Aditya Birla SL Banking & PSU Debt Review 2026: NAV, Returns, Portfolio & Should You Invest?

Aditya Birla SL Banking & PSU Debt Fund Direct Growth Plan ended 03 September 2026 with a NAV of ₹404.4722 and scheme AUM of ₹8,833 Cr. Its 1-year, 3-year and 5-year returns are 5.47%, 7.13% and 6.26%, respectively, and the fund sits in the Medium Risk category. Our view is that it suits investors seeking a comparatively steady debt allocation, but the return pattern still asks for patience because short-term gains can move around even when the longer arc is more stable.

The fund’s portfolio is built around banking, PSU and government-linked debt exposures, so the return profile is more about consistency than sharp spikes. That makes it more relevant for conservative investors who want credit-aware debt exposure and can hold through periods when performance is close to, but not materially ahead of, the benchmark.

Quick facts

Particular	Details
NAV	₹404.4722 as of 03 Sep 2026
AUM	₹8,833 Cr
Expense Ratio	0.39%
Launch Date	01 Jan 2013
Min SIP	₹1,000
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load after holding period
Fund Managers	Kaustubh Gupta, Harshil Suvarnkar

The fund is managed by Kaustubh Gupta and Harshil Suvarnkar.

Source data date: as of 03 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.16%	-3.01%
3M	2.19%	1.95%
1Y	5.47%	-4.4%
3Y	7.13%	5.74%
5Y	6.26%	6.27%

Recent performance has been calmer than the benchmark. Over 1 month, the fund edged up while the benchmark fell, which points to better short-term resilience. Over 3 months, the fund stayed ahead, although the gap was modest, so this was more a steady outperformance than a sharp surge.

The 1-year picture is stronger. The fund returned 5.47% while the benchmark was negative at -4.4%, so the fund protected capital far better in the recent year. That matters for debt investors because drawdown control is often as important as headline return.

Over longer horizons, the story becomes more balanced. The 3-year return of 7.13% is above the benchmark’s 5.74%, which suggests the fund has compounded better across a fuller cycle. The 5-year return of 6.26% is almost identical to the benchmark’s 6.27%, so the long-run edge is small rather than decisive.

The pattern in the return path also looks relatively controlled rather than erratic. That supports the idea that the fund is designed for smoother debt participation, but it also means investors should not expect equity-like jumps in strong periods. Its role is more about durability and credit-aware stability than dramatic outperformance.

Source data date: as of 03 Sep 2026

Should you BUY or HOLD Aditya Birla SL 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.

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Peer comparison

Fund	1Y return	3Y return	5Y return
Aditya Birla SL Banking & PSU Debt Fund Direct Growth Plan	5.47%	7.13%	6.26%
TRUSTMF Banking & PSU Fund Direct Growth Plan	7.26%	7.52%	6.17%
Franklin India Banking & PSU Debt Fund Direct Growth Plan	6.79%	7.56%	6.42%
UTI Banking & PSU Debt Fund Direct Growth Plan	6.33%	7.44%	7.7%
Bandhan Banking and PSU Debt Fund Direct Growth Plan	6.16%	7.21%	6.24%
ICICI Pru Banking and PSU Debt Fund Direct Growth Plan	6.06%	7.36%	6.72%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

On the 1-year view, this fund trails the stronger peer returns available in the table, especially where peers are above 6% and one is above 7%. That means its recent year has been respectable, but not the strongest among the listed options.

The 3-year figure is closer to the peer group, because 7.13% sits in the same band as the other funds shown. On 5 years, the fund remains competitive, but some peers have gone higher, so the longer-term comparison is mixed rather than one-sided. Short-term and long-term peer comparisons therefore tell slightly different stories: the recent year is softer, while the medium- and longer-term record remains broadly in line with the peer set.

Source data date: as of 03 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
7.48% National Bank for Agriculture and Rural Development (15/09/2028)	Corporate Debt	4.59%
Net Receivable / Payable	Cash & Cash Equivalents and Net Assets	2.74%
7.17% REC Ltd. (01/07/2031)	Corporate Debt	2.53%
6.58% Indian Railway Finance Corporation Ltd. (30/05/2030) **	Corporate Debt	2.22%
7.56% REC Ltd. (31/08/2027) **	Corporate Debt	2.16%
8.00% HDFC Bank Ltd. (27/07/2032) **	Corporate Debt	2.07%
7.42% State Bank of India (29/08/2039) **	Corporate Debt	1.82%
6.78% Indian Railway Finance Corporation Ltd. (30/04/2030) **	Corporate Debt	1.81%
7.60% Power Finance Corporation Ltd. (13/04/2029) **	Corporate Debt	1.71%
Government of India (11/05/2036)	Government Securities	1.67%

The largest holding is 4.59%, which is meaningful but not oversized for a debt portfolio that is spread across many positions. The next holdings step down fairly quickly into the 2% range, and the tenth holding is 1.67%, so the displayed book does not lean on one very large line item.

The top 10 holdings account for approximately 23.32% of the portfolio, while the fund has 81 disclosed holdings in total. That combination suggests a fairly long tail beyond the visible leaders, so the portfolio may be more diversified than the top holdings alone imply. At the same time, several of the bigger positions are in banking, PSU and related debt issuers, so those names are likely to have greater influence on the fund’s near-term movement than the smaller residual holdings.

For investors, the main takeaway is that the portfolio looks spread out, but not indifferent to credit selection. The presence of government securities, receivables and multiple large debt issuers may help smooth the path, although it also means returns will remain linked to interest-rate and spread conditions rather than to one isolated position.

To see all holdings, visit the Aditya Birla SL Banking & PSU Debt Fund Direct Growth Plan page

Source data date: as of 03 Sep 2026

Who should invest

This fund fits investors who are comfortable with Medium Risk debt exposure and want a horizon long enough to ride through uneven short-term periods. The 1-year result is below the stronger peer numbers shown here, but the 3-year and 5-year figures point to a steadier longer-run profile.

The main trade-off is between stability and standout upside. The benchmark comparison shows the fund can hold up well in weaker stretches, yet the longer record is close to the benchmark rather than far ahead of it. Investors who want a credit-aware debt allocation and can accept moderate return variation may find the profile more relevant than those looking for a clearly dominant return track.

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

No exit load after holding period.

Source data date: as of 03 Sep 2026

Frequently asked questions

What is the current NAV of Aditya Birla SL Banking & PSU Debt Fund Direct Growth Plan?
The current NAV is ₹404.4722, as of 03 September 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 5.47% for 1 year, 7.13% for 3 years and 6.26% for 5 years.

How has the fund performed against the benchmark?
It has been ahead of the benchmark over 1 month, 3 months, 1 year and 3 years, while the 5-year return is almost identical to the benchmark.

How does it compare with the peer funds shown here?
Its 1-year return is lower than several listed peers, but its 3-year and 5-year figures remain broadly competitive within the peer set.

What is the minimum SIP amount?
The minimum SIP amount is ₹1,000.

Who manages the fund and what is the exit load?
The fund is managed by Kaustubh Gupta and Harshil Suvarnkar. No exit load applies after the holding period.

Bottom line

This fund has a steadier long-term profile than its recent-year return suggests. It has kept pace with the benchmark over five years, outpaced it over 1 year and 3 years, and stayed reasonably close to many peer returns, though the latest 12-month figure is softer than several alternatives. The portfolio is spread across many holdings, with a modestly concentrated top slice and a long tail of smaller positions, which may support a more even debt profile. It looks most suitable for conservative investors who want banking and PSU debt exposure and can accept moderate variability in exchange for stability.

Published on 4 September 2026 at 1:28 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.