These 4 Banking And PSU Funds Poured Over 21% Returns In 5 Years; Check Returns

Banking and PSU Debt funds are quite popular, with many investors opting to invest in them. But, with so many debt fund alternatives, do you really need this category in your portfolio? Should you put money into this market?

Should You Invest In Banking And PSU Mutual Funds?

Money market instruments issued by banks, PSUs , and other public financial institutions must account for at least 80% of the assets of funds in this category. The default credit risk is significantly decreased because these businesses are either supported by the government or carefully controlled. As a consequence, this group is widely seen as relatively risk-free.

 
If you plan on investing for at least 2-3 years or longer, this category is ideal. However, it will ultimately be determined by your risk appetite, time horizon, and any current debt components in your portfolio. When this category is paired with plans from other debt fund categories, things may vary for each investor.

These 4 Banking and PSU Mutual funds are top-performing funds in their category in terms of 5-year SIP returns

Absolute and Annualised Returns

Banking And PSU Mutual Funds	1-Year	2-Year	3-Year	5-Year	Since Inception
Edelweiss Banking and PSU Debt Fund - Direct Plan - Growth	7.44%	6.76%	9.73%	8.54%	8.79%
Nippon India Banking & PSU Debt Fund - Direct Plan - Growth	5.49%	6.85%	8.51%	7.99%	8.25%
IDFC Banking & PSU Debt Fund - Direct Plan - Growth	4.64%	6.53%	8.31%	7.81%	8.18%
Kotak Banking and PSU Debt Fund - Direct Plan - Growth	5.40%	6.65%	8.30%	7.98%	8.59%

Source - Money Control

SIP Returns

Banking And PSU Mutual Funds	1-Year	2-Year	3-Year	5-Year
Edelweiss Banking and PSU Debt Fund - Direct Plan - Growth	2.49%	5.78%	11.86%	23.85%
Nippon India Banking & PSU Debt Fund - Direct Plan - Growth	2.25%	5.45%	10.66%	21.37%
IDFC Banking & PSU Debt Fund - Direct Plan - Growth	1.94%	4.97%	10.08%	21.20%
Kotak Banking and PSU Debt Fund - Direct Plan - Growth	2.34%	5.49%	10.48%	21.15%

Source- Money Control

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.