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 an NAV of ₹2,899.6612 as of 08 Sep 2026 and an AUM of ₹12,003 Cr. Its 1-year, 3-year and 5-year returns are 5.5%, 7.08% and 6.19% respectively, and the scheme sits in the Medium Risk category. Our view is that this is a steady debt fund for investors who want banking-and-PSU-style credit exposure with a measured return profile rather than sharp swings.

The recent return pattern is modest, but the longer-term record has remained reasonably consistent. With a large portfolio and low expense ratio, the fund may suit conservative investors who can stay invested long enough for debt-market compounding to matter.

Quick facts

Particular	Details
NAV	₹2,899.6612 as of 08 Sep 2026
AUM	₹12,003 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 08 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-0.01%	-3.86%
3M	1.54%	1.69%
1Y	5.5%	-5.72%
3Y	7.08%	6.3%
5Y	6.19%	6.05%

The fund has held up better than the benchmark over the 1-year period, while the benchmark has been weaker over the same horizon. That gap matters because it shows the fund cushioning the volatility that has affected the benchmark more sharply in the near term.

At the shorter end, the 1-month figure is close to flat and the 3-month return is positive but not strong. That suggests the fund has not relied on a single sharp burst of performance; instead, returns have come through in a steadier way.

Over 3 years and 5 years, the fund remains ahead of the benchmark on the available numbers. The 3-year return of 7.08% and 5-year return of 6.19% point to a stable compounding profile, though the gap versus the benchmark is not wide over 5 years. Our view is that this is more of a consistency story than a high-momentum story.

The time pattern also shows that the fund has gone through stretches of softer movement, but it has preserved its longer arc better than the benchmark. For debt investors, that kind of pattern can be more useful than a dramatic short-term spike, especially when the aim is controlled participation in credit and rate movements.

Source data date: as of 08 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.

Already holding Axis Banking and PSU Debt? Thinking of investing now?

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Peer comparison

Fund	1Y return	3Y return	5Y return
Axis Banking and PSU Debt Fund Direct Growth Plan	5.5%	7.08%	6.19%
TRUSTMF Banking & PSU Fund Direct Growth Plan	7.26%	7.52%	6.17%
Franklin India Banking & PSU Debt Fund Direct Growth Plan	6.77%	7.59%	6.45%
UTI Banking & PSU Debt Fund Direct Growth Plan	6.3%	7.45%	7.71%
Bandhan Banking and PSU Debt Fund Direct Growth Plan	6.04%	7.23%	6.26%
ICICI Pru Banking and PSU Debt Fund Direct Growth Plan	5.98%	7.39%	6.72%

On the 1-year figure, this fund trails the stronger peer returns available in the group, though it still stays close to the middle of the pack on the numbers provided. That tells us the recent phase has been respectable rather than standout.

Over 3 years, the fund is broadly in line with several peers and sits just behind the strongest 3-year return in the set. On 5 years, it is also competitive, but one peer has a clearly stronger long-run number while another is close behind. This means the fund’s recent edge over the benchmark does not fully translate into a clear lead over peers on every timeframe. This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

Source data date: as of 08 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 largest holding is 7.44% National Bank for Agriculture and Rural Development (24/02/2028) at 6.81%, which gives a clear anchor to the portfolio. The tenth holding is 6.80% National Housing Bank (02/04/2032) ** at 1.82%, so the weight drops meaningfully from the first row to the tenth.

The displayed holdings together account for approximately 30% of the portfolio, which suggests that a meaningful part of the scheme is spread beyond these ten positions. With 60 disclosed holding rows in total, the fund may have a fairly extended tail even though the top names still matter.

That mix points to a portfolio where a few larger debt exposures could influence returns more than the smaller positions, but not in a way that looks excessively narrow. The combination of corporate debt, government securities and cash-like assets may help balance carry and liquidity, while the top holdings remain important for the fund’s behaviour.

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

Source data date: as of 08 Sep 2026

Who should invest

This fund may suit investors with a conservative-to-moderate risk appetite who are comfortable with debt-market movements and credit exposure. The Medium Risk label and the mostly steady longer-term return path suggest it is better suited to investors who can hold for multiple years rather than react to short-term fluctuations.

The main trade-off is between steadiness and upside. The fund has done better than the benchmark over the 1-year period and has kept a respectable longer-term record, but it has not produced aggressive growth. Investors who want controlled exposure to banking and PSU debt, with a focus on consistency over excitement, are the better fit here.

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 08 Sep 2026

Frequently asked questions

What is the current NAV of Axis Banking and PSU Debt Fund Direct Growth Plan?
The current NAV is ₹2,899.6612 as of 08 Sep 2026.

What are the 1-year, 3-year and 5-year returns?
The fund’s returns are 5.5% for 1 year, 7.08% for 3 years and 6.19% for 5 years.

How does the fund compare with its benchmark?
It has beaten the benchmark over 1 year, 3 years and 5 years on the figures provided. The 1-year gap is especially noticeable because the benchmark return is negative over that period.

How does it compare with peer funds?
Its recent return is below the stronger peer numbers in the set, while the 3-year and 5-year figures stay broadly competitive. The picture is mixed: the fund is not the strongest on every horizon, but it remains close enough to several peers on the longer periods.

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. The exit load is shown as no exit load after the holding period.

Bottom line

Axis Banking and PSU Debt Fund Direct Growth Plan looks like a steadier debt option rather than a high-variation return seeker. Its recent return is modest but better than the benchmark, and its 3-year and 5-year numbers show a consistent, if unspectacular, compounding pattern. Compared with peers, the fund is competitive but not dominant across every horizon. The portfolio’s top names are meaningful, yet the overall holding base is wide enough to suggest a longer tail behind the leading positions, which may help keep the scheme diversified within its debt framework.

Published on 9 September 2026 at 3:28 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.