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

Bajaj Finserv Banking and PSU Debt Fund Direct Growth Plan currently has a NAV of ₹12.2322 as of 17 Sep 2026 and manages ₹368 Cr. Its 1-year, 3-year and 5-year returns are 5.07%, Data not available and Data not available, and the scheme is tagged with a Balanced Risk profile. Our view is that it fits investors looking for a debt-oriented option with steadier recent movement than the benchmark, while still accepting that the longer track record is limited because the scheme launched only on 13 Nov 2023.

For investors, the main appeal is the portfolio’s mix of government-related and high-quality financial holdings, which can support relative stability. The trade-off is that returns are modest and the fund has not yet built a long enough history for 3-year or 5-year return comparisons.

Quick facts

Particular	Details
NAV	₹12.2322 as of 17 Sep 2026
AUM	₹368 Cr
Expense Ratio	0.34%
Launch Date	13 Nov 2023
Min SIP	₹1,000
Risk Category	Balanced Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Siddharth Chaudhary, Nimesh Chandan

The fund is managed by Siddharth Chaudhary and Nimesh Chandan.

Source data date: as of 17 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.05%	-3.66%
3M	1.11%	-3.71%
1Y	5.07%	-7.13%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The recent pattern has been firmer than the benchmark across all reported windows. Over 1 month, the fund was nearly flat while the benchmark was weaker; over 3 months, the fund stayed positive and the benchmark remained negative. That gap matters because it points to a calmer short-term experience than the benchmark, even though the absolute returns are not large.

The 1-year figure is the clearest useful read on this scheme today. A 5.07% return against a -7.13% benchmark return suggests the portfolio held up better over the period, which is consistent with a debt fund that is trying to control volatility rather than chase upside. The time pattern also looks uneven rather than smoothly trending, so we would treat the recent run as steady but not especially strong.

Longer-term interpretation is limited by the scheme’s age. There is no 3-year or 5-year history to study yet, so the 1-year record carries much more weight than older-cycle analysis would for an established income fund. In our view, that makes the fund easier to assess for near-term behaviour than for full market-cycle durability.

Source data date: as of 17 Sep 2026

Should you BUY or HOLD Bajaj Finserv 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

Fund	1Y return	3Y return	5Y return
Bajaj Finserv Banking and PSU Debt Fund Direct Growth Plan	5.07%	Data not available	Data not available
TRUSTMF Banking & PSU Fund Direct Growth Plan	7.26%	7.52%	6.17%
Franklin India Banking & PSU Debt Fund Direct Growth Plan	6.42%	7.51%	6.41%
UTI Banking & PSU Debt Fund Direct Growth Plan	6.19%	7.42%	7.71%
Bandhan Banking and PSU Debt Fund Direct Growth Plan	5.83%	7.15%	6.23%
ICICI Pru Banking and PSU Debt Fund Direct Growth Plan	5.69%	7.21%	6.62%

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

Against the five peer funds listed here, this scheme’s 1-year return is lower than each available peer return, so the recent relative picture is softer than the group shown. The shorter history also means the 3-year and 5-year fields cannot be compared yet, while the peers provide fuller long-term context.

Where the comparison becomes interesting is in the contrast between recent behaviour and what older peer records suggest. Several peers have delivered stronger multi-year results, but this fund has also shown a more restrained short-term pattern versus the benchmark, which can appeal to investors who value consistency over headline upside. The key takeaway is that the fund’s current record looks less established than the peers, even though its benchmark-relative movement has been reasonable.

Source data date: as of 17 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Clearing Corporation of India Ltd	Cash & Cash Equivalents and Net Assets	15.41%
8.54% REC Limited (15/11/2028) **	Corporate Debt	6.93%
7.7% National Highways Authority of India (13/09/2029) **	Corporate Debt	6.85%
National Bank for Agriculture and Rural Development (10/09/2026) **	Commercial Paper	6.78%
7.42% Power Finance Corporation Limited (15/04/2028) **	Corporate Debt	6.77%
7.23% Housing & Urban Development Corporation Limited (18/07/2029) **	Corporate Debt	6.75%
7.6% Food Corporation of India (09/01/2030) **	Corporate Debt	6.75%
HDFC Bank Limited (01/10/2026)	Certificate of Deposit	6.75%
7.299% Kotak Mahindra Prime Limited (22/09/2028)	Corporate Debt	6.71%
Indian Bank (10/12/2026)**	Certificate of Deposit	6.67%

The top 10 holdings account for approximately 76.37% of the portfolio.

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

The largest position is Clearing Corporation of India Ltd at 15.41%, which is materially higher than any other disclosed holding. After that, weights cluster tightly in the 6.67% to 6.93% band, so the gap from the first holding to the tenth is quite steep. That pattern suggests the portfolio may be shaped by one very large liquidity-style exposure and a broad set of mid-sized credit exposures.

Because the top 10 disclosed holdings make up 76.37% of the portfolio and the scheme has 20 disclosed holdings in total, the visible book looks meaningfully concentrated rather than evenly spread. That does not automatically make it risky in a debt-fund sense, but it does mean a small number of positions could have greater influence on short-term behaviour. The mix also leans heavily toward sovereign-linked and financial-sector instruments, which may support a more stable profile than a lower-quality credit mix.

Source data date: as of 17 Sep 2026

Who should invest

This fund is best suited to investors who are comfortable with a Balanced Risk profile and want debt-style exposure rather than equity-style growth. The 1-year result is positive, but the scheme is still too young for a 3-year or 5-year record, so investors need to be comfortable relying more on the current pattern than on a full cycle history.

The benchmark comparison suggests the fund has held up better than the index in recent periods, which may appeal to investors seeking steadier behaviour. The trade-off is that the recent return level is moderate, and the portfolio concentration means a few holdings could matter more than a very broad spread of exposures. We see it as more appropriate for medium- to longer-horizon investors who value stability over aggressive return chasing.

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 17 Sep 2026

Frequently asked questions

What is the current NAV of Bajaj Finserv Banking and PSU Debt Fund Direct Growth Plan?

The current NAV is ₹12.2322 as of 17 Sep 2026.

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

The fund’s 1-year return is 5.07%, while the 3-year and 5-year returns are Data not available.

How has the fund performed versus its benchmark?

The fund has outpaced the benchmark in each reported period. For example, the 1-year return is 5.07% versus -7.13% for the benchmark.

How does it compare with the listed peer funds?

Its 1-year return is below the listed peer funds, which range from 5.69% to 7.26%. The peers also have longer 3-year and 5-year histories available.

What is the minimum SIP amount?

The minimum SIP amount is ₹1,000.

What are the risk profile, managers and exit load?

The scheme carries a Balanced Risk profile and is managed by Siddharth Chaudhary and Nimesh Chandan. It has no exit load.

Bottom line

This fund’s recent performance is steadier than the benchmark, but its longer-term record is still developing because it launched in late 2023. Compared with the listed peers, its 1-year return is weaker, while the portfolio is anchored by a concentrated set of debt and money-market positions led by a large cash-equivalent holding. Our view is that it may suit investors seeking a more measured debt allocation with moderate returns and a Balanced Risk profile rather than those looking for a long, fully tested history.

Published on 18 September 2026 at 10:18 AM 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.