Based on 1-year returns, the top performing Banking and PSU Debt funds are Franklin India Banking & PSU Debt Fund Direct-Growth with 6.76% return, UTI Banking & PSU Debt Fund Direct-Growth with 6.30% return, and Bandhan Banking and PSU Debt Fund Direct-Growth with 6.04% return. The category average 1-year return is 5.56%.
Best Banking and PSU Debt Mutual Funds 2026
Total Schemes
20
No. of schemes
Total AUM
₹ 0.75Lakh Cr
As on latest
Category Return (5Y)
6.22 %
CAGR
Benchmark Data
NA
This category currently has no benchmark assigned.
Category Returns (%)
| Period | 1M | 6M | 1Y | 3Y CAGR | 5Y CAGR | 10Y CAGR | YTD |
|---|---|---|---|---|---|---|---|
Banking and PSU Debt | 0.18 % | 2.84 % | 5.56 % | 7.15 % | 6.22 % | 7.03 % | 3.61 % |
Benchmark Not Available No benchmark assigned | - | - | - | - | - | - | - |
Banking and PSU Debt vs Other Categories
5Y CAGR Return Comparison
Key Insights
Banking and PSU Debt delivered 6.22% CAGR over the last 5 years.
It ranks #12 out of 18 categories based on 5Y performance.
Below the category average return of 6.49%.
11 categories outperform it, while 6 categories have lower returns.
Top performer: Credit Risk (10.54%).
Lowest performer: Long Term (5.63%).
Let's have a closer look
Now let us jump and check about these top 15 mutual fund schemes.
Bandhan Banking and PSU Debt Fund Direct-Growth
Fund Performance: Bandhan Banking and PSU Debt Fund Direct-Growth has given 7.23% annualized returns in the past three years and 6.26% in the last 5 years. The Bandhan Banking and PSU Debt Fund Direct-Growth comes under the Debt category of Bandhan Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Bandhan Banking and PSU Debt Fund Direct-Growth via lump sum is ₹ 1,000.00 and via SIP is ₹ 100.00.
Min Investment Amt
₹ 1,000.00
AUM
₹ 12,122.00Cr
1Y Returns
6.04%
Expense Ratio
0.36%
Axis Banking and PSU Debt Direct-Growth
Fund Performance: Axis Banking and PSU Debt Direct-Growth has given 7.07% annualized returns in the past three years and 6.19% in the last 5 years. The Axis Banking and PSU Debt Direct-Growth comes under the Debt category of Axis Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Axis Banking and PSU Debt Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 1,000.00.
Min Investment Amt
₹ 5,000.00
AUM
₹ 12,003.90Cr
1Y Returns
5.50%
Expense Ratio
0.36%
Aditya Birla Sun Life Banking and PSU Debt Fund Direct-Growth
Fund Performance: Aditya Birla Sun Life Banking and PSU Debt Fund Direct-Growth has given 7.14% annualized returns in the past three years and 6.28% in the last 5 years. The Aditya Birla Sun Life Banking and PSU Debt Fund Direct-Growth comes under the Debt category of Aditya Birla Sun Life Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life Banking and PSU Debt Fund Direct-Growth via lump sum is ₹ 1,000.00 and via SIP is ₹ 1,000.00.
Min Investment Amt
₹ 1,000.00
AUM
₹ 8,682.46Cr
1Y Returns
5.35%
Expense Ratio
0.41%
ICICI Prudential Banking and PSU Debt Fund Direct-Growth
Fund Performance: ICICI Prudential Banking and PSU Debt Fund Direct-Growth has given 7.38% annualized returns in the past three years and 6.73% in the last 5 years. The ICICI Prudential Banking and PSU Debt Fund Direct-Growth comes under the Debt category of ICICI Prudential Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Banking and PSU Debt Fund Direct-Growth via lump sum is ₹ 500.00 and via SIP is ₹ 100.00.
Min Investment Amt
₹ 500.00
AUM
₹ 8,667.02Cr
1Y Returns
5.99%
Expense Ratio
0.40%
HDFC Banking and PSU Debt Fund Direct-Growth
Fund Performance: HDFC Banking and PSU Debt Fund Direct-Growth has given 7.21% annualized returns in the past three years and 6.32% in the last 5 years. The HDFC Banking and PSU Debt Fund Direct-Growth comes under the Debt category of HDFC Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in HDFC Banking and PSU Debt Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.
Min Investment Amt
₹ 100.00
AUM
₹ 5,186.08Cr
1Y Returns
5.53%
Expense Ratio
0.35%
Nippon India Banking and PSU Debt Fund Direct-Growth
Fund Performance: Nippon India Banking and PSU Debt Fund Direct-Growth has given 7.21% annualized returns in the past three years and 6.29% in the last 5 years. The Nippon India Banking and PSU Debt Fund Direct-Growth comes under the Debt category of Nippon India Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Nippon India Banking and PSU Debt Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 100.00.
Min Investment Amt
₹ 5,000.00
AUM
₹ 5,149.77Cr
1Y Returns
5.50%
Expense Ratio
0.39%
Kotak Banking and PSU Debt Fund Direct-Growth
Fund Performance: Kotak Banking and PSU Debt Fund Direct-Growth has given 7.44% annualized returns in the past three years and 6.53% in the last 5 years. The Kotak Banking and PSU Debt Fund Direct-Growth comes under the Debt category of Kotak Mahindra Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Kotak Banking and PSU Debt Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.
Min Investment Amt
₹ 100.00
AUM
₹ 4,936.81Cr
1Y Returns
5.88%
Expense Ratio
0.40%
SBI Banking and PSU Debt Fund Direct-Growth
Fund Performance: SBI Banking and PSU Debt Fund Direct-Growth has given 7.25% annualized returns in the past three years and 6.13% in the last 5 years. The SBI Banking and PSU Debt Fund Direct-Growth comes under the Debt category of SBI Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in SBI Banking and PSU Debt Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.
Min Investment Amt
₹ 5,000.00
AUM
₹ 3,869.84Cr
1Y Returns
5.54%
Expense Ratio
0.41%
HSBC Banking and PSU Debt Fund Direct-Growth
Fund Performance: HSBC Banking and PSU Debt Fund Direct-Growth has given 7.08% annualized returns in the past three years and 5.70% in the last 5 years. The HSBC Banking and PSU Debt Fund Direct-Growth comes under the Debt category of HSBC Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in HSBC Banking and PSU Debt Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 1,000.00.
Min Investment Amt
₹ 5,000.00
AUM
₹ 3,777.23Cr
1Y Returns
5.55%
Expense Ratio
0.28%
DSP Banking and PSU Debt Fund Direct-Growth
Fund Performance: DSP Banking and PSU Debt Fund Direct-Growth has given 7.02% annualized returns in the past three years and 6.03% in the last 5 years. The DSP Banking and PSU Debt Fund Direct-Growth comes under the Debt category of DSP Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in DSP Banking and PSU Debt Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.
Min Investment Amt
₹ 100.00
AUM
₹ 3,270.25Cr
1Y Returns
4.92%
Expense Ratio
0.34%
Edelweiss Banking and PSU Debt Fund Direct-Growth
Fund Performance: Edelweiss Banking and PSU Debt Fund Direct-Growth has given 7.15% annualized returns in the past three years and 6.17% in the last 5 years. The Edelweiss Banking and PSU Debt Fund Direct-Growth comes under the Debt category of Edelweiss Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Edelweiss Banking and PSU Debt Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.
Min Investment Amt
₹ 100.00
AUM
₹ 3,139.98Cr
1Y Returns
5.22%
Expense Ratio
0.40%
LIC MF Banking & PSU Debt Fund Direct-Growth
Fund Performance: LIC MF Banking & PSU Debt Fund Direct-Growth has given 7.38% annualized returns in the past three years and 6.30% in the last 5 years. The LIC MF Banking & PSU Debt Fund Direct-Growth comes under the Debt category of LIC Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in LIC MF Banking & PSU Debt Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 200.00.
Min Investment Amt
₹ 5,000.00
AUM
₹ 1,648.88Cr
1Y Returns
5.69%
Expense Ratio
0.28%
UTI Banking & PSU Debt Fund Direct-Growth
Fund Performance: UTI Banking & PSU Debt Fund Direct-Growth has given 7.45% annualized returns in the past three years and 7.71% in the last 5 years. The UTI Banking & PSU Debt Fund Direct-Growth comes under the Debt category of UTI Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in UTI Banking & PSU Debt Fund Direct-Growth via lump sum is ₹ 500.00 and via SIP is ₹ 500.00.
Min Investment Amt
₹ 500.00
AUM
₹ 1,482.56Cr
1Y Returns
6.30%
Expense Ratio
0.24%
Franklin India Banking & PSU Debt Fund Direct-Growth
Fund Performance: Franklin India Banking & PSU Debt Fund Direct-Growth has given 7.58% annualized returns in the past three years and 6.44% in the last 5 years. The Franklin India Banking & PSU Debt Fund Direct-Growth comes under the Debt category of Franklin Templeton Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Franklin India Banking & PSU Debt Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.
Min Investment Amt
₹ 5,000.00
AUM
₹ 567.02Cr
1Y Returns
6.76%
Expense Ratio
0.23%
Bajaj Finserv Banking and PSU Debt Fund Direct-Growth
Fund Performance: The Bajaj Finserv Banking and PSU Debt Fund Direct-Growth comes under the Debt category of Bajaj Finserv Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Bajaj Finserv Banking and PSU Debt Fund Direct-Growth via lump sum is ₹ 1,000.00 and via SIP is ₹ 1,000.00.
Min Investment Amt
₹ 1,000.00
AUM
₹ 368.32Cr
1Y Returns
5.41%
Expense Ratio
0.35%
Explore Other Categories
Explore different mutual fund categories based on investment strategy, market cap exposure and risk profile.
View All
Explore Mutual Fund Tools
Discover advanced mutual fund analysis tools, calculators, screeners and portfolio research features to make better investment decisions.
Dashboard
Track mutual fund performance, allocation trends and investment insights.
Explore Tool
Strategies
Create and manage mutual fund investment and allocation strategies.
Explore Tool
Screener
Filter and discover mutual funds based on returns, risk and categories.
Explore Tool
Factor Model
Analyze mutual funds using quantitative and factor-based scoring models.
Explore Tool
Compare
Compare mutual fund returns, risk, expense ratio and portfolio metrics.
Explore Tool
Alpha Analysis
Analyze mutual fund alpha generation and benchmark outperformance trends.
Explore Tool
Magicboard
Discover top-performing mutual funds using Sharpely’s smart ranking engine.
Explore Tool
NFO Tracker
Track latest NFO launches, timelines and new mutual fund opportunities.
Explore Tool
SIP Returns
Calculate SIP returns and estimate long-term mutual fund wealth creation.
Explore Tool
Rolling Returns
Analyze rolling return consistency across different investment periods.
Explore Tool
SWP Calculator
Estimate systematic withdrawal plans and retirement income projections.
Explore Tool