SBI BSE PSU Bank Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 16, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
SBI BSE PSU Bank Index Fund Direct Growth Plan had a NAV of ₹13.164 as of 15 Sep 2026 and an AUM of ₹354 Cr. Its 1-year, 3-year and 5-year returns are 17.72%, 0% and 0%, and it sits in the High Risk category. Our view is that the fund has shown a strong one-year outcome, but the near-term trend has softened, so it looks best suited to investors who understand that a narrow sector theme can move sharply in both directions.
The fund’s structure is simple and concentrated within PSU banks, which makes it easy to understand but also more sensitive to banking-sector swings. Against that backdrop, the one-year figure is encouraging, yet the shorter-window performance has been weaker, so investors should read the recent numbers alongside the fund’s category risk and focused portfolio.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹13.164 as of 15 Sep 2026 |
| AUM | ₹354 Cr |
| Expense Ratio | 0.28% |
| Launch Date | 25 Mar 2025 |
| Min SIP | ₹500 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Index Funds |
| Exit Load | 0.25% on or before 15D, Nil after 15D |
| Fund Managers | Viral Chhadva |
The fund is managed by Viral Chhadva.
Source data date: as of 15 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -6.06% | -4.81% |
| 3M | -4.67% | -3.63% |
| 1Y | 17.72% | -8.27% |
| 3Y | Data not available | Data not available |
| 5Y | Data not available | Data not available |
Recent performance has been softer than the annual figure suggests. Over 1M and 3M, the fund stayed below the benchmark, which tells us the latest stretch has been weak even after the stronger 1Y outcome.
That split matters because the longer-window reading is clearly better than the short-window pattern. A positive 1Y return alongside negative 1M and 3M returns usually points to a fund that can deliver on a broader recovery phase but still remains vulnerable to short bursts of sector pressure.
Against the benchmark, the fund is ahead on the 1Y measure but behind on both short-term windows. So the comparison is mixed: the medium-term picture is supportive, while the immediate trend is less convincing.
For investors, this means the recent path has not been smooth even though the 1Y outcome stands out positively. The fund’s behaviour is consistent with a focused sector index that can move sharply when bank sentiment changes.
Source data date: as of 15 Sep 2026
Should you BUY or HOLD SBI BSE PSU Bank Index?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding SBI BSE PSU Bank Index? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| SBI BSE PSU Bank Index Fund Direct Growth Plan | 17.72% | Data not available | Data not available |
| ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan | 32.61% | 29.92% | Data not available |
| Tata Nifty Capital Markets Index Fund Direct Growth Plan | 25.91% | Data not available | Data not available |
| Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan | 21.71% | Data not available | Data not available |
| Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan | 20.15% | Data not available | Data not available |
| ICICI Pru Nifty Pharma Index Fund Direct Growth Plan | 18.11% | 18.92% | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
On 1Y returns, the fund is below several of the comparison funds with available numbers, including the stronger broad-turn and thematic peers shown here. That said, the gap is not the same story across every horizon: the few peers with 3Y figures available show that medium-term outcomes can remain strong in other themes, while this fund does not yet have comparable longer-run figures to match that view.
So the comparison tells two different stories. The current fund’s one-year result is respectable, but the peer set shows that some other index themes have posted stronger one-year and, where available, three-year outcomes. Investors should therefore read the recent recovery in context rather than treat it as a steady multi-year pattern.
Source data date: as of 15 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| State Bank of India | Bank | 26.19% |
| Bank of Baroda | Bank | 13.84% |
| Canara Bank | Bank | 13.24% |
| Punjab National Bank | Bank | 12.32% |
| Union Bank of India | Bank | 11.02% |
| Indian Bank | Bank | 9.83% |
| Bank of India | Bank | 5.46% |
| Bank of Maharashtra | Bank | 5.14% |
| Indian Overseas Bank | Bank | 1.37% |
| Central Bank of India | Bank | 0.94% |
The largest holding, State Bank of India, carries a weight of 26.19%, so it is likely to have greater influence on the fund than any other single name. That level is meaningful in a small thematic index because a move in the largest bank can shape the portfolio experience more than a broad-market fund would.
Weights then fall away fairly quickly: the tenth holding sits at 0.94%, which is a steep drop from the top position. Even the middle of the list remains clustered in double-digit or near-double-digit weights, so the portfolio is not evenly spread across the basket.
At the same time, the top 10 holdings account for approximately 99.35% of the portfolio, and the fund discloses 11 holdings in total. That means the disclosed exposure is heavily concentrated in a compact set of PSU banks, with only a very small tail beyond the names shown here.
To see all holdings, visit the SBI BSE PSU Bank Index Fund Direct Growth Plan page
Source data date: as of 15 Sep 2026
Who should invest
This fund fits investors who are comfortable with High Risk and who can hold through sharp sector swings. The one-year return is positive, but the recent 1M and 3M numbers are weaker, so the short-term path has been uneven.
It may suit a longer horizon rather than a quick allocation, because the return pattern looks more like a sector cycle than a smooth compounding story. The main trade-off is clear: a focused PSU bank basket can offer strong upside when the sector is in favour, but it can also fall faster when sentiment turns.
Investors who prefer broad diversification or a steadier return pattern may find this too narrow. Those who want a transparent banking-theme exposure and understand the volatility of a concentrated index may be more comfortable with it.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
Exit load: 0.25% on or before 15D, Nil after 15D.
Source data date: as of 15 Sep 2026
Frequently asked questions
What is the current NAV of SBI BSE PSU Bank Index Fund Direct Growth Plan?
The current NAV is ₹13.164 as of 15 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
Its 1-year return is 17.72%, while the 3-year and 5-year returns are Data not available in the available history.
How has it performed versus the benchmark?
It beat the benchmark over 1Y, but it lagged the benchmark over 1M and 3M.
How does it compare with the peer funds shown here?
Its 1-year return is below several of the comparison funds with available figures, while the few available 3-year peer numbers are stronger than this fund’s unavailable longer-run record.
Is there a minimum SIP amount?
Yes. The minimum SIP amount is ₹500.
Who manages the fund and what is the exit load?
The fund is managed by Viral Chhadva. The exit load is 0.25% on or before 15D, and nil after 15D.
Bottom line
The fund’s one-year return is positive, but the short-term path has weakened, so its recent behaviour does not look as smooth as the annual figure might first suggest. Compared with the benchmark, it has been ahead over 1Y but behind over the latest 1M and 3M windows. The portfolio is tightly concentrated in PSU banks, with State Bank of India as the largest holding, so investor outcomes may move sharply with sector sentiment. It is a clearer fit for investors who accept High Risk and a narrow theme.
Published on 16 September 2026 at 3:05 PM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.