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Five Best Performing Banking and PSU Debt Funds

Highlights

  • If you want to invest in banking and PSU debt funds, do it in the best-performing ones
  • These include DSP Banking & PSU funds, Edelweiss Banking and PSU, etc.

Banking and PSU debt funds are a type of debt funds that invest in debt securities of government banks, PSU enterprises and other government-owned companies. To know more about Banking and PSU funds, their benefits and should you invest in them, you can read another post of ours- Banking and PSU Debt Funds – Definition, Benefits and Should You Invest in Them? Let us now look at the five best performing banking and PSU debt funds.

Top Mutual Funds to Invest in Now

Best Performing Banking and PSU Debt Funds

DSP Banking and PSU Debt Fund

This fund is offered by DSP Mutual Fund. These are the key points about this fund:

  • This fund was launched on 14th Sep 2013 and has delivered 9.18% annualized returns since launch.
  • The fund manages an AUM of INR 2,881 crores.
  • The benchmark is Nifty Banking and PSU Debt Index.
  • It is rated three stars by Value Research.
  • The portfolio has 52 securities with an average maturity of 3.38 years and a yield to maturity of 5.23%
  • The credit quality of the portfolio is very good with more than 95% in AAA and SO(Sovereign)-rated securities

Edelweiss Banking and PSU Debt Fund

This fund is offered by Edelweiss Mutual Fund. These are the key points about this fund:

  • This fund was launched on 13th Sep 2013 and has delivered 9.45% annualized returns since launch.
  • The fund manages an AUM of INR 229 crores.
  • The benchmark is Nifty Banking and PSU debt index
  • It is rated four stars by Value Research.
  • The portfolio has 23 securities with an average maturity of 8.83 years and a yield to maturity of 6.82%
  • The credit quality of the portfolio is very good with more than 95% in AAA and SO(Sovereign)-rated securities.
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L&T Banking and PSU Debt Fund

This fund is offered by L&T Mutual Fund. These are the key points about this fund:

  • This fund was launched on 20th Sep 2007 and has delivered 8.43% annualized returns since launch.
  • The fund manages an AUM of INR 3,806 crores.
  • The benchmark is Nifty Banking and PSU debt index
  • It is rated three stars by Value Research.
  • The portfolio has 51 securities with an average maturity of 3.01 years and a yield to maturity of 5.37%
  • The credit quality of the portfolio is very good with more than 90% in AAA and SO(Sovereign)-rated securities.

IDFC Banking and PSU Debt Fund

This fund is offered by IDFC Mutual Fund. These are the key points about this fund:

  • This fund was launched on 7th March 2013 and has delivered 8.84% annualized returns since launch.
  • The fund manages an AUM of INR 16,791crores.
  • The benchmark is Nifty Banking and PSU debt index
  • It is rated four stars by Value Research.
  • The portfolio has 187 securities with an average maturity of 2.82 years and a yield to maturity of 5.76%
  • The credit quality of the portfolio is very good with more than 90% in AAA and SO(Sovereign)-rated securities.

Nippon India Banking and PSU Debt Fund

This fund is offered by Nippon Mutual Fund. These are the key points about this fund:

  • This fund was launched on 15th May 2015 and has delivered 9.04% annualized returns since launch.
  • The fund manages an AUM of INR 4,973 crores.
  • The benchmark is Nifty Banking and PSU debt index
  • It is rated three stars by value research.
  • The portfolio has 62 securities with an average maturity of 2.98 years and a yield to maturity of 5.65%
  • The credit quality of the portfolio is very good with more than 90% in AAA and SO(Sovereign)-rated securities.
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Let us now look at the returns delivered by these funds.

Returns of Banking and PSU Debt Funds

The table below shows the returns of Banking and PSU debt funds in % terms for regular plans.

Fund NameLast 1 YearLast 3 YearsLast 5 Years
DSP Banking & PSU12.498.738.88
Edelweiss Banking and PSU14.0210.199.23
L&T Banking & PSU12.068.418.44
IDFC Banking & PSU12.789.578.72
Nippon Banking & PSU12.478.958.98

These returns are dated 8th July 2020

If you are looking for investment in debt funds with no risk then it is advisable to invest in overnight or liquid funds. To know the best overnight and liquid funds, you can read other posts of ours.

Best Overnight Funds- https://www.wishfin.com/mutual-fund/five-best-overnight-debt-funds-to-invest-in/

Best Liquid Funds- https://www.wishfin.com/mutual-fund/5-best-performing-liquid-funds-to-invest-in/

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