ICICI Pru Banking and PSU Debt Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 5, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
ICICI Pru Banking and PSU Debt Fund Direct Growth Plan has a current NAV of ₹36.5767 as of 09 Sep 2026, with an AUM of ₹8,667 Cr. Its 1-year, 3-year and 5-year returns are 6.01%, 7.39% and 6.71%, and the scheme carries a Medium Risk label.
Our view is that this is a steady debt fund rather than a short-term return chase. The portfolio leans on banking and PSU-style debt papers and government securities, which can suit conservative investors looking for comparatively restrained volatility and a multi-year holding period.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹36.5767 as of 09 Sep 2026 |
| AUM | ₹8,667 Cr |
| Expense Ratio | 0.39% |
| Launch Date | 13 Mar 2013 |
| Min SIP | ₹100 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load after holding period |
| Fund Managers | Manish Banthia, Rohit Lakhotia |
The fund is managed by Manish Banthia and Rohit Lakhotia.
Source data date: as of 09 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.09% | -4.69% |
| 3M | 1.66% | 0.93% |
| 1Y | 6.01% | -7.16% |
| 3Y | 7.39% | 6% |
| 5Y | 6.71% | 5.87% |
The recent picture is mixed but not weak. Over 1 month and 3 months, the fund has stayed positive, while the benchmark has been volatile and has even slipped over the shorter 1-month window. That tells us the fund has offered a steadier path than the benchmark in the very recent period.
The 1-year number is more striking. The fund’s 6.01% return sits well ahead of the benchmark’s -7.16%, which points to stronger resilience over a difficult year for the index. For debt investors, that kind of gap matters more than headline excitement because it suggests the fund has preserved a more stable return pattern.
The longer history is more balanced. At 7.39% over 3 years and 6.71% over 5 years, the fund has remained ahead of the benchmark’s 6% and 5.87% over the same periods. The advantage is not dramatic, but it is consistent enough to show that the fund has kept up with, and modestly exceeded, the benchmark over fuller market cycles.
Our read is that the short-term trend and the longer-term trend point in the same general direction: the fund has not relied on a sudden burst of performance. Instead, it has shown gradual compounding with comparatively calm behaviour, which is usually what debt investors look for when they want stability before maximum upside.
Source data date: as of 09 Sep 2026
Should you BUY or HOLD ICICI Pru 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 ICICI Pru Banking and PSU Debt? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| TRUSTMF Banking & PSU Fund Direct Growth Plan | 7.26% | 7.52% | 6.17% |
| Franklin India Banking & PSU Debt Fund Direct Growth Plan | 6.68% | 7.58% | 6.45% |
| UTI Banking & PSU Debt Fund Direct Growth Plan | 6.3% | 7.47% | 7.72% |
| Bandhan Banking and PSU Debt Fund Direct Growth Plan | 6.05% | 7.22% | 6.26% |
| ICICI Pru Banking and PSU Debt Fund Direct Growth Plan | 6.01% | 7.39% | 6.71% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the 1-year view, the fund trails the strongest peer figures in this set, though it is still close to the middle of the group rather than far away from it. The 3-year number is also solid, but a few peers are slightly ahead on that horizon.
The 5-year figure is more encouraging than the 1-year outcome because it is better than some peer results and sits above the current benchmark comparison over the same span. Taken together, the shorter and longer periods tell different stories: the recent peer comparison is tighter, while the longer horizon shows this fund holding a reasonable place among comparable debt funds without a sharp performance edge.
Source data date: as of 09 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| 7.53% NABARD | Corporate Debt | 4.32% |
| 7.58% LIC Housing Finance Ltd. ** | Corporate Debt | 3.74% |
| 6.9% Government Securities | Government Securities | 3.34% |
| 7.7% NABARD ** | Corporate Debt | 2.89% |
| 6.6% Rural Electrification Corporation Ltd. ** | Corporate Debt | 2.87% |
| 6.96% Power Finance Corporation Ltd. ** | Corporate Debt | 2.86% |
| Net Current Assets | Cash & Cash Equivalents and Net Assets | 2.78% |
| 7.57% State Government of Madhya Pradesh | Government Securities | 2.53% |
| 7.68% Small Industries Development Bank of India. ** | Corporate Debt | 2.31% |
| 6.92% Power Finance Corporation Ltd. ** | Corporate Debt | 2.29% |
The largest disclosed holding is 7.53% NABARD at 4.32%, which is meaningful but not overwhelming on its own. The next holdings step down gradually rather than dropping sharply, with the tenth holding still carrying 2.29%. That pattern suggests the portfolio is not built around a single dominant position.
The top 10 holdings together account for approximately 29.93% of the portfolio, while the scheme discloses 70 holdings overall. That combination indicates a wider tail beyond the largest positions, so the fund’s risk is likely to be spread across many securities rather than concentrated in only a few. At the same time, the displayed weights still show that the named corporate debt and government securities positions may have greater influence on returns than the smaller holdings below the top 10.
Because the disclosed holdings are spread across corporate debt, government securities and cash-like assets, the portfolio may support a more balanced income-oriented profile. Our view is that the mix is consistent with a fund that seeks stability first, while still keeping enough active positioning in individual papers to matter for performance.
To see all holdings, visit the ICICI Pru Banking and PSU Debt Fund Direct Growth Plan page
Source data date: as of 09 Sep 2026
Who should invest
This fund is more suitable for investors who are comfortable with a Medium Risk debt scheme and want a steadier return path rather than aggressive upside. The 1-year result has been better than the benchmark, while the 3-year and 5-year figures show consistency rather than sharp acceleration.
A longer holding horizon of at least a few years fits the way the fund has behaved across the reported periods. The main trade-off is that the investor may accept moderate fluctuations and benchmark-relative variation in exchange for a portfolio that has looked relatively stable over time and has not depended on one strong market phase.
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 09 Sep 2026
Frequently asked questions
What is the current NAV of ICICI Pru Banking and PSU Debt Fund Direct Growth Plan?
The current NAV is ₹36.5767 as of 09 Sep 2026.
What are the 1-year, 3-year and 5-year returns?
The returns are 6.01% for 1 year, 7.39% for 3 years and 6.71% for 5 years.
How has the fund performed against the benchmark?
It has done better than the benchmark over 1 year, 3 years and 5 years. The gap is widest over 1 year, where the benchmark is negative.
How does it compare with peer funds on available return data?
Its 1-year return is lower than some peers in the comparison set, while its 3-year and 5-year numbers remain broadly competitive. The longer horizon shows a steadier standing than the short-term figure.
What is the minimum SIP amount?
The minimum SIP amount is not stated in the available scheme details.
Who manages the fund and what is the exit load?
The fund is managed by Manish Banthia and Rohit Lakhotia. There is no exit load after the holding period.
Bottom line
ICICI Pru Banking and PSU Debt Fund Direct Growth Plan has shown a steadier long-term pattern than its benchmark, with the recent 1-year result also holding up well against the index. Compared with peer funds, its short-term return is less strong than the best names in the set, but its longer-horizon figures remain broadly competitive. The Medium Risk label and the debt-heavy portfolio make it more appropriate for investors who value stability, while the spread across 70 holdings can help reduce reliance on any single position.
Published on 10 September 2026 at 9:33 AM 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.