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BANKING AND PSU FUNDS – A Read

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banking and psu funds

Banking and PSU (Public Sector Undertaking) Funds – A Brief 

Banking and PSU mutual funds primarily invests at-least 80% of their corpus in getting debt instruments issued by other public sector companies, and banking institutions. As per the amendment by SEBI in December 2017 debt securities particularly issued by municipal bodies can also be included in the portfolio of PSU fund and banking. These listed companies are usually large cap & have AAA rating from top notch credit rating agencies globally.  

Advantages of Investing in a PSU & Banking 

Here: 

  • Have high credit ratings as said by the top rating agencies.  
  • PSU and Banking sectors are perfectly backed by the Indian Government; thus, the investment enjoys superlative security. 
  • They have low-risk as the portfolio managers take care of debt securities for specific mutual funds. 

Tax Benefits of Banking and PSU Funds 

Individuals realizing capital gains upon resale of NAV units of PSU and Banking funds after 3 years are taxed as long term capital gains. After adjustment for indexation & LTCG tax-rate at 20% is urged on total profits realized.  

Top 5 Banking and PSU Funds as per Gulaq 

Here: 

  • Edelweiss Banking and PSU Debt FundIt is a debt mutual fund that was launched by Edelweiss mutual fund. Later on, it was invested on 13th Sept 2013 to its investors. Currently, the fund is managed by Gautam Kaul, and Dhawal Dalal. Talking about AUM, it is of INR 163 Cr, and the latest NAV is of INR 17.78 (dated as of 25th Feb 2020). The fund is rated moderate risk. The minimum SIP investment is INR 1000.  
  • Franklin India Banking and PSU Debt FundIt is a debt mutual fund scheme that was launched by Franklin Templeton mutual fund. Later on, it was introduced on 25th April 2014 to its investors. Currently, the fund is managed by Umesh Sharma, and Sachin Padwai Desai. Talking about AUM, it is of INR 1057 Cr, and the latest NAV is of INR 16.83 (dated as of 25th Feb 2020). The fund growth is rated moderate risk. Also, the minimum SIP investment is INR 500, and lumpsum investment is INR 5000.  
  • Axis Banking and PSU Debt FundIt is a debt mutual fund scheme that was launched by Axis mutual fund. Later on, it was introduced on 1st Jan 2013 to its investors. Currently, the fund is managed by Aditya PagariaTalking about AUM, it is of INR 13,555 Cr, and the latest NAV is of INR 1933.12 (dated as of 25th Feb 2020). The fund growth is rated as moderately low risk. Also, the minimum SIP investment is INR 1000, and, lumpsum investment is INR 5000.  
  • Kotak Banking and PSU Fund: It is a debt mutual fund scheme that was launched by Kotak Mahindra mutual fund. Later on, it was introduced on 1st Jan 2013 to its investors. Currently, the fund is managed by Deepak Agrawal. Talking about AUM, it is of INR 4553 Cr, and the latest NAV is of INR 47.54 (dated as of 25th Feb 2020). The fund growth is rated moderately low risk. The minimum SIP investment is INR 1000, and lumpsum investment is INR 5000.  
  • SBI Banking and PSU Fund It is a debt mutual fund scheme that was launched by SBI mutual fund. Later on, it was introduced on 7th Jan 2013 to its investors. Currently, the fund is managed by Rajiv Radhakrishnan. Talking about AUM, it is of INR 3713 Cr, and the latest NAV is of INR 2362.23 (dated as of 25th Feb 2020). The fund growth is rated moderate risk. Also, the minimum SIP investment is INR 500, and, lumpsum investment is INR 5000. 

Looking to invest? Hop on to gulaq.com and start investing in direct mutual funds. Furthermore, you can also get in touch: [email protected]  or Whatsapp +91-9818894632

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*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

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