2021	2.8%
2020	8.9%
2019	-1%
2018	6.8%
2017	6.4%
2016	11.7%
2015	8.6%
2014
2013
2012

Fund Manager information for UTI Banking & PSU Debt Fund

Name	Since	Tenure
Anurag Mittal	1 Dec 21	0.92 Yr.

Data below for UTI Banking & PSU Debt Fund as on 31 Oct 22

Asset Allocation

Asset Class	Value
Cash	4.23%
Debt	95.77%

Debt Sector Allocation

Sector	Value
Government	48.61%
Corporate	47.15%
Cash Equivalent	4.23%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
7.38% Govt Stock 2027 Sovereign Bonds \| -	22%	₹115 Cr	1,150,000,000 ↓ -100,000,000
National Housing Bank Debentures \| -	8%	₹40 Cr	400
Power Finance Corporation Ltd. Debentures \| -	7%	₹35 Cr	350
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 \| -	5%	₹23 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 7.7% since its launch. Ranked 6 in Banking & PSU Debt category. Return for 2021 was 3.7% , 2020 was 10.6% and 2019 was 10.2% .

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 (02 Dec 22)	₹19.0296 ↑ 0.00 (0.01 %)
Net Assets (Cr)	₹4,944 on 31 Oct 22
Category	Debt - Banking & PSU Debt
AMC	HDFC Asset Management Company Limited
Rating	☆☆☆☆☆
Risk	Moderately Low
Expense Ratio	0.81
Sharpe Ratio	-1.63
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	300
Exit Load	NIL
Yield to Maturity	7.24%
Effective Maturity	2 Years 5 Months 14 Days
Modified Duration	1 Year 4 Months 24 Days

Growth of 10,000 investment over the years.

Date	Value
30 Nov 17	₹10,000
30 Nov 18	₹10,449
30 Nov 19	₹11,616
30 Nov 20	₹12,804
30 Nov 21	₹13,313
30 Nov 22	₹13,713

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 2 Dec 22

Duration	Returns
1 Month	0.7%
3 Month	1.2%
6 Month	2.7%
1 Year	3%
3 Year	5.7%
5 Year	6.5%
10 Year
15 Year
Since launch	7.7%

Historical performance (Yearly) on absolute basis

Year	Returns
2021	3.7%
2020	10.6%
2019	10.2%
2018	5.9%
2017	6.3%
2016	10.8%
2015	9.8%
2014
2013
2012

Fund Manager information for HDFC Banking and PSU Debt Fund

Name	Since	Tenure
Anil Bamboli	26 Mar 14	8.61 Yr.
Priya Ranjan	1 May 22	0.5 Yr.

Data below for HDFC Banking and PSU Debt Fund as on 31 Oct 22

Asset Allocation

Asset Class	Value
Cash	25.14%
Debt	74.86%

Debt Sector Allocation

Sector	Value
Government	50.46%
Corporate	36.26%
Cash Equivalent	13.28%

Credit Quality

Rating	Value
AA	2.36%
AAA	97.64%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
4.93% Govt Stock 2028 Sovereign Bonds \| -	6%	₹275 Cr	28,000,000
National Bank For Agriculture And Rural Development Debentures \| -	5%	₹271 Cr	2,700
Power Finance Corporation Ltd. Debentures \| -	4%	₹174 Cr	1,750
6.79% Govt Stock 2027 Sovereign Bonds \| -	3%	₹141 Cr	14,500,000
Housing And Urban Development Corporation Limited Debentures \| -	3%	₹130 Cr	1,250
State Bank Of India Debentures \| -	3%	₹126 Cr	1,250
State Bank Of India Debentures \| -	3%	₹124 Cr	1,300
Mahanagar Telephone Nigam Limited. Debentures \| -	2%	₹102 Cr	1,000
Hindustan Petroleum Corporation Limited Debentures \| -	2%	₹100 Cr	1,000
Indian Oil Corporation Limited Debentures \| -	2%	₹100 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 8% since its launch. Ranked 13 in Banking & PSU Debt category. Return for 2021 was 4.2% , 2020 was 9.3% and 2019 was 10.1% .

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 (02 Dec 22)	₹26.9888 ↓ 0.00 (-0.01 %)
Net Assets (Cr)	₹7,542 on 15 Nov 22
Category	Debt - Banking & PSU Debt
AMC	ICICI Prudential Asset Management Company Limited
Rating	☆☆☆☆
Risk	Moderate
Expense Ratio	0.8
Sharpe Ratio	-0.62
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	100
Exit Load	NIL
Yield to Maturity	7.19%
Effective Maturity	6 Years 3 Months 4 Days
Modified Duration	1 Year 7 Months 10 Days

Growth of 10,000 investment over the years.

Date	Value
30 Nov 17	₹10,000
30 Nov 18	₹10,468
30 Nov 19	₹11,546
30 Nov 20	₹12,634
30 Nov 21	₹13,232
30 Nov 22	₹13,735

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 2 Dec 22

Duration	Returns
1 Month	0.6%
3 Month	1.5%
6 Month	3.3%
1 Year	3.8%
3 Year	5.9%
5 Year	6.6%
10 Year
15 Year
Since launch	8%

Historical performance (Yearly) on absolute basis

Year	Returns
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%
2012	8.9%

Fund Manager information for ICICI Prudential Banking and PSU Debt Fund

Name	Since	Tenure
Rahul Goswami	27 Sep 12	10.1 Yr.
Chandni Gupta	15 Jan 15	7.8 Yr.

Data below for ICICI Prudential Banking and PSU Debt Fund as on 15 Nov 22

Asset Allocation

Asset Class	Value
Cash	33.34%
Debt	66.66%

Debt Sector Allocation

Sector	Value
Government	42.53%
Corporate	40.04%
Cash Equivalent	17.43%

Credit Quality

Rating	Value
AA	9.88%
AAA	90.12%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
7.42% Govt Stock 2033 Sovereign Bonds \| -	21%	₹1,602 Cr	160,684,470
Small Industries Development Bank Of India Debentures \| -	8%	₹603 Cr	6,100
5.38% Govt Stock 2034 Sovereign Bonds \| -	8%	₹579 Cr	58,936,820
ICICI Bank Limited Debentures \| -	5%	₹403 Cr	4,008
Rec Limited Debentures \| -	4%	₹330 Cr	3,300
Bharat Sanchar Nigam Limited Debentures \| -	3%	₹240 Cr	2,540
Chennai Petroleum Corporation Ltd. Debentures \| -	3%	₹229 Cr	2,300
Axis Bank Ltd. Debentures \| -	2%	₹140 Cr	3,000 ↑ 3,000
State Bank Of India Debentures \| -	2%	₹134 Cr	1,319
Mahanagar Telephone Nigam Limited. Debentures \| -	2%	₹124 Cr	1,301

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 2021 was 3.9% , 2020 was 10.5% and 2019 was 10.8% .

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 (02 Dec 22)	₹54.1163 ↑ 0.00 (0.01 %)
Net Assets (Cr)	₹6,446 on 15 Nov 22
Category	Debt - Banking & PSU Debt
AMC	Kotak Mahindra Asset Management Co Ltd
Rating	☆☆☆☆
Risk	Moderately Low
Expense Ratio	0.59
Sharpe Ratio	-1.3
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	7.5%
Effective Maturity	5 Years 6 Months 25 Days
Modified Duration	1 Year 11 Months 26 Days

Growth of 10,000 investment over the years.

Date	Value
30 Nov 17	₹10,000
30 Nov 18	₹10,562
30 Nov 19	₹11,808
30 Nov 20	₹13,021
30 Nov 21	₹13,544
30 Nov 22	₹14,025

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 2 Dec 22

Duration	Returns
1 Month	0.9%
3 Month	1.5%
6 Month	3.3%
1 Year	3.5%
3 Year	5.9%
5 Year	7%
10 Year
15 Year
Since launch

Historical performance (Yearly) on absolute basis

Year	Returns
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%
2012	7.6%

Fund Manager information for Kotak Banking and PSU Debt fund

Name	Since	Tenure
Deepak Agrawal	15 Apr 08	14.56 Yr.
Abhishek Bisen	1 Nov 22	0 Yr.
Vihag Mishra	1 Mar 22	0.67 Yr.

Data below for Kotak Banking and PSU Debt fund as on 15 Nov 22

Asset Allocation

Asset Class	Value
Cash	29.26%
Debt	70.74%

Debt Sector Allocation

Sector	Value
Government	50.45%
Corporate	39.89%
Cash Equivalent	9.66%

Credit Quality

Rating	Value
AA	8.83%
AAA	91.17%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
7.42% Govt Stock 2033 Sovereign Bonds \| -	14%	₹867 Cr	86,940,613
National Bank For Agriculture And Rural Development Debentures \| -	5%	₹333 Cr	3,500
182 DTB 23032023 Sovereign Bonds \| -	3%	₹212 Cr	21,828,860
State Bank Of India Debentures \| -	3%	₹192 Cr	1,900
6.42% Govt Stock 2031 Sovereign Bonds \| -	3%	₹190 Cr	19,000,000
Rural Electrification Corporation Limited Debentures \| -	3%	₹161 Cr	1,600
National Bank For Agriculture And Rural Development Debentures \| -	3%	₹161 Cr	1,650
Bank Of Baroda Debentures \| -	2%	₹156 Cr	1,550
Hindustan Petroleum Corporation Limited Debentures \| -	2%	₹150 Cr	1,500
Power Finance Corporation Ltd. Debentures \| -	2%	₹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 2021 was 3.6% , 2020 was 10.9% and 2019 was 9.9% .

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 (02 Dec 22)	₹303.261 ↑ 0.04 (0.01 %)
Net Assets (Cr)	₹8,234 on 31 Oct 22
Category	Debt - Banking & PSU Debt
AMC	Birla Sun Life Asset Management Co Ltd
Rating	☆☆☆☆
Risk	Moderate
Expense Ratio	0.68
Sharpe Ratio	-1.36
Information Ratio	0
Alpha Ratio	0
Min Investment	1,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	7.46%
Effective Maturity	3 Years 7 Days
Modified Duration	1 Year 11 Months 16 Days

Growth of 10,000 investment over the years.

Date	Value
30 Nov 17	₹10,000
30 Nov 18	₹10,551
30 Nov 19	₹11,705
30 Nov 20	₹12,954
30 Nov 21	₹13,438
30 Nov 22	₹13,891

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 2 Dec 22

Duration	Returns
1 Month	0.7%
3 Month	1.2%
6 Month	2.8%
1 Year	3.4%
3 Year	5.9%
5 Year	6.8%
10 Year
15 Year
Since launch	7.9%

Historical performance (Yearly) on absolute basis

Year	Returns
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%
2012	9.9%

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

Name	Since	Tenure
Kaustubh Gupta	29 Sep 09	13.1 Yr.
Harshil Suvarnkar	22 Mar 21	1.61 Yr.

Data below for Aditya Birla Sun Life Banking & PSU Debt Fund as on 31 Oct 22

Asset Allocation

Asset Class	Value
Cash	27.52%
Debt	72.48%

Debt Sector Allocation

Sector	Value
Government	48.66%
Corporate	43.54%
Cash Equivalent	7.8%

Credit Quality

Rating	Value
AA	6.32%
AAA	93.68%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Housing And Urban Development Corporation Limited Debentures \| -	3%	₹272 Cr	2,750
Axis Bank Limited Debentures \| -	2%	₹150 Cr	1,500 ↓ -550
Power Finance Corporation Ltd. Debentures \| -	2%	₹150 Cr	1,505
Housing And Urban Development Corporation Limited Debentures \| -	2%	₹143 Cr	1,450
Power Finance Corporation Ltd. Debentures \| -	2%	₹141 Cr	1,420
5.22% Govt Stock 2025 Sovereign Bonds \| -	2%	₹137 Cr	14,379,800
Hdb Financial Services Limited Debentures \| -	2%	₹134 Cr	1,350
State Bank Of India Debentures \| -	2%	₹127 Cr	1,350
Power Finance Corporation Ltd. Debentures \| -	2%	₹123 Cr	1,240
Bank Of Baroda Debentures \| -	2%	₹123 Cr	1,250

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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.