ITI Banking & PSU Debt Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 16, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
ITI Banking & PSU Debt Fund Direct Growth Plan currently has a NAV of ₹14.224 as of 15 Sep 2026 and a scheme AUM of ₹33 Cr. Its 1-year, 3-year and 5-year returns are 5.09%, 7.03% and 6.32%, and the fund sits in the Balanced Risk category. Our view is that it suits investors who want debt exposure with a measured return profile rather than a very low-volatility alternative.
The fund has delivered steady medium-term compounding, while the recent 1-year outcome is more moderate. That mix, along with a portfolio tilted toward sovereign, PSU and high-quality financial exposure, suggests a conservative-to-balanced debt strategy rather than a pure cash-like holding.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹14.224 as of 15 Sep 2026 |
| AUM | ₹33 Cr |
| Expense Ratio | 0.15% |
| Launch Date | 22 Oct 2020 |
| Min SIP | ₹500 |
| Risk Category | Balanced Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load |
| Fund Managers | Laukik Bagwe |
The fund is managed by Laukik Bagwe.
Source data date: as of 15 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.09% | -4.81% |
| 3M | 1.28% | -3.63% |
| 1Y | 5.09% | -8.27% |
| 3Y | 7.03% | 5.59% |
| 5Y | 6.32% | 5.58% |
The recent pattern is constructive. The fund’s 1-month and 3-month returns stayed positive, even while the benchmark was negative over the same periods. That tells us the scheme has held up better than the benchmark in the short run, which is useful for investors looking for smoother debt-led participation.
Over 1 year, the fund also stayed ahead of the benchmark by a wide margin, with 5.09% versus -8.27%. That gap is meaningful, but it also reflects that the benchmark has been weak rather than simply the fund being exceptionally strong. In other words, the fund has shown relative resilience, not just absolute return.
The 3-year and 5-year numbers tell a more balanced story. At 7.03% over 3 years and 6.32% over 5 years, the fund has compounded steadily, and both periods are ahead of the benchmark’s 5.59% and 5.58%. The longer-term track record suggests the scheme has been able to preserve a stable upward trend through different market phases, which is important for a debt fund that is not meant to rely on sharp bursts of performance.
The time pattern also points to modest fluctuations rather than dramatic swings. For investors, that means the fund appears more focused on consistency than on stretching for aggressive upside. The return profile is therefore better read as dependable medium-term compounding than as a source of high short-term excitement.
Source data date: as of 15 Sep 2026
Should you BUY or HOLD ITI Banking & 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 ITI Banking & PSU Debt? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| ITI Banking & PSU Debt Fund Direct Growth Plan | 5.09% | 7.03% | 6.32% |
| TRUSTMF Banking & PSU Fund Direct Growth Plan | 7.26% | 7.52% | 6.17% |
| Franklin India Banking & PSU Debt Fund Direct Growth Plan | 6.51% | 7.51% | 6.4% |
| UTI Banking & PSU Debt Fund Direct Growth Plan | 6.2% | 7.42% | 7.71% |
| Bandhan Banking and PSU Debt Fund Direct Growth Plan | 5.79% | 7.14% | 6.22% |
| ICICI Pru Banking and PSU Debt Fund Direct Growth Plan | 5.66% | 7.2% | 6.63% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
On 1-year performance, the fund trails the stronger peer outcomes but still stays in the same broad return range as the peer set. Over 3 years, it is close to the better peer figures and ahead of some peers with lower 3-year returns. The 5-year picture is mixed: it is ahead of several peers, but UTI Banking & PSU Debt Fund Direct Growth Plan shows a stronger longer-term figure. The short-term and longer-term comparisons therefore do not tell the same story, which is useful for framing this fund as steady rather than dominant.
Source data date: as of 15 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| 6.94% Government of India (11/05/2036) | Government Securities | 17.8% |
| 8.14% Nuclear Power Corporation of India Limited (25/03/2028) | Corporate Debt | 9.01% |
| 7.59% National Housing Bank (08/09/2027) | Corporate Debt | 8.92% |
| 7.71% REC Limited (26/02/2027) | Corporate Debt | 8.92% |
| 7.33% Indian Railway Finance Corporation Limited (27/08/2027) | Corporate Debt | 8.9% |
| HDFC Bank Limited (22/01/2027) | Certificate of Deposit | 8.67% |
| 7.79% Small Industries Dev Bank of India (19/04/2027) | Corporate Debt | 7.44% |
| 7.23% Power Finance Corporation Limited (05/01/2027) | Corporate Debt | 7.42% |
| Net Receivables / (Payables) | Cash & Cash Equivalents and Net Assets | 6.13% |
| 7.53% National Bank for Agriculture and Rural Development (24/03/2028) | Corporate Debt | 5.92% |
The largest holding is the 6.94% Government of India security due 11 May 2036 at 17.8%, which is sizable enough to be a meaningful driver of portfolio behaviour. After that, the weights step down fairly gradually rather than collapsing into a single dominant position, with the next several holdings clustered in the 8% to 9% range.
By the tenth disclosed holding, the weight is 5.92%, so the portfolio still shows a fairly broad spread across individual positions. That shape suggests the fund may not depend on only one or two exposures for its return outcome. Instead, several government, PSU and banking-related holdings could collectively influence performance.
The top 10 holdings account for approximately 89.13% of the portfolio, and the fund discloses 15 holdings in total. That tells us the visible portfolio is concentrated in a relatively small set of positions, even though there is still a longer tail beyond the top 10. For debt investors, that level of concentration may be acceptable when the holdings are mainly in high-quality issuers, but it also means a handful of positions are likely to have greater influence on results.
To see all holdings, visit the ITI Banking & PSU Debt Fund Direct Growth Plan page
Source data date: as of 15 Sep 2026
Who should invest
This fund is better suited to investors who are comfortable with moderate risk inside a debt allocation and who can stay invested for a medium-to-long horizon. The Balanced Risk label fits a scheme that has shown steadier compounding over 3 years and 5 years, while also staying ahead of the benchmark across the review periods.
The main trade-off is that the portfolio is not positioned like a very short-duration, ultra-conservative option. Its mix of government securities, PSU names and a banking certificate of deposit can support stability, but the return profile still depends on rate conditions and credit-quality selection. Investors who want low-volatility debt exposure may like the discipline, while those wanting very high return potential may find the outcome more measured.
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.
Source data date: as of 15 Sep 2026
Frequently asked questions
What is the current NAV of ITI Banking & PSU Debt Fund Direct Growth Plan?
The current NAV is ₹14.224 as of 15 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 5.09% over 1 year, 7.03% over 3 years and 6.32% over 5 years.
How has the fund performed against its benchmark?
It has stayed ahead of the benchmark across all the listed periods. The 1-year, 3-year and 5-year figures are all higher than the benchmark’s corresponding returns.
How does it compare with peers on available return data?
Its 1-year return trails some peers, but its 3-year and 5-year numbers remain close to the stronger peer outcomes in the group. The longer-term picture is therefore more competitive than the short-term one.
What is the minimum SIP amount?
The minimum SIP amount is ₹500.
Who manages the fund and what is the exit load?
Laukik Bagwe manages the fund. The exit load is no exit load.
Bottom line
ITI Banking & PSU Debt Fund Direct Growth Plan looks steadier over the medium term than its recent 1-year figure alone might suggest. It has stayed ahead of the benchmark across the key periods, while peer comparisons show a mixed picture that is stronger in the longer horizon than in the shortest one. The portfolio is concentrated in a relatively small set of high-quality debt and cash-like holdings, which supports a disciplined debt profile. Our view is that it suits investors seeking balanced debt exposure with patience for medium-term compounding.
Published on 16 September 2026 at 4:36 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.