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

Canara Rob Banking and PSU Debt Fund Direct Growth Plan has a NAV of ₹12.8937 as of 16 Sep 2026 and an AUM of ₹167 Cr. Its 1-year, 3-year and 5-year returns are 4.85%, 6.61% and Data not available, and the risk category is Medium Risk. Our view is that this looks better suited to conservative investors who want debt exposure with a banking-and-PSU tilt, rather than those looking for consistently high short-term gains.

The fund has stayed close to a modest compounding path, with recent performance better than the benchmark over 1 year and 3 years. The portfolio is led by high-quality debt issuers and is concentrated in a limited set of holdings, which can support visibility but also makes each position more important.

Quick facts

Particular	Details
NAV	₹12.8937 as of 16 Sep 2026
AUM	₹167 Cr
Expense Ratio	0.38%
Launch Date	22 Aug 2022
Min SIP	₹1,000
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Suman Prasad, Avnish Jain

The fund is managed by Suman Prasad and Avnish Jain.

Source data date: as of 16 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-0.26%	-4.41%
3M	0.99%	-3.60%
1Y	4.85%	-7.76%
3Y	6.61%	5.74%
5Y	Data not available	Data not available

The recent picture is steady rather than exciting. Over 1 month, the fund was slightly negative, but the drop was mild compared with the benchmark’s sharper decline. Over 3 months, the fund turned positive while the benchmark remained negative, which suggests the scheme handled the period better than the broad market proxy used here.

The 1-year return stands out more clearly. At 4.85%, the fund stayed in positive territory while the benchmark was negative over the same stretch. That gap matters because it shows the scheme has offered a more defensive profile in a difficult market backdrop rather than simply matching the market’s direction.

Longer term, the 3-year return of 6.61% is a little ahead of the benchmark’s 5.74%. That is not a wide lead, but it does show the fund has compounded at a reasonable pace rather than relying only on short bursts of performance. Since the fund launched in 2022, there is still not enough history to build a full 5-year read.

For investors, the important point is that the recent path and the 3-year trend are broadly aligned: gradual gains, lower day-to-day movement than the benchmark, and no sign of aggressive return chasing. In our view, that makes the scheme more relevant for stability-minded debt investors than for those seeking standout upside.

Source data date: as of 16 Sep 2026

Should you BUY or HOLD Canara Rob 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
Canara Rob Banking and PSU Debt Fund Direct Growth Plan	4.85%	6.61%	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. On the available return figures, the fund trails the peer set over 1 year, where the leading peers are clearly ahead on the same period. The 3-year gap is smaller, and that tells us the scheme has kept pace better over time than it has in the very recent window.

The 5-year column is more useful for the peer group than for this fund, because the current scheme does not yet have a 5-year history. Among peers with a 5-year figure, the returns cluster in the mid-single digits to upper-single digits, so the fund’s shorter history does not yet let us compare it on that horizon. Overall, the short-term picture looks weaker than peers, while the medium-term picture is closer.

Source data date: as of 16 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
7.65% Indian Railway Finance Corporation Ltd (30/12/2032) **	Corporate Debt	9.00%
7.44% Small Industries Development Bank of India (04/09/2026) **	Corporate Debt	8.96%
7.25% Indian Oil Corporation Ltd (06/01/2030) **	Corporate Debt	8.94%
6.85% National Bank for Agriculture & Rural Development (21/03/2031) **	Corporate Debt	8.71%
8.44% HDFC Bank Ltd (28/12/2028) **	Corporate Debt	6.06%
8.12% Bajaj Finance Ltd (10/09/2027)	Corporate Debt	5.99%
7.35% NHPC Ltd (15/09/2026) **	Corporate Debt	5.98%
7.68% Power Finance Corporation Ltd (15/07/2030) **	Corporate Debt	5.98%
7.68% LIC Housing Finance Ltd (29/05/2034) **	Corporate Debt	5.90%
6.73% Hindustan Petroleum Corporation Ltd (29/04/2030) **	Corporate Debt	5.86%

The top 10 holdings account for approximately 71.38% of the portfolio.

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

The largest holding is 7.65% Indian Railway Finance Corporation Ltd (30/12/2032) ** at 9.00%, so it is large enough to matter but not so large that it dominates the entire book on its own. The tenth holding is still 5.86%, which shows the portfolio does not fall off sharply after the first few names.

That said, the spread from the largest to the tenth holding is only a little over 3 percentage points, so influence is still shared among a small set of positions. With 71.38% of the portfolio in the displayed top 10 and 19 total holdings disclosed, the fund appears fairly concentrated in its main credit exposures, while the rest of the book likely acts as a longer tail rather than the core driver.

For investors, that mix may be acceptable if they are comfortable with a portfolio where a handful of issuers could have greater influence on outcomes. It may also help explain why the fund’s return path has been relatively orderly rather than sharply volatile.

Source data date: as of 16 Sep 2026

Who should invest

This fund is most relevant for investors who are comfortable with Medium Risk and want a debt scheme that has delivered moderate compounding rather than aggressive upside. The 1-year and 3-year returns both stay positive, and the fund has also held up better than the benchmark over the same windows, which supports a conservative allocation case.

The main trade-off is concentration and modest return potential. The portfolio leans heavily on a limited number of debt holdings, so investors need to be comfortable with issuer-level influence. In our view, this fits a medium-horizon investor who values steadier behaviour and can accept that returns may remain moderate even when markets are uneven.

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 16 Sep 2026

Frequently asked questions

What is the current NAV of Canara Rob Banking and PSU Debt Fund Direct Growth Plan?

The current NAV is ₹12.8937 as of 16 Sep 2026.

How has the fund performed over 1 year and 3 years?

Its 1-year return is 4.85% and its 3-year return is 6.61%. Both numbers are positive, which points to steady medium-term compounding rather than sharp swings.

What is the 5-year return of this fund?

Data not available. The scheme launched in August 2022, so there is not yet a full 5-year track record to report.

How does the fund compare with the benchmark?

The fund has outperformed the benchmark over 1 year and 3 years. It also held up better over 1 month and 3 months, which suggests a steadier path in the recent period.

What are the fund managers and expense ratio?

The fund is managed by Suman Prasad and Avnish Jain. The expense ratio is 0.38%.

What does the portfolio look like and is there an exit load?

The portfolio is led by corporate debt holdings, with the top 10 positions accounting for 71.38% of the portfolio. There is no exit load.

Bottom line

Canara Rob Banking and PSU Debt Fund Direct Growth Plan has shown a steadier short-term and medium-term pattern than its benchmark, with positive 1-year and 3-year returns. The peer comparison is less flattering on the recent window, but the gap narrows over 3 years, so the story is not one of persistent weakness. Its Medium Risk label, concentrated debt-heavy portfolio and no exit load make it a fund for investors who are comfortable with moderate returns and issuer concentration, rather than for those seeking standout upside.

Published on 17 September 2026 at 3:53 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.