Best Large Cap Mutual Funds

Why Invest in Banking and PSU Debt Funds?

  • Stability : High-quality instruments from banks and PSUs ensure financial security and low default risk
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Invest in Best Banking and PSU Debt Funds in India for 2025

Explore the list of top-performing best banking and psu debt funds schemes curated by our experts

HDFC Banking and PSU Debt Fund - Growth

  • Returns
    6.0%
  • Lock-In
    No Lock in
  • Min Investment
    ₹ 100
  • Choice Rating

Kotak Banking and PSU Debt Fund - Growth

  • Returns
    6.1%
  • Lock-In
    No Lock in
  • Min Investment
    ₹ 100
  • Choice Rating

UTI Banking & PSU Fund Growth

  • Returns
    7.0%
  • Lock-In
    No Lock in
  • Min Investment
    ₹ 500
  • Choice Rating

Nippon India Banking and PSU Fund Growth

  • Returns
    5.9%
  • Lock-In
    No Lock in
  • Min Investment
    ₹ 5000
  • Choice Rating

ICICI Prudential Banking and PSU Debt Fund Growth

  • Returns
    6.4%
  • Lock-In
    No Lock in
  • Min Investment
    ₹ 500
  • Choice Rating

You would have got

Total Investment
₹ 1200
Expected Returns
₹ 48
Total Value
₹ 1248

Past performance doesn’t assure future results; actual outcome may vary due to market dynamics.

Your Investment Amount
  • 1
  • 2
  • 3
  • 4
  • 5
per annum

Understanding Banking and PSU Debt Funds

How Do Banking and PSU Debt Funds Work?

Banking and PSU Debt Funds pool money from multiple investors to invest primarily in debt instruments issued by banks, Public Sector Undertakings (PSUs), and related entities. These funds focus on high-quality, fixed-income securities, offering stable returns and lower credit risk.

The strategy of these mutual funds ensures a relatively secure investment avenue while maintaining reasonable growth potential. By allocating a significant portion of assets to bonds and debentures issued by trusted institutions, they aim to provide consistent income to investors.

Banking and PSU Funds FAQs

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