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

ICICI Pru Banking and PSU Debt Fund Direct Growth Plan has a NAV of ₹36.5404 as of 04 Sep 2026 and an AUM of ₹8,667 Cr. Its 1-year, 3-year and 5-year returns are 6.03%, 7.37% and 6.73%, and the scheme is in the Medium Risk category.

Our view is that this is a steady income-oriented debt fund rather than a return-chasing one. The portfolio is built around banking, PSU and government-linked debt, which fits conservative investors who want a relatively stable debt allocation and can stay invested through modest return swings.

Quick facts

Particular	Details
NAV	₹36.5404 as of 04 Sep 2026
AUM	₹8,667 Cr
Expense Ratio	0.39%
Launch Date	13 Mar 2013
Min SIP	₹100
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load after holding period
Fund Managers	Manish Banthia, Rohit Lakhotia

The fund is managed by Manish Banthia and Rohit Lakhotia.

Source data date: as of 04 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.19%	-2.95%
3M	2.07%	2.27%
1Y	6.03%	-4.43%
3Y	7.37%	5.88%
5Y	6.73%	6.29%

The recent 1-month and 3-month figures show a calm pattern rather than a sharp move, which is what we would expect from a debt fund focused on banking and PSU exposure. Over the last year, the fund has been positive while the benchmark was negative, so the fund clearly held up better through the period.

The 3-year number stays firm at 7.37%, which suggests the fund has still been able to compound at a reasonable pace over a fuller cycle. The 5-year return of 6.73% is close to the benchmark’s 6.29%, so the longer view is more about preserving a stable credit-led return stream than about creating a wide performance gap.

The time pattern also points to a fund that has recovered after weaker stretches without showing outsized jumps. That fits a conservative income profile: the experience may not look dramatic month to month, but the return path has been more orderly than the benchmark in the most recent year.

Compared with the benchmark, the fund is ahead over 1 year and 3 years, and modestly ahead over 5 years. In our view, that mix says more about consistency than aggression.

Source data date: as of 04 Sep 2026

Should you BUY or HOLD ICICI Pru 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
ICICI Pru Banking and PSU Debt Fund Direct Growth Plan	6.03%	7.37%	6.73%
TRUSTMF Banking & PSU Fund Direct Growth Plan	7.26%	7.52%	6.17%
Franklin India Banking & PSU Debt Fund Direct Growth Plan	6.78%	7.57%	6.43%
UTI Banking & PSU Debt Fund Direct Growth Plan	6.33%	7.44%	7.7%
Bandhan Banking and PSU Debt Fund Direct Growth Plan	6.09%	7.22%	6.24%

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

The fund’s 1-year return sits below TRUSTMF, Franklin India and UTI, but it remains close to Bandhan. Over 3 years, it stays in the same general band as the peer set and is only slightly behind Franklin India while slightly ahead of UTI and Bandhan.

The 5-year picture is more mixed. It is ahead of TRUSTMF, Franklin India and Bandhan on this horizon, while UTI leads on the same measure. So the short-term comparison is softer than the longer-term one, which suggests the fund has remained competitive over time even if the latest year is not the strongest in this group.

Source data date: as of 04 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
7.53% NABARD	Corporate Debt	4.32%
7.58% LIC Housing Finance Ltd. **	Corporate Debt	3.74%
6.9% Government Securities	Government Securities	3.34%
7.7% NABARD **	Corporate Debt	2.89%
6.6% Rural Electrification Corporation Ltd. **	Corporate Debt	2.87%
6.96% Power Finance Corporation Ltd. **	Corporate Debt	2.86%
Net Current Assets	Cash & Cash Equivalents and Net Assets	2.78%
7.57% State Government of Madhya Pradesh	Government Securities	2.53%
7.68% Small Industries Development Bank of India. **	Corporate Debt	2.31%
6.92% Power Finance Corporation Ltd. **	Corporate Debt	2.29%

The largest holding is 7.53% NABARD at 4.32%, and the tenth holding is still 6.92% Power Finance Corporation Ltd. ** at 2.29%. That is a fairly shallow drop from the top to the tenth position, which suggests the visible sleeve is spread across several similar-sized credit positions rather than dominated by one outsized bet.

The top 10 holdings account for approximately 29.93% of the portfolio, so the disclosed slice is meaningful but far from the whole scheme. With 70 disclosed holding rows in total, the portfolio may have a long tail beyond the largest names, which can help reduce the influence of any single position.

Because the fund holds a mix of corporate debt, government securities and cash equivalents in the top set, the allocation may cushion the impact of one security moving sharply. At the same time, the high number of disclosed holdings means the return profile is likely to depend on how several positions behave together rather than on one or two large exposures.

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

Source data date: as of 04 Sep 2026

Who should invest

This fund suits investors who are comfortable with Medium Risk and want a debt allocation that has shown steady medium-term compounding rather than explosive gains. The 1-year return has been better than the benchmark, while the 3-year and 5-year figures suggest the fund has remained reasonably steady through different periods.

Our view is that it fits a moderate investment horizon, especially for investors who value stability from banking and PSU debt exposure. The main trade-off is straightforward: you may accept lower upside than more aggressive debt or credit-oriented strategies in exchange for a more controlled return pattern.

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 04 Sep 2026

Frequently asked questions

What is the current NAV of ICICI Pru Banking and PSU Debt Fund Direct Growth Plan?

The current NAV is ₹36.5404 as of 04 Sep 2026.

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

The fund’s returns are 6.03% over 1 year, 7.37% over 3 years and 6.73% over 5 years.

How has the fund performed versus its benchmark?

It has done better than the benchmark over 1 year and 3 years, and slightly better over 5 years. The benchmark’s 1-year return is negative, while the fund has stayed positive.

How does it compare with the peer funds listed here?

Its 1-year return is below some peers and close to others, while the 3-year return sits in the same broad range as the group. Over 5 years, it is ahead of some peers and behind UTI Banking & PSU Debt Fund Direct Growth Plan.

Is there a minimum SIP amount?

The minimum SIP amount is ₹100.

Who manages the fund and what is the exit load?

The fund is managed by Manish Banthia and Rohit Lakhotia. There is no exit load after the holding period.

Bottom line

ICICI Pru Banking and PSU Debt Fund Direct Growth Plan looks like a steady debt option with a Medium Risk profile and a portfolio built around banking, PSU and government-linked exposures. Its recent return pattern is more modest than some peers on a 1-year basis, but its 3-year and 5-year figures show that it has remained competitive over time. For investors who want a relatively stable income-oriented debt allocation and can accept moderate return variation, this fund fits that brief well.

Published on 5 September 2026 at 3:43 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.