DSP Banking and PSU Debt Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 11, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
DSP Banking and PSU Debt Fund Direct Growth Plan is a debt fund with a NAV of ₹26.3737 as of 10 Sep 2026 and a scheme AUM of ₹3,270 Cr. Its 1-year, 3-year and 5-year returns are 4.88%, 7.02% and 6.04% respectively, and the risk category is Medium Risk. Our view is that it fits investors who want a conservative debt allocation with steady long-term compounding, while accepting that short stretches can still be uneven.
The fund’s recent return profile is better than its benchmark in the 1-year period and broadly stable over longer horizons. The portfolio is built around bank deposits, corporate debt and government securities, which supports a more measured credit profile than many broader debt options.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹26.3737 as of 10 Sep 2026 |
| AUM | ₹3,270 Cr |
| Expense Ratio | 0.33% |
| Launch Date | 14 Sep 2013 |
| Min SIP | ₹100 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load after holding period |
| Fund Managers | Shantanu Godambe, Sandeep Yadav |
The fund is managed by Shantanu Godambe and Sandeep Yadav.
Source data date: as of 10 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -0.18% | -4.06% |
| 3M | 1.59% | 1.37% |
| 1Y | 4.88% | -7.31% |
| 3Y | 7.02% | 6.07% |
| 5Y | 6.04% | 5.91% |
The recent return profile has been calmer than the benchmark on a 1-month basis, where the fund declined only slightly while the benchmark fell more sharply. Over 3 months, it has stayed positive and moved close to the benchmark, which suggests a relatively stable short-term pattern rather than a sharp swing in either direction.
The 1-year result stands out because the fund stayed positive while the benchmark was negative. That tells us the portfolio has held up materially better through the latest 12-month stretch, even though the broader debt backdrop was not smooth.
Longer-term, the fund has compounded at 7.02% over 3 years and 6.04% over 5 years. Those figures are slightly ahead of the benchmark at both horizons, which points to a small but persistent edge rather than a one-off surge. The pattern also suggests that the fund has not relied on sudden jumps; instead, it has produced a steadier progression across the longer holding periods.
Our view is that the 1-year, 3-year and 5-year numbers tell a consistent story. Short-term behaviour can still move around, but the longer record indicates that the fund has maintained its footing better than the benchmark across the full cycle represented here.
Source data date: as of 10 Sep 2026
Should you BUY or HOLD DSP Banking and PSU Debt?
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 DSP Banking and PSU Debt? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| DSP Banking and PSU Debt Fund Direct Growth Plan | 4.88% | 7.02% | 6.04% |
| TRUSTMF Banking & PSU Fund Direct Growth Plan | 7.26% | 7.52% | 6.17% |
| Franklin India Banking & PSU Debt Fund Direct Growth Plan | 6.69% | 7.58% | 6.45% |
| UTI Banking & PSU Debt Fund Direct Growth Plan | 6.27% | 7.46% | 7.72% |
| Bandhan Banking and PSU Debt Fund Direct Growth Plan | 6.03% | 7.21% | 6.25% |
| ICICI Pru Banking and PSU Debt Fund Direct Growth Plan | 6% | 7.38% | 6.7% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
The fund’s 1-year return is below the peer set shown here, while its 3-year and 5-year returns remain broadly in the same range as several peers. That means the recent stretch has been softer than the strongest comparables, but the longer record does not show a wide gap. One peer has a clearly stronger 5-year number, yet the rest cluster relatively close, so the comparison is mixed rather than one-sided.
What matters most is that the short-term picture and the longer-term picture do not tell exactly the same story. The fund has been more modest over 1 year, but its 3-year and 5-year figures support the case for a steadier long-term debt allocation.
Source data date: as of 10 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Punjab National Bank | Certificate of Deposit | 7.39% |
| REC Limited** | Corporate Debt | 6.88% |
| Bank of Baroda** | Certificate of Deposit | 6.69% |
| Power Finance Corporation Limited** | Corporate Debt | 6.5% |
| Bharti Telecom Limited** | Corporate Debt | 6.4% |
| HDFC Bank Limited** | Corporate Debt | 6.38% |
| 6.94% GOI 11052036 | Government Securities | 6.24% |
| Small Industries Development Bank of India** | Corporate Debt | 6.16% |
| Indian Railway Finance Corporation Limited** | Corporate Debt | 4.02% |
| Export-Import Bank of India** | Corporate Debt | 3.93% |
The largest holding is Punjab National Bank at 7.39%, so no single position dominates the portfolio by itself. The weight then moves down in a fairly gradual way, with the tenth holding still at 3.93%, which suggests the disclosed core is spread across several similar-sized positions rather than being driven by one outsized bet.
The top 10 holdings account for approximately 60.59% of the portfolio. With 32 disclosed holdings in total, the fund appears to combine a meaningful core allocation with a longer tail of smaller positions. That structure may help reduce reliance on any one issuer while still keeping the portfolio anchored in the larger names shown here.
For investors, that blend can be useful because the heavier weights are not overly compressed into the first few positions, yet the portfolio is still concentrated enough that changes in a handful of holdings could matter. Our view is that the combination of bank paper, corporate debt and government securities may support a measured credit stance without making the fund look scattered.
To see all holdings, visit the DSP Banking and PSU Debt Fund Direct Growth Plan page
Source data date: as of 10 Sep 2026
Who should invest
This fund suits investors with a conservative-to-moderate debt allocation mindset and a willingness to hold for at least a medium-term horizon. The Medium Risk label matters, because the fund has still shown some short-term movement even though the longer-term track record is steadier.
The main trade-off is between stability and the possibility of some return variation versus safer-looking cash alternatives. The fund has outpaced the benchmark across the 1-year, 3-year and 5-year periods, and that makes it more attractive for investors who want debt exposure that is still active rather than purely defensive.
Because the portfolio is built mainly around bank instruments, corporate debt and government securities, it may suit someone looking for a relatively structured fixed-income allocation rather than a high-volatility debt strategy.
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: No exit load after holding period.
Source data date: as of 10 Sep 2026
Frequently asked questions
What is the current NAV of DSP Banking and PSU Debt Fund Direct Growth Plan?
The current NAV is ₹26.3737 as of 10 Sep 2026.
What are the 1-year, 3-year and 5-year returns?
The fund’s 1-year, 3-year and 5-year returns are 4.88%, 7.02% and 6.04% respectively.
How has the fund performed against the benchmark?
It has beaten the benchmark across 1 year, 3 years and 5 years. The gap is especially visible over 1 year, where the fund stayed positive while the benchmark was negative.
How does it compare with peer funds?
Its 1-year return trails several peers shown here, but its 3-year and 5-year figures stay in the same broad range as the group. The longer record looks more balanced than the recent 12-month stretch.
What is the minimum SIP amount?
The minimum SIP amount is ₹100.
Who manages the fund and what is the exit load?
The fund is managed by Shantanu Godambe and Sandeep Yadav. The exit load is described as no exit load after the holding period.
Bottom line
This fund shows a softer 1-year run than its longer-term numbers, but the 3-year and 5-year returns remain steady enough to support a measured debt allocation case. It compares reasonably well with the benchmark and stays in the same broad range as several peers on longer horizons, even if the recent stretch is less impressive. The Medium Risk label, combined with a portfolio built around bank paper, corporate debt and government securities, makes it more suitable for investors who want disciplined fixed-income exposure rather than the calmest possible ride.
Published on 11 September 2026 at 12:46 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.