The below table shows the Top PSU Mutual Funds based on AUM, NAV, and minimum SIP.
| Name | AUM (Cr) | Minimum SIP (Rs) | NAV (Rs) |
| Bandhan Banking & PSU Debt Fund | 14537.15 | 100.0 | 22.63 |
| Axis Banking & PSU Debt Fund | 14138.47 | 100.0 | 2423.67 |
| Aditya Birla SL Banking & PSU Debt | 9549.92 | 1000.0 | 338.99 |
| ICICI Pru Banking & PSU Debt Fund | 8268.7 | 100.0 | 30.38 |
| HDFC Banking and PSU Debt Fund | 6155.06 | 1500.0 | 21.32 |
| Kotak Banking and PSU Debt Fund | 5981.55 | 100.0 | 60.63 |
| Nippon India Banking & PSU Debt Fund | 5298.01 | 100.0 | 19.17 |
| HSBC Banking and PSU Debt Fund | 4498.05 | 500.0 | 22.83 |
| SBI Banking and PSU Fund | 4413.24 | 1000.0 | 2947.65 |
| DSP Banking & PSU Debt Fund | 2398.0 | 100.0 | 22.19 |
A PSU (Public Sector Undertaking) mutual fund is a type of mutual fund that primarily invests in securities and bonds issued by government-owned public sector companies in India. These funds are considered low-risk investments because they are backed by the Indian government and are popular among investors seeking stable returns with low volatility.
Content:
- PSU Fund
- Top PSU Mutual Funds
- Best PSU Equity Mutual Fund India
- PSU Mutual Fund List
- PSU Mutual Fund
- Top PSU Mutual Funds – FAQ
- Introduction to Top PSU Mutual Funds
PSU Fund
The table below shows the PSU Fund based on the lowest to highest expense ratio.
| Name | Expense Ratio % |
| ITI Banking & PSU Debt Fund | 0.15 |
| Franklin India Banking & PSU Debt Fund | 0.19 |
| TRUSTMF Banking & PSU Fund | 0.21 |
| Sundaram Banking & PSU Debt Fund | 0.23 |
| HSBC Banking and PSU Debt Fund | 0.23 |
| UTI Banking & PSU Fund | 0.24 |
| Tata Banking & PSU Debt Fund | 0.25 |
| Invesco India Banking and PSU Fund | 0.28 |
| LIC MF Banking & PSU Debt Fund | 0.28 |
| DSP Banking & PSU Debt Fund | 0.32 |
Top PSU Mutual Funds
The table below shows the Top PSU Mutual Funds based on the Highest 5Y CAGR.
| Name | CAGR 5Y (Cr) |
| Invesco India PSU Equity Fund | 28.53 |
| SBI PSU Fund | 26.3 |
| Edelweiss Banking and PSU Debt Fund | 8.25 |
| Nippon India Banking & PSU Debt Fund | 7.61 |
| Kotak Banking and PSU Debt Fund | 7.6 |
| Bandhan Banking & PSU Debt Fund | 7.55 |
| ICICI Pru Banking & PSU Debt Fund | 7.53 |
| HDFC Banking and PSU Debt Fund | 7.44 |
| Aditya Birla SL Banking & PSU Debt | 7.4 |
| Franklin India Banking & PSU Debt Fund | 7.19 |
Best PSU Equity Mutual Fund India
The table below shows Best PSU Equity Mutual Fund India based on exit load i.e the fee that the AMC charges investors when exiting or redeeming their fund units.
| Name | Exit Load % | AMC |
| DSP Banking & PSU Debt Fund | 0.0 | DSP Investment Managers Private Limited |
| Mirae Asset Banking and PSU Fund | 0.0 | Mirae Asset Investment Managers (India) Private Limited |
| Bajaj Finserv Banking and PSU Fund | 0.0 | Bajaj Finserv Asset Management Limited |
| Invesco India Banking and PSU Fund | 0.0 | Invesco Asset Management Company Pvt Ltd. |
| Tata Banking & PSU Debt Fund | 0.0 | Tata Asset Management Private Limited |
| Edelweiss Banking and PSU Debt Fund | 0.0 | Edelweiss Asset Management Limited |
| TRUSTMF Banking & PSU Fund | 0.0 | Trust Asset Management Private Limited |
| Sundaram Banking & PSU Debt Fund | 0.0 | Sundaram Asset Management Company Limited |
| Canara Rob Banking and PSU Debt Fund | 0.0 | Canara Robeco Asset Management Company Limited |
| Franklin India Banking & PSU Debt Fund | 0.0 | Franklin Templeton Asset Management (India) Private Limited |
PSU Mutual Fund List
The table below shows the PSU Mutual Fund List based on Absolute 1 Year Return and AMC.
| Name | AMC | Absolute Returns – 1Y % |
| Aditya Birla SL PSU Equity Fund | Aditya Birla Sun Life AMC Limited | 99.01 |
| SBI PSU Fund | SBI Funds Management Limited | 93.0 |
| Invesco India PSU Equity Fund | Invesco Asset Management Company Pvt Ltd. | 85.51 |
| ICICI Pru PSU Equity Fund | ICICI Prudential Asset Management Company Limited | 83.83 |
| ICICI Pru Banking & PSU Debt Fund | ICICI Prudential Asset Management Company Limited | 7.96 |
| Kotak Banking and PSU Debt Fund | Kotak Mahindra Asset Management Company Limited | 7.82 |
| DSP Banking & PSU Debt Fund | DSP Investment Managers Private Limited | 7.67 |
| HDFC Banking and PSU Debt Fund | HDFC Asset Management Company Limited | 7.62 |
| Nippon India Banking & PSU Debt Fund | Nippon Life India Asset Management Limited | 7.6 |
| Aditya Birla SL Banking & PSU Debt | Aditya Birla Sun Life AMC Limited | 7.54 |
PSU Mutual Fund
The table below shows PSU Mutual Fund based on Absolute 6-month Return and AMC.
| Name | AMC | Absolute Returns – 6M % |
| Aditya Birla SL PSU Equity Fund | Aditya Birla Sun Life AMC Limited | 63.28 |
| SBI PSU Fund | SBI Funds Management Limited | 57.99 |
| ICICI Pru PSU Equity Fund | ICICI Prudential Asset Management Company Limited | 51.54 |
| Invesco India PSU Equity Fund | Invesco Asset Management Company Pvt Ltd. | 47.1 |
| ITI Banking & PSU Debt Fund | ITI Asset Management Limited | 3.92 |
| Invesco India Banking and PSU Fund | Invesco Asset Management Company Pvt Ltd. | 3.81 |
| Baroda BNP Paribas Banking and PSU Bond Fund | Baroda BNP Paribas Asset Management India Pvt. Ltd. | 3.81 |
| Kotak Banking and PSU Debt Fund | Kotak Mahindra Asset Management Company Limited | 3.73 |
| DSP Banking & PSU Debt Fund | DSP Investment Managers Private Limited | 3.71 |
| ICICI Pru Banking & PSU Debt Fund | ICICI Prudential Asset Management Company Limited | 3.63 |
Looking for the Best Stocks in different sectors? Check out the following articles:
Top PSU Mutual Funds – FAQ
What are the Best PSU Mutual Funds?
Best PSU Mutual Funds #1: ITI Banking & PSU Debt Fund
Best PSU Mutual Funds #2: Franklin India Banking & PSU Debt Fund
Best PSU Mutual Funds #3: TRUSTMF Banking & PSU Fund
Best PSU Mutual Funds #4: Sundaram Banking & PSU Debt Fund
Best PSU Mutual Funds #5: HSBC Banking and PSU Debt Fund
These funds are listed based on the Highest AUM.
What are the Top PSU Mutual Funds?
The top 5 PSU Mutual Funds, determined by their 5-year Compound Annual Growth Rate (CSGR), include Invesco India PSU Equity Fund, SBI PSU Fund, Edelweiss Banking and PSU Debt Fund, Nippon India Banking & PSU Debt Fund and Kotak Banking and PSU Debt Fund.
What is a PSU mutual fund?
A PSU (Public Sector Undertaking) mutual fund in India primarily invests in securities issued by government-owned companies or PSUs, offering stability and government backing.
Is it good to invest in a PSU fund?
Investing in a PSU (Public Sector Undertaking) fund can be a relatively stable option with government-backed companies, making it suitable for conservative investors seeking lower risk.
Are banking and PSU funds safe?
Banking and PSU funds are generally considered safe investment options as they primarily invest in debt securities of government entities and highly-rated banks, reducing credit risk. However, they carry some interest rate risk.
Introduction to Top PSU Mutual Funds
Top PSU Mutual Funds – AUM, NAV
Bandhan Banking & PSU Debt Fund
Bandhan Banking & PSU Debt Fund is a mutual fund scheme focused on the banking and PSU sector offered by Bandhan Mutual Fund. This fund has a record of 10 years and 11 months, and it was initiated on February 26, 2013.
The Bandhan Banking & PSU Debt Fund does not have an exit load and boasts an expense ratio of 0.33%. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 7.55%. Moreover, it manages a significant amount of assets, with its Assets Under Management (AUM) totaling ₹ 14537.15 crore, and it carries a moderate level of risk.
The distribution of holdings reveals that 1.98% is in commercial paper, 5.42% in cash and equivalents, 5.78% in certificates of deposit, 17.14% in government securities, and the majority, 69.43%, is in corporate debt.
Axis Banking & PSU Debt Fund
Axis Banking & PSU Debt Direct Fund is a debt mutual fund scheme offered by Axis Mutual Fund. The fund is overseen by its fund managers, Aditya Pagaria and Hardik Shah.
The Axis Banking & PSU Debt Fund does not have an exit load and maintains an expense ratio of 0.33%. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 7.08%. Additionally, it manages a substantial amount of assets, with its Assets Under Management (AUM) totaling ₹ 14138.47 crore, and it carries a moderate level of risk.
Aditya Birla SL Banking & PSU Debt
Aditya Birla Sun Life Banking & PSU Debt Fund Direct-Growth is a debt mutual fund scheme offered by Aditya Birla Sun Life Mutual Fund. It is overseen by its fund managers, Kaustubh Gupta and Harshil Suvarnkar.
The Aditya Birla SL Banking & PSU Debt Fund does not have an exit load, and it maintains an expense ratio of 0.38%. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 7.4%. Furthermore, it manages a substantial amount of assets, with its Assets Under Management (AUM) totaling ₹ 9549.92 crore, and it carries a moderate level of risk.
The allocation of holdings shows that 0.52% is in floating-rate debt, 3.23% in cash and equivalents, 13.30% in certificates of deposit, 25.49% in government securities, and the majority, 56.57%, is in corporate debt.
PSU Fund – Expense Ratio
ITI Banking & PSU Debt Fund
ITI Banking and PSU Fund is a debt mutual fund scheme provided by ITI Mutual Fund and is presently overseen by its fund manager, Vikrant Mehta.
The ITI Banking & PSU Debt Fund doesn’t have an exit load and maintains an expense ratio of 0.15%. The fund manages a moderate amount of assets, with its Assets Under Management (AUM) totaling ₹ 30.36 crore, and it carries a moderate level of risk.
The distribution of investments in the shareholding pattern indicates that the fund has allocated 9.22% to certificate of deposit, 11.06% to cash and equivalents, 17.85% to government securities, and the majority, 61.61%, to corporate debt securities.
Franklin India Banking & PSU Debt Fund
Franklin India Banking & PSU Debt Fund is a mutual fund scheme specializing in banking and PSU investments offered by Franklin Templeton Mutual Fund. This fund has a track record of 9 years and 10 months since its inception on April 2, 2014.
The Franklin India Banking & PSU Debt Fund does not impose an exit load and maintains an expense ratio of 0.19%. Over the past 5 years, it has shown a Compound Annual Growth Rate (CAGR) of 7.19%. Additionally, the fund manages a considerable amount of assets, with its Assets Under Management (AUM) totaling ₹ 642.72 crore, and it carries a moderately low level of risk.
In the shareholding pattern, the fund’s allocation is divided as follows: 1.85% in cash and equivalents, 11.24% in certificate of deposit, 11.85% in government securities, and the majority, 74.79%, in corporate debt securities.
TRUSTMF Banking & PSU Fund
TRUSTMF Banking & PSU Fund is a mutual fund scheme focusing on the banking and PSU sector offered by Trust Mutual Fund. It has been operational for 3 years, commencing its launch on January 15, 2021.
The TRUSTMF Banking & PSU Fund does not have an exit load and maintains an expense ratio of 0.21%. Furthermore, the fund manages relatively low assets, with its Assets Under Management (AUM) totaling ₹ 340.82 crores and carrying a moderately low-risk level.
The shareholding pattern shows that the fund has allocated 3.26% to cash and equivalents, 11.88% to government securities, 36.12% to corporate debt, and the largest portion, 48.08%, to certificate of deposit holdings.
Top PSU Mutual Funds – 5Y CAGR
Invesco India PSU Equity Fund
The Invesco India PSU Equity Fund Direct-Growth is a thematic PSU mutual fund offered by Invesco Mutual Fund. This fund has a history of 11 years since its launch on January 1, 2013.
The Invesco India PSU Equity Fund carries an exit load of 1.0% and has an expense ratio of 1.06%. Over a 5-year period, it has shown a Compound Annual Growth Rate (CAGR) of 28.53%. Additionally, the fund manages a substantial amount of assets, with its Assets Under Management (AUM) totaling ₹ 697.29 crore, and it’s essential to highlight that it involves a very high level of risk.
The distribution of holdings indicates that 5.34% of the holdings are in cash and equivalents, while the remaining 94.66% are in the form of equity.
SBI PSU Fund
The SBI Banking and PSU Fund Direct-Growth is a mutual fund scheme specializing in the banking and public sector units (PSU) sector, offered by SBI Mutual Fund. It has a track record of 11 years, launched on January 1, 2013.
The SBI PSU Fund imposes an exit load of 0.5% and has an expense ratio of 1.1%. Over the past 5 years, it has shown a Compound Annual Growth Rate (CAGR) of 26.3%. Furthermore, the fund manages significant assets, with its Assets Under Management (AUM) totaling ₹ 1158.87 crores and carrying a very high-risk level.
The breakdown of shareholding indicates that 3.07% of the portfolio is in cash and equivalents, while the remaining 96.93% consists of equity holdings.
Edelweiss Banking and PSU Debt Fund
Edelweiss Banking and PSU Debt Fund Direct-Growth is a mutual fund scheme in the Banking and PSU category offered by Edelweiss Mutual Fund. This fund has a history of 10 years and 5 months, having been introduced on August 26, 2013.
The Edelweiss Banking and PSU Debt Fund has no exit load and an expense ratio of 0.39%. Over the past 5 years, it has demonstrated a Compound Annual Growth Rate (CAGR) of 8.25%. Additionally, the fund manages assets totaling ₹ 298.17 crore and is associated with a moderate level of risk.
The distribution of holdings in the shareholding pattern shows that 3.44% is in cash and equivalents, 15.07% is in government securities, and the majority, 81.18%, is in corporate debt.
Best PSU Equity Mutual Fund India – Exit Load
DSP Banking & PSU Debt Fund
DSP Banking & PSU Debt Fund Direct-Growth is a mutual fund scheme from DSP Mutual Fund focusing on banking and public sector undertakings (PSUs). This fund has a history of 10 years and 4 months, as it was launched on September 10, 2013, and it is designed for investors seeking opportunities in this sector.
The DSP Banking & PSU Debt Fund has no exit load and maintains a low expense ratio of 0.32%. Over the past 5 years, it has shown a modest Compound Annual Growth Rate (CAGR) of 7.17%. The fund manages assets worth ₹2398.0 crore and carries a moderate level of risk.
The shareholding pattern indicates that the fund’s investments are distributed as follows: 0.31% in cash and equivalents, 22.58% in government securities, and 76.84% in corporate debt securities.
Mirae Asset Banking and PSU Fund
Mirae Asset Banking and PSU Fund, in its direct growth option, is a mutual fund scheme specialized in banking and PSU securities, managed by Mirae Asset Mutual Fund. The fund was launched on the 8th of July, 2020, and has a track record of 3 years and 6 months in operation.
The Mirae Asset Banking and PSU Fund does not impose an exit load, and it maintains a low expense ratio of 0.39%. The fund manages assets totaling ₹70.04 crore and carries a moderate level of risk.
The distribution of investments in the shareholding pattern shows that the fund has allocated 5.94% to cash and equivalents, 12.83% to government securities, and the majority, 80.89%, to corporate debt securities.
Bajaj Finserv Banking and PSU Fund
Bajaj Finserv Banking and PSU Fund is a debt mutual fund scheme offered by Bajaj Finserv Mutual Fund. The fund is presently overseen by fund managers Siddharth Chaudhary and Nimesh Chandan.
The Bajaj Finserv Banking and PSU Fund has no exit load and maintains a low expense ratio of 0.34%. It manages assets totaling ₹93.0 crore and carries a moderate level of risk.
The shareholding pattern for this investment consists of different categories. It includes approximately 1.56% invested in certificates of deposit, around 20.48% in government securities, about 21.69% in cash and equivalents, and the majority, 56.28%, allocated to corporate debt.
PSU Mutual Fund List – Absolute 1 Year Return
Aditya Birla SL PSU Equity Fund
The Aditya Birla Sun Life PSU Equity Fund Direct-Growth is a thematic mutual fund scheme offered by Aditya Birla Sun Life Mutual Fund. It focuses on investing in public sector undertakings (PSUs) and has been active for four years and one month, aiming to deliver growth to investors through investments in PSU-related stocks.
The fund has an exit load of 1.0% and an expense ratio of 0.68%. Additionally, it manages assets totaling ₹ 1936.97 crore and carries a very high level of risk. The distribution of shares in this context is as follows: Cash and equivalents account for 8.85%, while equity makes up the remaining 91.15%.
ICICI Pru PSU Equity Fund
The ICICI Prudential PSU Equity Fund Direct-Growth is a thematic mutual fund scheme focusing on the PSU sector offered by ICICI Prudential Mutual Fund. This fund has a relatively short history, established for one year and five months.
The fund imposes an exit load of 1.0% and has an expense ratio of 0.64%. Furthermore, it manages a significant amount of assets, with its Assets Under Management (AUM) totaling ₹ 1873.86 crore and associated with a very high level of risk.
The distribution of holdings includes 1.60% invested in Treasury Bills, 6.88% in Cash & Equivalents, and the majority, 91.52%, allocated to Equity.
ICICI Pru Banking & PSU Debt Fund
ICICI Prudential Banking & PSU Debt Direct-Growth is a Debt mutual fund scheme offered by ICICI Prudential Mutual Fund. The fund is overseen by its managers, Rohan Maru and Rohit Lakhotia.
ICICI Pru Banking & PSU Debt Fund is another mutual fund option. It comes with an exit load of 0.0 and has an expense ratio of 0.39. Over the past 5 years, it has shown a CAGR of 7.53%, and its assets under management (AUM) currently amount to ₹ 8,268.7 crore. The fund is categorized with a moderate risk level.
The shareholding pattern of this investment includes various components. Approximately 7.04% is held in cash and equivalents, while 8.72% is invested in certificates of deposit. Government securities comprise around 22.05% of the portfolio, and the majority, 61.96%, is allocated to corporate debt.
PSU Mutual Fund – Absolute 6 Month Return
Invesco India Banking and PSU Fund
Invesco India Banking and PSU Fund is a mutual fund scheme in the Banking and PSU category, managed by Invesco Mutual Fund. This fund has a track record of 11 years and 1 month, starting from its launch on January 1, 2013.
The Invesco India Banking and PSU Fund imposes no exit load and has an expense ratio of 0.28%. It is characterized by a moderate risk level, and its Compound Annual Growth Rate (CAGR) over the last 5 years stands at 6.48%. The fund manages assets totaling ₹117.58 crore under its management.
The shareholding pattern indicates a distribution of holdings in this manner: 4.14% in Cash & Equivalents, 19.54% in Government Securities, and the majority, 76.04%, in Corporate Debt.
Baroda BNP Paribas Banking and PSU Bond Fund
The Baroda BNP Paribas Banking & PSU Bond Fund is a debt mutual fund offered by Baroda BNP Paribas Mutual Fund.
The Baroda BNP Paribas Banking and PSU Bond Fund does not have an exit load, and it has an expense ratio of 0.39%. It manages assets totaling ₹ 30.08 crore and carries a moderate level of risk.
The distribution of shareholding in various sectors is as follows: Miscellaneous holds 10.63%, Consumer Finance accounts for 11.31%, Private Banks have a share of 11.67%, Public Banks hold 13.27%, and G-Sec holds the largest portion at 16.69%.
Kotak Banking and PSU Debt Fund
Kotak Banking and PSU Debt Fund is a mutual fund scheme within the Banking and PSU category offered by Kotak Mahindra Mutual Fund. This fund has a history of 11 years and 1 month, initiated on January 1, 2013.
Kotak Banking and PSU Debt Fund has no exit load, an expense ratio of 0.37, a 5-year CAGR of 7.6, and manages assets totaling ₹ 5,981.55 crore, with a risk level categorized as moderate.
The shareholding pattern reveals that 3.51% of the holdings are in Cash & Equivalents, 22.29% in Government Securities, and 73.94% in Corporate Debt.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change over time.
