Axis Banking and PSU Debt Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Axis Banking and PSU Debt Fund Direct Growth Plan has a NAV of ₹2,895.9801 as of 03 September 2026 and an AUM of ₹12,258 Cr. Its 1-year, 3-year and 5-year returns are 5.55%, 7.06% and 6.17%, and the fund sits in the Medium Risk category. Our view is that it suits investors who want a debt allocation with a steady long-term profile, but who can still accept some movement in the shorter run.

The fund has stayed broadly stable over time, with returns that are better anchored over 3 years and 5 years than over the latest 1 year. The portfolio is built mainly around banking and PSU-style credit exposure, which supports a conservative debt profile, though the medium-risk label means it is not a pure capital-preservation product.

Quick facts

Particular	Details
NAV	₹2,895.9801 as of 03 Sep 2026
AUM	₹12,258 Cr
Expense Ratio	0.34%
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	Aditya Pagaria, Hardik Shah

The fund is managed by Aditya Pagaria and Hardik Shah.

Source data date: as of 03 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.09%	-3.01%
3M	2.15%	1.95%
1Y	5.55%	-4.4%
3Y	7.06%	5.74%
5Y	6.17%	6.27%

The latest 1-month and 3-month numbers point to a fairly steady short-term pattern, with the fund remaining positive in both periods. That matters because the benchmark has been weaker over the last month and only slightly positive over 3 months, while the fund has held a clearer upward bias.

Over 1 year, the contrast is sharper. The fund’s 5.55% return came while the benchmark was negative, so the scheme has clearly held up better in the recent one-year window. That does not make the path smooth, though, because the 1-year pattern also shows periods of fluctuation rather than a straight line.

The 3-year return of 7.06% suggests the fund has compounded at a moderate pace over a longer cycle. It is ahead of the benchmark over that period, which supports the case that the portfolio has added value beyond a passive market reference.

The 5-year picture is more balanced. The fund’s 6.17% return is close to the benchmark’s 6.27%, so the longer record is less about outperformance and more about consistency. Our view is that this is a fund with a steadier long-term profile than its very recent benchmark comparison alone would suggest.

Source data date: as of 03 Sep 2026

Should you BUY or HOLD Axis 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.

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Peer comparison

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

Fund	1Y return	3Y return	5Y return
Axis Banking and PSU Debt Fund Direct Growth Plan	5.55%	7.06%	6.17%
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%

The fund trails the stronger 1-year peer numbers here, but the gap is not extreme. Its 1-year return is below TRUSTMF, Franklin India, UTI, Bandhan and ICICI Pru, so the recent stretch looks somewhat softer than the better peer outcomes.

On 3-year returns, the fund is competitive but not the strongest in this set. It sits near the middle of the available peer range, with Franklin India and TRUSTMF slightly ahead and UTI also above it. Over 5 years, the picture is similar: the fund is close to one peer, behind UTI and Franklin India, and ahead of Bandhan. That mix suggests the short-term and longer-term comparisons tell a consistent story of moderate, not standout, relative performance.

Source data date: as of 03 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
7.44% National Bank for Agriculture and Rural Development (24/02/2028)	Corporate Debt	6.81%
7.7% Nuclear Power Corporation of India Limited (21/03/2038) **	Corporate Debt	3.34%
7.42% Power Finance Corporation Limited (15/04/2028) **	Corporate Debt	3.28%
7.4% Small Industries Dev Bank of India (18/06/2031) **	Corporate Debt	3.16%
6.54% Tamilnadu State Development Loans (25/02/2029)	Government Securities	2.7%
Net Receivables / (Payables)	Cash & Cash Equivalents and Net Assets	2.43%
7.69% REC Limited (31/03/2033) **	Corporate Debt	2.37%
7.34% Small Industries Dev Bank of India (26/02/2029) **	Corporate Debt	2.15%
Clearing Corporation of India Ltd	Cash & Cash Equivalents and Net Assets	1.94%
6.80% National Housing Bank (02/04/2032) **	Corporate Debt	1.82%

The top 10 holdings account for approximately 30% of the portfolio.

To see all holdings, visit the Axis Banking and PSU Debt Fund Direct Growth Plan page

The largest holding is 7.44% National Bank for Agriculture and Rural Development (24/02/2028), at 6.81% of the portfolio. That is a meaningful single-line exposure, but it is not large enough on its own to dominate the scheme.

Weights step down fairly quickly after the first position, with the tenth holding at 1.82%. That gap between the largest and tenth holding suggests the portfolio is spread across multiple credit lines rather than leaning heavily on just one or two names.

Because the displayed top 10 together account for about 30% of the portfolio, the scheme appears to keep a sizable balance in the longer tail of holdings. With 60 disclosed holdings in total, our view is that the fund may be diversified across many smaller positions even though a few larger holdings could still have greater influence on returns.

Source data date: as of 03 Sep 2026

Who should invest

This fund is better suited to investors who are comfortable with a Medium Risk debt scheme and want a holding period long enough to let the return pattern play out. The 1-year result is softer than the 3-year record, while the 5-year outcome shows a steadier, more mature profile against the benchmark.

The main trade-off is that investors get a portfolio built around banking and PSU debt exposure, which may help stability, but they still need to accept some fluctuation and do not get the smoother profile of the lowest-risk debt options. It is more suitable as a core debt allocation for patients investors than as a short-term parking place.

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 Axis Banking and PSU Debt Fund Direct Growth Plan?

The current NAV is ₹2,895.9801 as of 03 September 2026.

What are the 1-year, 3-year and 5-year returns?

The fund’s returns are 5.55% over 1 year, 7.06% over 3 years and 6.17% over 5 years.

How does the fund compare with its benchmark?

It has been ahead of the benchmark over 1 year and 3 years, while the 5-year return is close to the benchmark’s 5-year return. That points to a fund that has generally held up well without showing a wide long-run gap.

How does it compare with peer funds on recent returns?

Its 1-year return is below the stronger peer figures in the comparison set, and its 3-year and 5-year returns sit in the middle of the available peer range. The pattern looks competitive, but not dominant, on relative returns.

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 Aditya Pagaria and Hardik Shah. No exit load applies after the holding period.

Bottom line

Axis Banking and PSU Debt Fund Direct Growth Plan shows a clearer long-term profile than its latest 1-year result, and it has also compared well with the benchmark over the shorter windows. Relative to peers, the recent outcome is a bit softer, while the longer record remains broadly competitive. The portfolio is built around credit and government-debt positions rather than a highly concentrated single-name structure, which may help stability. Our view is that it fits investors seeking a medium-risk debt allocation with patience for medium-to-long horizons.

Published on 4 September 2026 at 5:22 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.