This Less Than 2-Years Old Banking And PSU Debt Fund Has Given 4% Returns In 1-Year

Banking and PSUs Debt funds are a popular debt mutual fund category for many mutual fund investors. Money market instruments issued by banks, PSUs, and other public financial institutions (PFIs) must account for at least 80% of the assets of funds in this category. Here, in this article, we have analyzed one such newly launched fund, less than 2-years. The fund has given good returns since its inception. Check out the details to know more.

ITI Banking & PSU Debt Fund - Direct Plan-Growth

This Banking and PSU Debt Fund was launched on 23rd October 2020 by the ITI Mutual Fund. It is an open-ended small-sized fund of its category. It ahs worth Rs 22.35 Crore of Assets Under Management. The Net Asset Value of this Fund declared on 05th May 2022 is Rs 10.6655. The fund has an expense ratio of 0.17%, which is close but below its category average of 0.29%.

The fund is a low to moderate risk on risk level, however, it still, posses risk. The benchmark of this fund is CRISIL Banking PSU Debt. To start investing in this fund, the minimum amount required is Rs 5,000 for a lump-sum payment, whereas, the minimum additional investment amount is 1000. For SIP it is Rs 500. The Lock-in period is not applicable in this fund, also, the exit load is Rs 0. 

Absolute And Annualised Returns

Lump-Sum Investment Returns

Since its inception, it has delivered 4.27% average annual returns.

Tenure	Absolute Returns	Annualised Returns
1 Year	4.00%	4.00%
Since Inception	6.65%	4.27%

SIP Returns

Tenure	Absolute Returns	Annualised Returns
1 Year	1.85%	3.47%

Portfolio

The fund has a debt investment of 58.92 per cent, with 58.92 per cent of it invested in extremely low-risk assets. The fund's credit profile is moderate, indicating that it has loaned to high-quality borrowers. Because most funds in this category lend to better borrowers, the risk of default is higher than the category average. The fund's top holdings are in Indian Oil Corp., Indian Railway Finance Corp., Bank Of Baroda, National Bank For Agriculture & Rural Development Small Industries Development Program, Ltd. and Bank of India Ltd.

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.