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Best Banking And PSU Debt Funds in 2025

What are Debt: Banking And PSU funds?


Funds Included All Fund Returns
(3Y annualised)		 Top 5 fund Returns
(3Y annualised)
22 7.65% 7.85%

This fund category is an example of Debt Scheme funds.

Debt funds invest primarily in fixed-income securities such as government bonds, corporate bonds, debentures, treasury bills, and money market instruments. They aim to provide steady income and capital preservation with lower volatility compared to equity funds. Depending on portfolio maturity and credit quality, debt funds range from liquid and short-duration funds to gilt and dynamic bond funds. Suitable for investors with moderate to low risk appetite seeking regular income.

Trailing returns for Debt: Banking And PSU funds

These are average returns over the indicated period.

Monthly trailing returns:
Nov-2025Oct-2025Sep-2025Aug-2025Jul-2025Jun-2025
0.35%0.79%0.63%-0.09%0.58%0.02%

Quarterly trailing returns:
2025Q42025Q32025Q22025Q12024Q42024Q3
1.14%1.12%2.57%2.32%1.58%2.50%

Yearly trailing returns:
202520242023202220212020
7.34%8.14%6.97%3.70%3.74%10.20%

Rolling returns for Debt: Banking And PSU funds

SIP
10% Step-up SIP
Lump sum
SWP
10% Step-up SWP
Metric Any 1Y SIPAny 2Y SIPAny 3Y SIPAny 5Y SIPAny 7Y SIPAny 10Y SIP
Minimum2.82%5.75%5.65%6.13%6.61%7.08%
Median7.58%7.79%7.77%7.13%7.13%7.17%
Maximum12.42%9.5%9.64%8.56%7.71%7.22%
Risk2.01%0.86%0.97%0.67%0.33%0.04%
Sharpe Ratio29.03%91.64%79.96%18.6%41.06%429.63%
Data as of 14-Dec-2025
Metric Any 1Y SIPAny 2Y 目↑ SIPAny 3Y 目↑ SIPAny 5Y 目↑ SIPAny 7Y 目↑ SIPAny 10Y 目↑ SIP
Minimum2.82%7.64%7.72%7.16%7.04%7.15%
Median7.58%7.98%7.92%7.27%7.13%7.21%
Maximum12.42%8.22%8.02%7.32%7.18%7.24%
Risk2.01%0.18%0.1%0.05%0.04%0.03%
Sharpe Ratio29.03%550.0%941.03%530.68%300.0%695.24%
Data as of 14-Dec-2025
Metric Any 1YAny 2YAny 3YAny 5YAny 7YAny 10Y
Minimum3.67%6.41%6.01%6.1%7.17%7.47%
Median7.77%7.98%7.74%6.96%7.59%7.54%
Maximum11.36%9.15%8.97%8.0%8.0%7.6%
Risk1.81%0.68%0.75%0.56%0.24%0.03%
Sharpe Ratio42.51%145.32%98.6%-7.35%246.24%1647.83%
Data as of 14-Dec-2025
Metric Any 1Y SWPAny 2Y SWPAny 3Y SWPAny 5Y SWPAny 7Y SWPAny 10Y SWP
Minimum2.9%6.36%5.3%5.46%7.64%7.86%
Median7.89%8.18%7.59%7.06%8.14%8.02%
Maximum12.86%9.57%9.21%8.08%8.57%8.15%
Risk2.14%0.78%1.01%0.79%0.23%0.08%
Sharpe Ratio41.56%151.93%58.89%8.01%502.36%1214.53%
Data as of 14-Dec-2025
Metric Any 1Y SWPAny 2Y 目↑ SWPAny 3Y 目↑ SWPAny 5Y 目↑ SWPAny 7Y 目↑ SWPAny 10Y 目↑ SWP
Minimum2.9%8.43%7.51%5.14%7.68%7.67%
Median7.89%8.53%7.56%5.2%7.75%7.69%
Maximum12.86%8.65%7.62%5.25%7.82%7.71%
Risk2.14%0.06%0.03%0.03%0.05%0.01%
Sharpe Ratio41.56%2727.97%1915.25%-5572.73%1651.47%6031.25%
Data as of 14-Dec-2025

Fundwise SIP, Lumpsum and SWP returns


Rolling SIP returns (less than 1 year)
Fund Any 1M SIPAny 3M SIPAny 6M SIP
Bajaj Finserv Banking And PSU Fund8.67%7.78%8.38%
Edelweiss Banking And PSU Debt Fund5.4%6.84%5.19%
Trustmf Banking PSU Fund5.75%6.94%6.04%
Aditya Birla Sun Life Banking PSU Debt Fund5.27%7.25%5.63%
Invesco India Banking And PSU Fund5.67%6.88%5.43%
Mirae Asset Banking And PSU Fund5.07%6.76%5.25%
Kotak Banking And PSU Debt Fund9.58%9.53%6.86%
Canara Robeco Banking And PSU Debt Fund5.35%7.24%5.86%
UTI Banking PSU Fund6.06%6.74%6.16%
Bandhan Banking And PSU Fund5.68%6.51%5.54%
SBI Banking PSU Fund5.29%7.41%5.91%
ITI Banking PSU Debt Fund5.08%6.07%5.68%
Franklin India Banking PSU Debt Fund6.41%8.23%6.98%
LIC MF Banking PSU Fund5.12%6.86%5.49%
Sundaram Banking PSU Fund5.43%7.07%5.9%
Sundaram Banking PSU Fund1.96%3.07%5.53%
Axis Banking PSU Debt Fund6.39%7.42%6.11%
HSBC Banking And PSU Debt Fund7.0%7.59%6.27%
DSP Banking PSU Debt Fund4.52%6.59%4.95%
HDFC Banking And PSU Debt Fund6.21%8.0%6.09%
Nippon India Banking And PSU Fund5.66%7.54%5.69%
ICICI Prudential Banking And PSU Debt Fund8.18%8.31%6.63%
Data as of 14-Dec-2025

Note: Returns for less than one year are annualised. However, given the nature of the calculation, XIRR for such periods are not meaningful.

Rolling SIP returns (1 year or more):

Fund Any 1Y SIPAny 3Y SIPAny 5Y SIP
Bajaj Finserv Banking And PSU Fund8.23%0%0%
Edelweiss Banking And PSU Debt Fund7.08%7.95%7.21%
Trustmf Banking PSU Fund7.37%7.93%0%
Aditya Birla Sun Life Banking PSU Debt Fund8.56%7.99%7.25%
Invesco India Banking And PSU Fund7.4%7.43%7.23%
Mirae Asset Banking And PSU Fund4.37%7.78%6.96%
Kotak Banking And PSU Debt Fund8.52%8.28%7.49%
Canara Robeco Banking And PSU Debt Fund6.63%7.42%0%
UTI Banking PSU Fund8.03%7.04%5.58%
Bandhan Banking And PSU Fund7.97%7.79%7.78%
SBI Banking PSU Fund7.53%8.09%7.16%
ITI Banking PSU Debt Fund4.93%7.73%7.16%
Franklin India Banking PSU Debt Fund7.81%7.95%7.01%
LIC MF Banking PSU Fund7.56%8.09%7.17%
Sundaram Banking PSU Fund7.92%7.35%6.98%
Sundaram Banking PSU Fund9.26%0%0%
Axis Banking PSU Debt Fund7.69%7.85%7.06%
HSBC Banking And PSU Debt Fund7.7%7.83%0%
DSP Banking PSU Debt Fund8.2%7.56%7.07%
HDFC Banking And PSU Debt Fund7.93%8.09%7.3%
Nippon India Banking And PSU Fund7.66%7.24%6.73%
ICICI Prudential Banking And PSU Debt Fund8.48%8.09%7.99%
Data as of 14-Dec-2025
SIP Calculator


Rolling Lumpsum returns
Fund Any 1YAny 3YAny 5Y
Bajaj Finserv Banking And PSU Fund8.55%0%0%
Edelweiss Banking And PSU Debt Fund7.84%7.76%6.22%
Trustmf Banking PSU Fund7.92%7.72%0%
Aditya Birla Sun Life Banking PSU Debt Fund9.32%7.84%6.26%
Invesco India Banking And PSU Fund7.51%7.67%7.65%
Mirae Asset Banking And PSU Fund4.03%7.64%5.92%
Kotak Banking And PSU Debt Fund8.68%7.99%6.48%
Canara Robeco Banking And PSU Debt Fund6.58%7.28%0%
UTI Banking PSU Fund8.16%6.94%5.94%
Bandhan Banking And PSU Fund8.24%8.15%7.98%
SBI Banking PSU Fund8.12%7.9%7.04%
ITI Banking PSU Debt Fund4.88%7.63%6.33%
Franklin India Banking PSU Debt Fund8.12%7.9%7.47%
LIC MF Banking PSU Fund8.14%7.89%6.86%
Sundaram Banking PSU Fund7.86%7.57%7.5%
Sundaram Banking PSU Fund8.71%0%0%
Axis Banking PSU Debt Fund8.33%7.61%6.07%
HSBC Banking And PSU Debt Fund7.65%7.56%0%
DSP Banking PSU Debt Fund7.78%7.79%7.28%
HDFC Banking And PSU Debt Fund8.14%7.92%7.15%
Nippon India Banking And PSU Fund7.7%7.72%7.56%
ICICI Prudential Banking And PSU Debt Fund8.63%8.3%8.59%
Data as of 14-Dec-2025

Rolling SWP returns
Fund Any 1Y SWPAny 3Y SWPAny 5Y SWP
Bajaj Finserv Banking And PSU Fund8.9%0%0%
Edelweiss Banking And PSU Debt Fund8.59%7.53%5.12%
Trustmf Banking PSU Fund7.19%6.95%0%
Aditya Birla Sun Life Banking PSU Debt Fund9.26%7.68%5.2%
Invesco India Banking And PSU Fund7.56%7.61%7.63%
Mirae Asset Banking And PSU Fund3.78%7.48%4.78%
Kotak Banking And PSU Debt Fund8.88%7.68%5.36%
Canara Robeco Banking And PSU Debt Fund6.78%7.1%0%
UTI Banking PSU Fund7.59%6.81%6.81%
Bandhan Banking And PSU Fund8.15%8.26%8.05%
SBI Banking PSU Fund8.7%7.64%8.33%
ITI Banking PSU Debt Fund4.63%7.53%5.42%
Franklin India Banking PSU Debt Fund7.88%7.83%8.3%
LIC MF Banking PSU Fund8.8%7.7%7.37%
Sundaram Banking PSU Fund7.86%7.57%7.49%
Sundaram Banking PSU Fund8.3%0%0%
Axis Banking PSU Debt Fund8.66%7.29%7.4%
HSBC Banking And PSU Debt Fund7.71%7.25%0%
DSP Banking PSU Debt Fund8.55%7.7%8.15%
HDFC Banking And PSU Debt Fund8.67%7.79%7.79%
Nippon India Banking And PSU Fund8.51%7.43%7.98%
ICICI Prudential Banking And PSU Debt Fund8.61%9.06%8.89%
Data as of 14-Dec-2025

SIP and SWP returns with step-up


Rolling SIP returns with 10% step-up
Fund Any 1Y SIPAny 3Y 目↑ SIPAny 5Y 目↑ SIP
Bajaj Finserv Banking And PSU Fund8.23%0%0%
Edelweiss Banking And PSU Debt Fund7.08%7.94%7.27%
Trustmf Banking PSU Fund7.37%7.91%0%
Aditya Birla Sun Life Banking PSU Debt Fund8.56%7.98%7.31%
Invesco India Banking And PSU Fund7.4%7.92%6.97%
Mirae Asset Banking And PSU Fund4.37%7.77%7.03%
Kotak Banking And PSU Debt Fund8.52%8.28%7.55%
Canara Robeco Banking And PSU Debt Fund6.63%7.42%0%
UTI Banking PSU Fund8.03%7.92%7.93%
Bandhan Banking And PSU Fund7.97%7.64%7.01%
SBI Banking PSU Fund7.53%8.04%7.21%
ITI Banking PSU Debt Fund4.93%7.72%7.2%
Franklin India Banking PSU Debt Fund7.81%8.14%7.33%
LIC MF Banking PSU Fund7.56%8.1%7.3%
Sundaram Banking PSU Fund7.92%7.91%7.06%
Sundaram Banking PSU Fund9.26%0%0%
Axis Banking PSU Debt Fund7.69%7.86%7.13%
HSBC Banking And PSU Debt Fund7.7%7.83%0%
DSP Banking PSU Debt Fund8.2%7.76%7.1%
HDFC Banking And PSU Debt Fund7.93%8.07%7.36%
Nippon India Banking And PSU Fund7.66%8.02%7.32%
ICICI Prudential Banking And PSU Debt Fund8.48%8.12%7.59%
Data as of 14-Dec-2025

Rolling SWP returns with 10% step-up
Fund Any 1Y SWPAny 3Y 目↑ SWPAny 5Y 目↑ SWP
Bajaj Finserv Banking And PSU Fund8.9%0%0%
Edelweiss Banking And PSU Debt Fund8.59%7.56%5.22%
Trustmf Banking PSU Fund7.19%7.51%0%
Aditya Birla Sun Life Banking PSU Debt Fund9.26%7.7%5.3%
Invesco India Banking And PSU Fund7.56%7.61%4.35%
Mirae Asset Banking And PSU Fund3.78%7.51%4.88%
Kotak Banking And PSU Debt Fund8.88%7.71%5.46%
Canara Robeco Banking And PSU Debt Fund6.78%7.12%0%
UTI Banking PSU Fund7.59%7.43%6.59%
Bandhan Banking And PSU Fund8.15%7.51%5.08%
SBI Banking PSU Fund8.7%7.64%4.75%
ITI Banking PSU Debt Fund4.63%7.55%5.51%
Franklin India Banking PSU Debt Fund7.88%7.59%5.15%
LIC MF Banking PSU Fund8.8%7.66%4.89%
Sundaram Banking PSU Fund7.86%7.48%4.68%
Sundaram Banking PSU Fund8.3%0%0%
Axis Banking PSU Debt Fund8.66%7.3%5.07%
HSBC Banking And PSU Debt Fund7.71%7.27%0%
DSP Banking PSU Debt Fund8.55%7.72%4.94%
HDFC Banking And PSU Debt Fund8.67%7.77%5.34%
Nippon India Banking And PSU Fund8.51%7.77%5.32%
ICICI Prudential Banking And PSU Debt Fund8.61%7.89%5.82%
Data as of 14-Dec-2025

Note:N.A. in returns indicate that the fund does not have sufficient history.

Tables have been updated on 14-Dec-2025

How are Debt: Banking And PSU funds taxed on selling?

Debt Funds
Tax for FY2025-26		 STCG Rate LTCG Eligibility LTCG Rate
Bought Before
1 Apr 2023		 Slab After 2Y 12.5%
Bought After
31 Mar 2023		 Slab Always STCG Slab

Note:

  • Dividends from mutual funds (called IDCW or Income Distribution cum Capital Withdrawal funds), are added to the income of the investor and taxed at their highest applicable (slab) rate.
  • Cess and surcharge (if applicable) is to be applied to taxes from mutual funds from selling and dividends.
  • Switches, SWP and selling any lump sum amount are taxable as per the table above.

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Disclaimer: Mutual fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.

Note: NAVs and returns updated on 14-Dec-2025.

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