Best Banking & PSU Mutual Funds
Debt funds lend to governments and companies and earn interest. They're generally steadier than equity funds and are used for shorter horizons and stability.
Top banking & PSU mutual funds by 3Y returns
19Direct plan, Growth option — ranked by 3-year CAGR. Open a fund for NAV history, rolling returns, risk metrics and peer rank.
As of 20 Aug 2026, Franklin India Banking & PSU Debt Fund (Direct plan, Growth option) leads banking & PSU mutual funds on 3-year CAGR at +7.61%, followed by Kotak Banking and PSU Debt Fund at +7.53% and ICICI Prudential Banking & PSU Debt Fund at +7.47%. Across 20 banking & PSU mutual funds the category averaged +7.29% over three years, at an average expense ratio of 0.33%. All figures are computed from public AMFI NAV history and recomputed daily; past returns do not predict future ones.
| 1 | Franklin India Banking & PSU Debt Fund Franklin Templeton | ★★★★★ | +6.6% | +7.6% | +6.5% | 0.23% | ₹1.11Cr |
| 2 | Kotak Banking and PSU Debt Fund Kotak Mahindra | ★★★★★ | +5.9% | +7.5% | +6.6% | 0.40% | ₹5,070Cr |
| 3 | ICICI Prudential Banking & PSU Debt Fund ICICI Prudential | ★★★★★ | +6.0% | +7.5% | +6.8% | 0.40% | ₹8,974Cr |
| 4 | UTI Banking & PSU Fund UTI | ★★★★☆ | +6.0% | +7.5% | +7.7% | 0.22% | ₹1,483Cr |
| 5 | LIC MF Banking & PSU Fund LIC | ★★★☆☆ | +5.6% | +7.4% | +6.3% | 0.28% | ₹1,869Cr |
| 6 | Invesco India Banking and PSU Fund Invesco | ★★★☆☆ | +5.6% | +7.4% | +5.9% | 0.26% | ₹96.07Cr |
| 7 | HDFC Banking and PSU Debt Fund HDFC | ★★★☆☆ | +5.5% | +7.3% | +6.4% | 0.35% | ₹5,270Cr |
| 8 | SBI Banking & PSU Fund SBI | ★★★☆☆ | +5.6% | +7.3% | +6.2% | 0.41% | ₹3,938Cr |
| 9 | Nippon India Banking and PSU Fund Nippon India | ★★★☆☆ | +5.4% | +7.3% | +6.3% | 0.39% | ₹5,180Cr |
| 10 | Bandhan Banking and PSU Fund Bandhan | ★★★★☆ | +6.0% | +7.3% | +6.3% | 0.36% | ₹12,156Cr |
| 11 | Aditya Birla Sun Life Banking & PSU Debt Fund Aditya Birla Sun Life | ★★★★☆ | +5.3% | +7.2% | +6.3% | 0.41% | ₹8,833Cr |
| 12 | Sundaram Banking & PSU Fund Sundaram | ★★★☆☆ | +5.4% | +7.2% | +6.0% | 0.27% | ₹261.16Cr |
| 13 | Edelweiss Banking and PSU Debt Fund Edelweiss | ★★☆☆☆ | +5.0% | +7.2% | +6.3% | 0.40% | ₹2,277Cr |
| 14 | Axis Banking & PSU Debt Fund Axis | ★★★★☆ | +5.5% | +7.2% | +6.2% | 0.36% | ₹12,258Cr |
| 15 | DSP Banking & PSU Debt Fund DSP | ★★☆☆☆ | +5.1% | +7.2% | +6.1% | 0.33% | ₹3,329Cr |
| 16 | HSBC Banking and PSU Debt Fund HSBC | ★★☆☆☆ | +5.5% | +7.2% | — | 0.28% | ₹3,999Cr |
| 17 | ITI Banking & PSU Debt Fund ITI | ★★★☆☆ | +5.2% | +7.2% | +6.4% | 0.23% | ₹33.47Cr |
| 18 | Mirae Asset Banking and PSU Fund Mirae Asset | ★☆☆☆☆ | +5.0% | +7.1% | +6.0% | 0.37% | ₹41.56Cr |
| 19 | Canara Robeco Banking and PSU Debt Fund Canara Robeco | ★★☆☆☆ | +5.3% | +6.9% | — | 0.39% | ₹185.65Cr |
NAV data as of 20 Aug 2026. Returns are CAGR for periods ≥1 year, computed from AMFI NAV history. Ratings are WealthTicker’s own, ranked within sub-category peers — not a SEBI or agency rating. See our methodology for every formula. This is data, not investment advice.
Popular comparisons
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Frequently asked questions
What are banking & PSU mutual funds?
Debt funds lend to governments and companies and earn interest. They're generally steadier than equity funds and are used for shorter horizons and stability.
Which is the best banking & PSU fund right now?
Franklin India Banking & PSU Debt Fund by Franklin Templeton currently ranks first among banking & PSU mutual funds by 3-year CAGR at +7.61%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have banking & PSU mutual funds given?
The category has averaged +5.54% over 1 year, +7.29% annualized over 3 years, +6.36% annualized over 5 years — peer averages over the live funds in the category, computed from AMFI NAV history.
How are banking & PSU mutual funds taxed?
Debt taxation: all gains are added to your income and taxed at your slab rate, regardless of holding period (for units bought on or after 1 April 2023).