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A banking and PSU fund is a debt mutual fund which invests a majority of its portfolio in debt instruments offered by banks and public-sector undertakings.
Invest systematically in regular amounts and build a corpus with a disciplined investing habit.
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INVEST LUMPSUMTotal Amount Invested
₹ 0
after 30 years you will get a return of
₹ 0
Disclaimer: Projections/estimations is backtested using historical data.
Total Amount Invested
₹ 0
after 30 years you will get a return of
₹ 0
Disclaimer: Projections/estimations is backtested using historical data.
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A type of open-ended debt mutual fund, a banking and PSU fund, invests at least 80% of its portfolio in debt instruments issued by banks and public-sector undertakings. These instruments carry a good rating and are backed by good issuers, making the fund attractive for investors.
Offers stable returns on investment with minimal credit risk
Good portfolio with quality investment in banking and PSU securities
There’s no capping on the maximum investment amount
You can get better returns compared to fixed deposits
The funds aim to grow the portfolio through interest earned and also through the rise in the price of the underlying securities
Check the expense ratio of such schemes. A high ratio eats into the fund’s returns and should be avoided
Compare Banking and PSU Funds on their returns. A fund with the highest return is better
Check the portfolio for the credit rating of the underlying securities
Risk of default on the debt instrument
Risk of rising interest rates, which reduces the value of debt instruments
Risk of inflation reducing the returns from the debt fund
Risk of not being able to trade in debt instruments
Returns earned are taxed at your income tax slab rates
Dividends earned, if any, are taxed at your income tax slab rate
Earn dividends on your investment at regular intervals
Accumulate the returns over the investment tenure and get a lump sum amount on redemption
PSU funds are debt mutual funds that lend only to PSUs (Public Sector Undertakings).They are one of the popular low-risk fund categories.
Banking and PSU Funds invest at least 80% of the total corpus in instruments issued by banks and public sector companies.
You can invest in Banking and PSU Funds through the Aditya Birla Capital website. Please visit the mutual fund section for steps involved.
No, Banking and PSU Funds do not come with a lock-in period.
As the instruments invested in have central government backing, Banking and PSU Funds are significantly less risky as compared to quite a few other debt funds.