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

HDFC Banking and PSU Debt Fund Direct Growth Plan has a NAV of ₹25.5366 as of 10 Sep 2026 and a scheme AUM of ₹5,186 Cr. Its 1-year, 3-year and 5-year returns are 5.45%, 7.2% and 6.3%, and the scheme carries a Medium Risk tag. Our view is that it suits investors looking for a debt portfolio with a steady return profile rather than sharp short-term moves.

The fund has held up better over medium and longer horizons than its recent month-to-month behaviour suggests, and its portfolio is tilted toward banking and PSU-linked debt exposures. That mix can appeal to conservative investors who want a relatively stable credit-oriented allocation and can stay invested long enough for the compounding pattern to matter.

Quick facts

Particular	Details
NAV	₹25.5366 as of 10 Sep 2026
AUM	₹5,186 Cr
Expense Ratio	0.39%
Launch Date	26 Mar 2014
Min SIP	₹100
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load after holding period
Fund Managers	Anil Bamboli

The fund is managed by Anil Bamboli.

Source data date: as of 10 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-0.05%	-4.06%
3M	1.48%	1.37%
1Y	5.45%	-7.31%
3Y	7.2%	6.07%
5Y	6.3%	5.91%

The recent month has been mildly negative for the fund, but the decline is shallow compared with the benchmark’s weaker move over the same period. Over three months, both the fund and benchmark have been positive, with the fund holding a small edge. That pattern tells us the short-term path has not been smooth, but it has been more resilient than the benchmark in the latest month.

The 1-year picture is much stronger for the fund, especially because the benchmark is negative over that period. That gap suggests the fund has preserved capital better through a difficult year for the benchmark rather than simply tracking market direction. It is a useful signal for investors who care about relative stability.

Over 3 years and 5 years, the fund remains ahead of the benchmark, and the gap is wider at 3 years than at 5 years. That tells us the longer-term compounding story is constructive, even though the path has not been linear. The time pattern in the return series also points to periodic swings, which is normal in a debt fund with credit exposure, but the longer-horizon trend still looks orderly enough for patient investors.

Source data date: as of 10 Sep 2026

Should you BUY or HOLD HDFC 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 HDFC Banking and PSU Debt? Thinking of investing now?

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Peer comparison

Fund	1Y return	3Y return	5Y return
HDFC Banking and PSU Debt Fund Direct Growth Plan	5.45%	7.2%	6.3%
TRUSTMF Banking & PSU Fund Direct Growth Plan	7.26%	7.52%	6.17%
Franklin India Banking & PSU Debt Fund Direct Growth Plan	6.69%	7.58%	6.45%
UTI Banking & PSU Debt Fund Direct Growth Plan	6.27%	7.46%	7.72%
Bandhan Banking and PSU Debt Fund Direct Growth Plan	6.03%	7.21%	6.25%
ICICI Pru Banking and PSU Debt Fund Direct Growth Plan	6%	7.38%	6.7%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On recent numbers, the fund trails the stronger peer 1-year returns, though its own 1-year figure is still better than the benchmark. Over 3 years, it stays within the same broad return band as the peers, while the 5-year figure is competitive but not the strongest among the available peer data. The short-term picture is less impressive than the longer-term one, so our reading is that the fund’s appeal lies more in its steadier multi-year profile than in standout near-term momentum.

Source data date: as of 10 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
7.46% Indian Railways Finance Corp. Ltd.^	Corporate Debt	5.3%
Net Current Assets	Cash & Cash Equivalents and Net Assets	3.55%
7.57% Indian Railways Finance Corp. Ltd.^	Corporate Debt	2.9%
8.1% Bajaj Housing Finance Ltd.	Corporate Debt	2.9%
7.55% REC Limited.^	Corporate Debt	2.89%
8.41% Housing and Urban Development Corporation Ltd.^	Corporate Debt	2.47%
7.97% HDFC Bank Ltd.£^	Corporate Debt	2.42%
7.59% National Housing Bank^	Corporate Debt	2.41%
7.62% National Bank for Agri & Rural Dev.	Corporate Debt	2.41%
7.64% Power Finance Corporation Ltd.	Corporate Debt	2.4%

The largest disclosed holding is 7.46% Indian Railways Finance Corp. Ltd.^ at 5.3%, and the next several positions step down fairly gradually rather than dropping sharply. By the tenth holding, the weight is still 2.4%, which suggests the top slice is spread across several similar-sized positions instead of being dominated by one outsized bet.

The top 10 holdings account for approximately 29.65% of the portfolio, so the disclosed book is not extremely concentrated in the few largest positions. At the same time, there are 59 disclosed holding rows in total, which points to a longer tail beyond the visible top 10. Our view is that this structure may make the fund less dependent on a single line item, while still leaving the largest names likely to have greater influence on returns than the smaller positions.

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

Source data date: as of 10 Sep 2026

Who should invest

This fund fits investors who are comfortable with medium risk and want a debt-oriented allocation that has shown a steadier longer-term return pattern than its benchmark. The 1-year return is more modest than the 3-year and 5-year numbers, so the fund looks better suited to an investment horizon that allows time for the underlying credit mix to play out.

The main trade-off is that the portfolio is not built for excitement; it is built for relative steadiness and moderate compounding. Compared with the benchmark, the fund has looked stronger across the available horizons, but it still carries the return variability that comes with its portfolio mix. That makes it more appropriate for investors who can tolerate some movement in the short run in exchange for a measured multi-year profile.

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 10 Sep 2026

Frequently asked questions

What is the current NAV of HDFC Banking and PSU Debt Fund Direct Growth Plan?
Its NAV is ₹25.5366 as of 10 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 5.45% over 1 year, 7.2% over 3 years and 6.3% over 5 years.

How has it performed versus the benchmark?
It has outperformed the benchmark across all three key horizons shown here. The gap is especially clear over 1 year, where the benchmark return is negative while the fund remains positive.

How does it compare with the peer funds listed here?
Its 1-year return is below the stronger peer figures, but its 3-year and 5-year numbers remain broadly competitive within the peer set. The longer-term picture is steadier than the short-term one.

What is the minimum SIP amount?
The minimum SIP amount is ₹100.

Who manages the fund and what is the exit load?
Anil Bamboli manages the fund. No exit load applies after the holding period.

Bottom line

HDFC Banking and PSU Debt Fund Direct Growth Plan looks more convincing on its multi-year record than on its latest short-term patch. It has stayed ahead of the benchmark across the visible horizons, and its peer comparison is broadly solid even if some peers have stronger 1-year numbers. The risk profile is medium, and the portfolio leans toward debt names that may help it maintain a steadier pattern over time. That combination makes it a reasonable fit for investors who want a conservative-leaning debt allocation with patience for uneven month-to-month movement.

Published on 11 September 2026 at 1:34 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.