# Banking and PSU Debt funds

At least 80% in debt of banks, public sector undertakings and public financial institutions. Called Banking and PSU until SEBI renamed the debt categories in 2026.

Full page: https://discovermf.com/categories/banking-and-psu-debt
Figures as of 3 Nov 2026, from DiscoverMF. Information, not investment advice. Past returns do not indicate future returns. Mutual fund investments are subject to market risks; read all scheme-related documents carefully.

20 funds managing ₹75,829 cr. Category averages: +3.8% over one year, +6.5% a year over three years; typical expense ratio 0.69%.

## All funds, by three-year return

| Fund | 1 year | 3 years (a year) | 5 years (a year) | Volatility | Expense ratio | Fund size |
| --- | --- | --- | --- | --- | --- | --- |
| [UTI Banking & PSU Debt Fund](https://discovermf.com/funds/uti-banking-psu-debt-fund-126939.md) | +5.5% | +7.2% | +7.5% | 0.7% | 0.46% | ₹1,441 cr |
| [Franklin India Banking & PSU Debt Fund](https://discovermf.com/funds/franklin-india-banking-psu-debt-fund-129006.md) | +4.9% | +7.0% | +6.1% | 1.1% | 0.49% | ₹562 cr |
| [Edelweiss Banking and PSU Debt Fund](https://discovermf.com/funds/edelweiss-banking-and-psu-debt-fund-140283.md) | +3.7% | +6.7% | +5.7% | 1.1% | 0.73% | ₹3,145 cr |
| [Sundaram Banking and PSU Debt Fund](https://discovermf.com/funds/sundaram-banking-and-psu-debt-fund-100784.md) | +3.9% | +6.7% | +5.8% | 1.2% | 0.42% | ₹256 cr |
| [Bandhan Banking and PSU Debt Fund](https://discovermf.com/funds/bandhan-banking-and-psu-debt-fund-121280.md) | +4.8% | +6.7% | +5.9% | 1.2% | 0.68% | ₹11,857 cr |
| [Kotak Banking and PSU Debt Fund](https://discovermf.com/funds/kotak-banking-and-psu-debt-fund-123690.md) | +3.8% | +6.6% | +5.9% | 1.4% | 0.75% | ₹4,676 cr |
| [LIC MF Banking & PSU Debt Fund](https://discovermf.com/funds/lic-mf-banking-psu-debt-fund-105823.md) | +3.9% | +6.6% | +5.7% | 1.2% | 0.65% | ₹1,594 cr |
| [SBI Banking & PSU Debt Fund](https://discovermf.com/funds/sbi-banking-psu-debt-fund-125498.md) | +4.0% | +6.6% | +5.7% | 1.1% | 0.78% | ₹7,251 cr |
| [ICICI Prudential Banking and PSU Debt Fund](https://discovermf.com/funds/icici-prudential-banking-and-psu-debt-fund-112342.md) | +4.0% | +6.6% | +6.1% | 1.5% | 0.74% | ₹8,099 cr |
| [Invesco India Banking and PSU Debt Fund](https://discovermf.com/funds/invesco-india-banking-and-psu-debt-fund-118232.md) | +3.5% | +6.6% | +5.2% | 1.4% | 0.63% | ₹78.1 cr |
| [Nippon India Banking and PSU Debt Fund](https://discovermf.com/funds/nippon-india-banking-and-psu-debt-fund-134545.md) | +3.4% | +6.5% | +5.7% | 1.5% | 0.78% | ₹4,899 cr |
| [Axis Banking and PSU Debt Fund](https://discovermf.com/funds/axis-banking-and-psu-debt-fund-117446.md) | +3.7% | +6.4% | +5.8% | 1.2% | 0.65% | ₹11,830 cr |
| [Aditya Birla Sun Life Banking & PSU Debt Fund](https://discovermf.com/funds/aditya-birla-sun-life-banking-psu-debt-fund-108273.md) | +3.2% | +6.4% | +5.8% | 1.3% | 0.75% | ₹8,348 cr |
| [HDFC Banking and PSU Debt Fund](https://discovermf.com/funds/hdfc-banking-and-psu-debt-fund-128628.md) | +3.2% | +6.4% | +5.7% | 1.5% | 0.68% | ₹5,064 cr |
| [DSP Banking and PSU Debt Fund](https://discovermf.com/funds/dsp-banking-and-psu-debt-fund-124172.md) | +2.8% | +6.3% | +5.6% | 1.7% | 0.58% | ₹2,496 cr |
| [HSBC Banking and PSU Debt Fund](https://discovermf.com/funds/hsbc-banking-and-psu-debt-fund-151104.md) | +3.6% | +6.3% | — | 1.3% | 0.61% | ₹3,704 cr |
| [ITI Banking & PSU Debt Fund](https://discovermf.com/funds/iti-banking-psu-debt-fund-148535.md) | +3.6% | +6.2% | +5.7% | 0.9% | 0.75% | ₹26.3 cr |
| [Mirae Asset Banking and PSU Debt Fund](https://discovermf.com/funds/mirae-asset-banking-and-psu-debt-fund-148416.md) | +3.1% | +6.2% | +5.4% | 1.3% | 0.82% | ₹38.3 cr |
| [Canara Robeco Banking and PSU Debt Fund](https://discovermf.com/funds/canara-robeco-banking-and-psu-debt-fund-150503.md) | +3.0% | +6.0% | — | 1.3% | 0.70% | ₹157 cr |
| [Bajaj Finserv Banking and PSU Debt Fund](https://discovermf.com/funds/bajaj-finserv-banking-and-psu-debt-fund-152165.md) | +3.3% | — | — | 1.3% | 0.89% | ₹305 cr |

## Questions

### How many Banking and PSU Debt funds are there?

20 funds, managing ₹75,829 cr between them as of 3 Nov 2026. The largest is Bandhan Banking and PSU Debt Fund, at ₹11,857 cr.

### What return have Banking and PSU Debt funds given?

The average Banking and PSU Debt fund returned +3.8% over the last year, +6.5% a year over three years, +5.8% a year over five years. Over the last year the funds ranged from +2.8% to +5.5%. Past returns do not tell you future returns.

### Which Banking and PSU Debt fund has the lowest expense ratio?

Sundaram Banking and PSU Debt Fund, at 0.42% a year, against 0.69% for the average fund in the category. The expense ratio is taken out of the fund every day, so every return shown is already after it.

### Which Banking and PSU Debt fund has the highest three-year return?

UTI Banking & PSU Debt Fund, at +7.2% a year over the last three years, against +6.5% for the average fund. Past returns do not tell you future returns.

### How risky are Banking and PSU Debt funds?

Their volatility over the last year averaged 1.3%: the higher it is, the more the price swings from day to day. 14 of 20 carry the riskometer level Moderate, on SEBI's six-step scale from Low to Very High.