ICICI Prudential Banking & PSU Debt Fund, the topper in the category, offered 7.32% in 2023. Aditya Birla SL Banking & PSU Debt gave 6.86%. Sundaram Banking & PSU Debt Fund and Franklin India Banking & PSU Debt Fund gave around 6.84%. HDFC Banking and PSU Debt Fund gave 6.83%.
The banking & PSU fund category had an allocation of around 71.62% in AAA papers. The category had an allocation of 18.13% in sovereign papers, and 4.84% in A1 rated papers. The category had 4.16% in cash and cash equivalents. The banking & PSU fund category had a negligible allocation of 1.01% in AA rated papers, and 0.23% in unrated papers.
The banking & PSU fund category had an allocation of around 56.97% in papers that had maturity between one to three years. The category had an allocation of 20.25% in papers that had maturity above five years. Around 10.51% was invested in papers with maturity between three to five years. Around 7.25% was invested in papers that had maturity up to 12 months. Around 5.01% was invested in papers that had no maturity.
According to the Amfi data, the banking & PSU fund category in 2023 witnessed a total inflow of Rs 210.77 crore.
The asset under management of the banking & PSU fund category as on December 31, 2023 stands at Rs 80,160.50 crore. The asset under management of the banking & PSU fund category has surged by 9.20% in 2023, from Rs 73,408.71 crore in January to Rs 80,160.50 crore in December.
Note, the above exercise is not a recommendation. The exercise was done to analyse how the banking & PSU fund category fared in 2023. One should not make investment or redemption decisions based on the above exercise.
If you are looking for recommendations, see:
Best Banking & PSU mutual funds to invest
Banking & PSU mutual fund schemes have the mandate to invest at least 80% of their corpus in debt investments of banks, public sector undertakings, and public financial institutions. If you are looking for relatively safe debt funds to invest, you should check out banking & PSU debt funds. These schemes are recommended to investors with an investment horizon for three years and are aware of the risks associated with these schemes.
