LIC MF Banking & PSU Debt Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 11, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
LIC MF Banking & PSU Debt Fund Direct Growth Plan has a NAV of ₹40.1157 as of 10 Sep 2026 and scheme AUM of ₹1,648 Cr. Its 1-year, 3-year and 5-year returns are 5.65%, 7.37% and 6.3%, and the fund sits in the Balanced Risk category.
Our view is that this is a steady debt option rather than a fast-moving return story. The fund has held up better than its benchmark over the medium and longer term, and the portfolio is spread across treasury bills, PSU-linked debt and other corporate debt exposures with meaningful cash support.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹40.1157 as of 10 Sep 2026 |
| AUM | ₹1,648 Cr |
| Expense Ratio | 0.28% |
| Launch Date | 01 Jan 2013 |
| Min SIP | ₹200 |
| Risk Category | Balanced Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load |
| Fund Managers | Pratik Shroff, Rahul Singh |
The fund is managed by Pratik Shroff and Rahul Singh.
Source data date: as of 10 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.22% | -4.06% |
| 3M | 1.73% | 1.37% |
| 1Y | 5.65% | -7.31% |
| 3Y | 7.37% | 6.07% |
| 5Y | 6.3% | 5.91% |
The recent picture is constructive. Over 1 month, the fund was slightly positive while the benchmark was negative, which tells us the portfolio has not been forced to mirror market swings. Over 3 months, both moved in the same broad direction, but the fund stayed a little ahead. That matters for debt investors because consistency often matters more than sharp spurts.
The 1-year number is especially notable: 5.65% versus -7.31% for the benchmark. That gap shows that the fund has been far more resilient than the index over the last year. The time pattern also suggests a choppy stretch rather than a one-way climb, so we would read the 1-year result as evidence of defence rather than aggressive risk taking.
The longer view is steadier. The 3-year return of 7.37% is above the benchmark’s 6.07%, and the 5-year return of 6.3% is also ahead of 5.91%. So the fund is not just benefiting from a short rebound; its longer-term compounding has also stayed slightly better than the benchmark. Recent behaviour is stronger than the benchmark, but it still fits within the same broad medium-yield debt profile.
Source data date: as of 10 Sep 2026
Should you BUY or HOLD LIC MF 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 LIC MF Banking & PSU Debt? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| LIC MF Banking & PSU Debt Fund Direct Growth Plan | 5.65% | 7.37% | 6.3% |
| 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.
On 1-year returns, the fund trails several of the listed peers, especially the stronger recent numbers from TRUSTMF Banking & PSU Fund Direct Growth Plan and Franklin India Banking & PSU Debt Fund Direct Growth Plan. The gap is smaller over 3 years, where the fund stays close to the peer cluster, and its 5-year return is also broadly in line with the group.
That mix tells a split story: the fund has been more measured in the latest year, but its longer-term record remains respectable. Relative to peers with available figures, it looks less punchy in the near term, yet not materially out of step over longer windows. For investors who care more about steadiness than chasing the strongest short-run number, that difference matters.
Source data date: as of 10 Sep 2026
Want to know more? Log in to Univest for more mutual fund insights.
Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| TREPS | Cash & Cash Equivalents and Net Assets | 9.23% |
| 182 Days Tbill Red 03-09-2026 | Treasury Bills | 6.06% |
| 8.14% Nuclear Power Corporation ** | Corporate Debt | 3.81% |
| 8.09% NLC India Ltd. ** | Corporate Debt | 3.76% |
| 8.37% National Highways Authority of India ** | Corporate Debt | 3.25% |
| 7.83% Small Industries Development BK of India ** | Corporate Debt | 3.22% |
| 7.43% Jamnagar Utilities & Power Pvt. Ltd. ** | Corporate Debt | 3.15% |
| 7.75% Bharti Telecom Ltd. | Corporate Debt | 3.12% |
| 7.37% Indian Railway Finance Corporation Ltd. ** | Corporate Debt | 3.11% |
| 7.62% National BK for Agriculture & Rural Dev. ** | Corporate Debt | 3.10% |
The largest holding, TREPS, is 9.23%, so no single line dominates the portfolio on its own. The next largest position, treasury bills, is still meaningful at 6.06%, and the rest of the top ten cluster between 3.81% and 3.10%, which suggests a fairly even spread among the main credit exposures.
That step-down from the top holding to the tenth is not steep, so influence is likely to be shared across several positions rather than concentrated in one or two names. The top 10 holdings account for approximately 41.81% of the portfolio, and the fund has 46 disclosed holdings in total, which points to a longer tail beyond the visible top positions.
In practical terms, the structure may help reduce dependence on any single issuer, but it also means the fund’s return profile is shaped by a mix of cash, government securities and corporate debt. The balance across those pieces is one reason the portfolio reads as diversified within its debt style.
To see all holdings, visit the LIC MF Banking & PSU Debt Fund Direct Growth Plan page
Source data date: as of 10 Sep 2026
Who should invest
This fund may suit investors who are comfortable with a moderate debt-style risk profile and want a portfolio that has stayed ahead of its benchmark over 1-year, 3-year and 5-year windows. The return pattern suggests a relatively steady compounding path rather than a sharp one-year spike, which can appeal to investors with a medium- to longer-term horizon.
The main trade-off is that the fund does not lead the peer set on every recent measure, especially the 1-year number, so an investor may accept some relative lag in exchange for a steadier profile and a diversified mix of cash, treasury and corporate debt exposures. It is better suited to investors who value consistency and benchmark resilience over chasing the strongest short-term peer number.
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 10 Sep 2026
Frequently asked questions
What is the current NAV of LIC MF Banking & PSU Debt Fund Direct Growth Plan?
The current NAV is ₹40.1157 as of 10 Sep 2026.
What are the 1-year, 3-year and 5-year returns?
The 1-year return is 5.65%, the 3-year return is 7.37% and the 5-year return is 6.3%.
How has the fund performed versus its benchmark?
It has stayed ahead of the benchmark across 1-year, 3-year and 5-year periods. The benchmark figures are -7.31%, 6.07% and 5.91% for those same windows.
How does it compare with the peer funds listed here?
Its 1-year return is lower than some peers, but its 3-year and 5-year numbers remain close to the peer group. That makes the recent story less strong than the longer-term one.
What is the minimum SIP amount?
The minimum SIP amount is ₹200.
Who manages the fund and what is the exit load?
The fund is managed by Pratik Shroff and Rahul Singh. The exit load is no exit load.
Bottom line
LIC MF Banking & PSU Debt Fund Direct Growth Plan looks steadier over longer windows than its latest one-year number alone suggests. It has stayed ahead of the benchmark over 1-year, 3-year and 5-year periods, while peer comparison shows a softer recent year but a reasonably aligned longer-term record. The risk label is Balanced Risk, and the portfolio leans on cash, treasury bills and multiple debt positions rather than one large concentration. That combination may suit investors looking for a measured debt allocation with a stable compounding profile.
Published on 11 September 2026 at 10:02 AM IST
Explore mutual funds with Univest
Review mutual fund data, compare performance and explore fund insights on Univest.
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.