Investment Opportunities: Invest in These Best Banking & PSU Mutual Funds
Banking and PSU are debt funds, and it is one of the popular types of mutual funds that mainly invest around 80% of their corpus in debt investments, which are issued by banking institutions and other public sector companies.
If you are looking for a secure debt fund to invest in for a couple of years, in this situation you should consider investing in banking and PSU debt funds.
Most mutual fund experts consider banking and PSU debt schemes to be the safest options for investments. These schemes invest in bonds and papers of banks and public sector companies because most of these entities are backed by the government and have no credit risk.
These schemes became extremely popular three years ago after the troubles in the debt mutual fund space. A short time ago, the debt market faced downgrades and defaults, making many conservative investors stop putting their money in debt schemes, worried they might get their money back or not.
These schemes also carry some risk. For example, these schemes invest in papers issued by private banks. Since they aren’t backed by the government, they carry some risk. However, since banks are strictly regulated, the risk is very small. Also, changes in interest rates can negatively affect these schemes.
Best Banking & PSU funds to invest in December 2024:
- Bandhan Banking & PSU Debt Fund
- Axis Banking & PSU Debt Fund
- Aditya Birla Sun Life Banking & PSU Debt Fund
- DSP Banking & PSU Debt Fund
- Kotak Banking & PSU Debt Fund
You can consider investing in banking and PSU schemes if you have been investing for three years and are aware of the risks related to these schemes. DSP Banking & PSU Debt Fund has been in the top second quartile for the past 10 months; before that, it was in the top third quartile.
