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This Banking & PSU Fund Has Given Over 8% SIP Returns In 3-Year, Outperformed Benchmark

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If you're searching for a generally safe debt fund to invest in, look into banking and public sector debt funds. These funds must invest at least 80% of their assets in debt securities issued by banks, public sector firms, and public financial institutions. Because they only invest in banks and PSUs, these funds are relatively safe. They don't have credit risk because they're backed or owned by the government. Here, we have highlighted one such fund. Edelweiss Banking And PSU Debt Fund is one fund, this fund has given the highest on 3-Year SIP. Check the details to know more!

 

Edelweiss Banking and PSU Debt Fund - Direct Plan-Growth

Edelweiss Banking and PSU Debt Fund - Direct Plan-Growth

This Banking and PSU fund from Edelweiss Mutual Fund is an 8 Year 8 month old fund launched on 13th September 2013. The fund is a medium-sized fund of its category.

The Asset Under Management (AUM) of this fund is Rs 426.23 crore. Whereas, the Net Asset Value (NAV) as on 24th May 2022 is Rs 20.0864. The fund has an expense ratio of 0.34%, which is high compared to its category average of 0.29%. 

This fund is rated moderate risky for investments. Also, the fund is rated 3-star by the rating agency CRISIL. However, it has given average performance among peer funds. The investment in this starts at Rs 5,000, the minimum required amount. For Sip it is Rs 500, and for additional investment, it is Rs 500 as well. There is no lock-in period in this fund. Its exit charge is Rs 0. The fund's benchmark is NIFTY banking and PSU Debt Index.

It is an open-ended debt scheme predominantly investing in Debt instruments of banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds. Investment in this fund gives exposure to quality Bonds of banks, Public Sector Undertakings (PSUs), and municipal corporations. The fund is suitable for 3-5 year investment period. 

Absolute & Annualised Returns
 

Absolute & Annualised Returns

Lump-Sum Investment Returns

Since its launch, it has delivered 8.34% average annual returns. 

TenureAbsolute ReturnsAnnualised Returns
1 Year1.60%1.59%
2 Year9.05%4.42%
3 Year26.49%8.14%
5 Year45.32%7.76%
Since Inception100.67%8.34%


SIP Returns

It has given negative returns in 1-year SIP.

TenureAbsolute ReturnsAnnualised Returns
1 Year-0.48%-0.96%
2 Year2.29%2.29%
3 Year7.58%4.93%
5 Year19.33%7.10%
Portfolio

Portfolio

The fund has a debt investment of 92.27 percent, with 8.02 percent in government securities and 84.25 percent in very low-risk securities.

The fund's credit record is excellent, indicating that it has lent to borrowers of high quality. Because the majority of funds in this category lend to better borrowers, the risk of default is higher than in the category.

The Government of India, Housing & Urban Development Corp. Ltd. (HDFC Ltd), National Bank For Agriculture & Rural Development, Indian Oil Corp. Ltd., and Indian Railway Finance Corp. Ltd. are among the fund's top holdings.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.

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