Banking & PSU funds in India
39 plans (19 Regular, 20 Direct), rated on their track record against the median fund in their category and their peers. Data as of 8 Nov 2026.
Bonds of banks and government-owned companies: high quality and steady, similar to corporate bond funds. SEBI requires banking & psu funds to invest at least 80% in bonds of banks, public sector undertakings and public financial institutions.
The difference, on ₹10 lakh invested three years ago, between the strongest banking & psu fund (7.1% a year) and the weakest (6.2% a year). Same category, same SEBI rules, same market. 11 of 18 funds beat the median fund in their category over the same period.
Regular plans, to the latest NAV. Past returns, not a forecast.
Regular plans (19)
| Fund | Rating | 3Y return | 3Y vs index | Expense ratio | AUM |
|---|---|---|---|---|---|
| UTI Banking & PSU Debt FundUTI Mutual Fund · 12.7 yrs | A+ | 7.1% | +0.6% | 0.46% | ₹1,440 cr |
| Franklin India Banking & PSU Debt FundFranklin Templeton Mutual Fund · 12.5 yrs | A+ | 7.0% | +0.5% | 0.49% | ₹561 cr |
| LIC MF Banking & PSU Debt FundLIC Mutual Fund · 19.4 yrs | A | 6.7% | +0.1% | 0.65% | ₹1,592 cr |
| ICICI Prudential Banking and PSU Debt FundICICI Prudential Mutual Fund · 16.8 yrs | A | 6.7% | +0.2% | 0.72% | ₹8,081 cr |
| Axis Banking and PSU Debt FundAxis Mutual Fund · 14.4 yrs | A | 6.6% | +0.0% | 0.65% | ₹11,834 cr |
| Bandhan Banking and PSU Debt FundBandhan Mutual Fund · 13.7 yrs | A | 6.7% | +0.2% | 0.68% | ₹11,848 cr |
| Kotak Banking and PSU Debt FundKotak Mahindra Mutual Fund · 13.2 yrs | B | 6.8% | +0.3% | 0.75% | ₹4,676 cr |
| Aditya Birla Sun Life Banking & PSU Debt FundAditya Birla Sun Life Mutual Fund · 18.5 yrs | B | 6.5% | -0.0% | 0.75% | ₹8,347 cr |
| HDFC Banking and PSU Debt FundHDFC Mutual Fund · 12.6 yrs | B | 6.5% | -0.0% | 0.68% | ₹5,054 cr |
| Invesco India Banking and PSU Debt FundInvesco Mutual Fund · 13.8 yrs | B | 6.7% | +0.1% | 0.63% | ₹78 cr |
| HSBC Banking and PSU Debt FundHSBC Mutual Fund · 3.9 yrs | B | 6.4% | -0.1% | 0.61% | ₹3,698 cr |
| Edelweiss Banking and PSU Debt FundEdelweiss Mutual Fund · 9.9 yrs | B | 6.7% | +0.2% | 0.73% | ₹3,142 cr |
| ITI Banking & PSU Debt FundITI Mutual Fund · 6.0 yrs | B | 6.3% | -0.2% | 0.75% | ₹26 cr |
| SBI Banking & PSU Debt FundSBI Mutual Fund · 13.0 yrs | C | 6.6% | +0.1% | 0.84% | ₹7,250 cr |
| Nippon India Banking and PSU Debt FundNippon India Mutual Fund · 11.5 yrs | C | 6.6% | +0.1% | 0.78% | ₹4,890 cr |
| DSP Banking and PSU Debt FundDSP Mutual Fund · 13.1 yrs | C | 6.4% | -0.1% | 0.58% | ₹2,492 cr |
| Canara Robeco Banking and PSU Debt FundCanara Robeco Mutual Fund · 4.2 yrs | C | 6.2% | -0.4% | 0.70% | ₹157 cr |
| Mirae Asset Banking and PSU Debt FundMirae Asset Mutual Fund · 6.3 yrs | C | 6.4% | -0.2% | 0.82% | ₹38 cr |
| Bajaj Finserv Banking and PSU Debt FundBajaj Finserv Mutual Fund · 3.0 yrs | – | – | – | 0.89% | ₹305 cr |
Direct plans (20)
| Fund | Rating | 3Y return | 3Y vs index | Expense ratio | AUM |
|---|---|---|---|---|---|
| UTI Banking & PSU Debt FundUTI Mutual Fund · 12.7 yrs | A+ | 7.4% | +0.5% | 0.23% | ₹1,440 cr |
| LIC MF Banking & PSU Debt FundLIC Mutual Fund · 13.8 yrs | A+ | 7.2% | +0.3% | 0.28% | ₹1,592 cr |
| Franklin India Banking & PSU Debt FundFranklin Templeton Mutual Fund · 12.5 yrs | A | 7.3% | +0.4% | 0.23% | ₹561 cr |
| Sundaram Banking and PSU Debt Fund (Formerly Known as Sundaram Banking and PSU Fund)Sundaram Mutual Fund · 13.8 yrs | A | 7.0% | +0.0% | 0.27% | ₹256 cr |
| ICICI Prudential Banking and PSU Debt FundICICI Prudential Mutual Fund · 13.6 yrs | A | 7.1% | +0.2% | 0.40% | ₹8,081 cr |
| ITI Banking & PSU Debt FundITI Mutual Fund · 6.0 yrs | B | 6.9% | -0.1% | 0.23% | ₹26 cr |
| Kotak Banking and PSU Debt FundKotak Mahindra Mutual Fund · 13.2 yrs | B | 7.2% | +0.3% | 0.40% | ₹4,676 cr |
| SBI Banking & PSU Debt FundSBI Mutual Fund · 13.0 yrs | B | 7.1% | +0.1% | 0.41% | ₹7,250 cr |
| HDFC Banking and PSU Debt FundHDFC Mutual Fund · 12.6 yrs | B | 6.9% | +0.0% | 0.35% | ₹5,054 cr |
| Axis Banking and PSU Debt FundAxis Mutual Fund · 13.8 yrs | B | 6.9% | -0.1% | 0.36% | ₹11,834 cr |
| Invesco India Banking and PSU Debt FundInvesco Mutual Fund · 13.8 yrs | B | 7.0% | +0.1% | 0.26% | ₹78 cr |
| Nippon India Banking and PSU Debt FundNippon India Mutual Fund · 11.5 yrs | B | 7.0% | +0.1% | 0.39% | ₹4,890 cr |
| Bandhan Banking and PSU Debt FundBandhan Mutual Fund · 13.7 yrs | B | 7.0% | +0.1% | 0.39% | ₹11,848 cr |
| HSBC Banking and PSU Debt FundHSBC Mutual Fund · 3.9 yrs | B | 6.8% | -0.1% | 0.28% | ₹3,698 cr |
| Aditya Birla Sun Life Banking & PSU Debt FundAditya Birla Sun Life Mutual Fund · 13.8 yrs | C | 6.9% | -0.1% | 0.41% | ₹8,347 cr |
| Edelweiss Banking and PSU Debt FundEdelweiss Mutual Fund · 9.9 yrs | C | 7.0% | +0.1% | 0.40% | ₹3,142 cr |
| Mirae Asset Banking and PSU Debt FundMirae Asset Mutual Fund · 6.3 yrs | C | 6.8% | -0.1% | 0.37% | ₹38 cr |
| DSP Banking and PSU Debt FundDSP Mutual Fund · 13.1 yrs | C | 6.7% | -0.2% | 0.34% | ₹2,492 cr |
| Canara Robeco Banking and PSU Debt FundCanara Robeco Mutual Fund · 4.2 yrs | C | 6.5% | -0.4% | 0.42% | ₹157 cr |
| Bajaj Finserv Banking and PSU Debt FundBajaj Finserv Mutual Fund · 3.0 yrs | – | – | – | 0.35% | ₹305 cr |
Common questions
What does a banking & psu fund invest in?
SEBI requires banking & psu funds to invest at least 80% in bonds of banks, public sector undertakings and public financial institutions.
How many banking & psu funds beat their index over 3 years?
11 of 18 banking & psu funds (Regular plans with 3 years of history) beat the median fund in their category over the 3 years to 8 Nov 2026.
How are these funds rated?
Each fund is compared only with funds in its category and plan type, on its long-run return over the index, risk-adjusted return, consistency, cost and portfolio. The ratings describe the track record so far; our own backtest found they do not predict future returns.
Ratings describe past track records and are not a recommendation to buy or sell. Read the scheme documents before investing.