Banking & PSUModerateVR Rating
₹5,599 Cr.
None
| Name | 1Y Return | VR Rating | 1Y Rank | 3Y Rank | 5Y Rank | NAV(₹) |
|---|
HDFC Banking and PSU Debt Fund-Reg(G) is an open-ended banking & PSU fund designed for investors who want exposure to a debt portfolio that is typically focused on high-quality issuers such as banks, public sector undertakings (PSUs), and public financial institutions. Banking & PSU funds need to invest minimum 80% in Debt instruments of banks, Public Sector Undertakings, Public Financial Institutions and Muncipal Bonds. These segments are generally perceived as relatively stronger on credit comfort compared to broader corporate credit, but they can still have interest-rate risk depending on portfolio maturity.
As of 1 Feb 2026, HDFC Banking and PSU Debt Fund-Reg(G) manages 5599 in assets, has a Yield to Maturity (YTM) of 7, and a Modified Duration of 1132.
In simple terms: YTM indicates the portfolio’s current income potential, while modified duration shows how sensitive the fund is to interest-rate changes (lower is typically more stable for short-term parking).
The investment objective of HDFC Banking and PSU Debt Fund-Reg(G) is to generate reasonable returns by investing in a portfolio of debt instruments of banks, PSUs, public financial institutions, and other debt and money market instruments, in line with banking & PSU fund norms. Investors can typically invest and redeem on business days (subject to scheme cut-off timings and applicable exit load)
The current NAV of the scheme is ₹23.69 as on 24 Mar 2026, and the risk level is Moderate.
HDFC Banking and PSU Debt Fund-Reg(G) was launched on 26 Mar 2014 and is benchmarked against NIFTY Banking and PSU Debt Index. The scheme is managed by Anil Bamboli who has been managing the fund since 20 Mar 2014 and the fund is also managed by . The exit load of the fund is Nil.
HDFC Banking and PSU Debt Fund-Reg(G) invests across debt instruments to balance liquidity and yield. As of 28 Feb 2026, the portfolio is allocated to Corporate Debt (79%), Government Securities (13%), Certificate of Deposit (3%), PTC & Securitized Debt (2%).
A quick way to read this: higher G-Secs/cash typically signals more conservatism and liquidity, while higher bank/PSU bond exposure aims to improve yield, assuming credit quality stays strong.
Credit quality matters the most in banking & PSU bond funds because the strategy is built around perceived higher-quality segments. The fund’s portfolio is allocated 77% to AAA, 13% to SOV, 3% to A1+, 2% to AAA(SO), 2% to AA+(CE), 1% to AAA(CE).
In plain language: the higher the share of top-rated and sovereign instruments, the more the fund is leaning toward safety and stability. For Banking & PSU funds, credit quality is the most important filter, because one avoidable credit event can matter more than small return differences.
The top 5 holdings of the fund are 7.46% Indian Railways Finance Corp. Ltd.^ (5.%), 7.57% Indian Railways Finance Corp. Ltd.^ (3.6%), 7.18% GOI MAT 140833 (3.%), 8.1% Bajaj Housing Finance Ltd.^ (2.7%), 7.26% GOI MAT 060233 (2.7%)
In Banking & PSU funds, large holdings are commonly bonds or money market instruments issued by banks, PSUs, and public financial institutions, chosen mainly for credit comfort and liquidity management.
| Sector | Allocation (%) |
|---|---|
| "Bank | 36% |
| Finance Term Lending | 25% |
| Finance | 15% |
| G-Sec | 13% |
| Other | 3% |
It is normal for banking & PSU funds to have meaningful exposure to banks and PSU issuers because that is the core mandate of the category.
HDFC Banking and PSU Debt Fund-Reg(G)’s recent annualized returns are 5.9% (1 Year), 7.0% (3 Years) and 5.9% (5 years). Over 1 year, it has delivered 5.9% annualized returns. These returns are as of 25 Mar 2026
Against the full Banking & PSU fund peer set, the scheme is ranked 9/20 over 1 year, 6/19 over 3 years, 6/18 over 5 years period.
One simple way to interpret rankings: Banking & PSU funds can show meaningful differences across peers because maturity profile and interest-rate positioning can vary from fund to fund, so peer ranking is generally more useful.
If you had invested ₹1,00,000 in HDFC Banking and PSU Debt Fund-Reg(G) then you would have got:
| Duration | Annualized Returns (%) | Current Total Value | Current Total Profit |
|---|---|---|---|
| 1 Year | 5.9% | ₹105900.00 | ₹5900.00 |
| 3 Year | 7.0% | ₹107000.00 | ₹7000.00 |
| 5 Year | 5.9% | ₹105900.00 | ₹5900.00 |
Note: These are historical returns and they may not repeat in the future.
Also note for very short holding periods, exit load can impact realized returns. Always check exit load before investing in any fund. Data updated as of 25 Mar 2026
The Potential Risk Class (PRC) matrix of HDFC Banking and PSU Debt Fund-Reg(G) is B-III which means that the fund has Relatively high interest rate risk and moderate credit risk.
It may suit investors who want to:
It offers a few practical benefits: professional management of high-quality corporate bonds, easy entry/exit (subject to cut-offs and exit load, if any), and a portfolio that aims to balance stability and yield. It can be useful for short-to-medium term goals, where investors seek steady accrual and are comfortable with some NAV movement due to interest-rate changes.
Banking & PSU Funds are generally positioned as high-quality debt funds, but they are not risk-free. Key things to watch are credit quality (AAA vs AA+ mix), issuer concentration, interest-rate risk (modified duration and average maturity), and changes in YTM over time. Also check exit load and cut-off rules, especially if your holding period could be short. Banking & PSU Funds can show more NAV movement because duration is typically higher, so they are usually better suited for investors with a medium-term horizon rather than short-term parking.
For Banking and PSU funds, taxation depends heavily on when you bought your units. Units acquired on or after 1 April 2023 are generally taxed as short-term capital gains at your slab rate and there are no long-term capital gain and loss benefits.
For units acquired before 1 April 2023, taxation follows the older capital-gains framework based on holding period and the date of sale.
Note that regulatory/tax updates over time can change how long-term treatment works.
HDFC Banking and PSU Debt Fund-Reg(G) is positioned as a higher-quality debt option that aims to deliver reasonable returns through a portfolio focused on banks, PSUs and public financial institutions, while keeping liquidity available via the open-ended structure.
A simple way to track whether it is doing its job is to follow three live indicators: credit quality, peer ranking consistency, and monthly movement in YTM and modified duration. Among these, credit quality should always come first because protecting capital matters more than chasing marginally higher returns; focus on the rating mix (AAA/AA+/sovereign exposure), issuer concentration, and any meaningful shifts in the credit profile, and use returns/ranks mainly as a supporting check
To invest a lumpsum amount in HDFC Banking and PSU Debt Fund-Reg(G) with Ventura: Access the Mutual funds section by logging in to Ventura through your browser/mobile app Select HDFC Banking and PSU Debt Fund-Reg(G) from the list, the amount to be invested & make the payment.
To start a SIP (Systematic Investment Plan) in HDFC Banking and PSU Debt Fund-Reg(G) with Ventura: Access the Mutual funds section by logging in to Ventura through your browser/mobile app Select HDFC Banking and PSU Debt Fund-Reg(G) from the list, the amount to be invested & date of deduction. Pay the first instalment towards your SIP. Set the autopay mandate to enable regular investment of future SIP instalments, directly from your bank account. And you're done. Note: Remember to keep your bank account funded with the amount for regular SIPs for your mutual fund investment in HDFC Banking and PSU Debt Fund-Reg(G).
It will take up to one trading day for the invested HDFC Banking and PSU Debt Fund-Reg(G) units to reflect in your portfolio. For example, If you have made the investment in HDFC Banking and PSU Debt Fund-Reg(G) on Monday before the cut-off time, the units will be allotted to you by Tuesday or the next working day if it is followed by a holiday. The NAV (Net Asset Value) for the units allotted will be as of the day you place your trades.
Yes, mutual funds can be bought or redeemed after market hours through the Ventura web platform or mobile application. However, the execution of these orders depends on the mutual fund's cutoff time for processing transactions.
