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

Sundaram Banking and PSU Debt Fund Direct Growth Plan had a NAV of ₹46.5735 as of 10 Sep 2026 and an AUM of ₹261 Cr. Its 1-year, 3-year and 5-year returns are 5.42%, 7.17% and 6.05%, and the scheme sits in the Medium Risk category.

Our view is that this is a fairly steady debt fund with a portfolio built around banking, PSU and allied corporate debt exposures. The recent numbers look stable rather than exciting, but the longer-run profile remains consistent with a conservative income-oriented allocation.

Quick facts

Particular	Details
NAV	₹46.5735 as of 10 Sep 2026
AUM	₹261 Cr
Expense Ratio	0.27%
Launch Date	09 Jan 2013
Min SIP	₹250
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load after holding period
Fund Managers	Sandeep Agarwal, Kumaresh Ramakrishnan, Ronak Shah

The fund is managed by Sandeep Agarwal, Kumaresh Ramakrishnan and Ronak Shah.

Source data date: as of 10 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.18%	-4.06%
3M	1.63%	1.37%
1Y	5.42%	-7.31%
3Y	7.17%	6.07%
5Y	6.05%	5.91%

The recent picture is better than the benchmark, especially over 1 month and 1 year. That matters because the benchmark has been weak over 1 year and 1 month, while the fund stayed positive and comparatively calmer. Even in the 3-month window, the fund held a small lead, which suggests the current trend has not been fragile.

The longer-term record is more moderate but still constructive. The 3-year return is above the benchmark, and the 5-year return is only slightly ahead, so this is not a fund that has pulled far away from its reference line. For a debt scheme, that kind of spacing matters: it points to steadier compounding rather than a sharp return cycle.

The time pattern also suggests some periods of pressure mixed with recovery. The return path over 3 years and 5 years does not move in a straight line, but the fund has preserved a positive long-run shape. That makes our view more favourable for investors who prefer consistency over aggressive upside in fixed-income allocation.

Overall, the recent period looks stronger than the benchmark, while the multi-year profile looks broadly in line with a disciplined debt strategy. The gap versus the benchmark is meaningful in the short run and smaller over longer horizons, which suggests the fund has added value more through steadiness than through a dramatic performance burst.

Source data date: as of 10 Sep 2026

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

Get your portfolio analysed for FREE by SEBI-registered Investment Adviser (RIA) through Univest MF Premium

Peer comparison

Fund	1Y return	3Y return	5Y return
Sundaram Banking and PSU Debt Fund Direct Growth Plan	5.42%	7.17%	6.05%
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 1-year return, the fund trails the stronger peer outcomes in this set, with several peers above 6% and one above 7%. That said, the gap is not extreme, and the fund still posts a positive figure in a year when the benchmark was negative. Over 3 years, the fund sits in the middle of the group on the available figures, with peers showing a fairly tight spread.

Over 5 years, the picture is mixed. The fund is below some peers such as UTI and Franklin, but ahead of Bandhan and close to ICICI Pru on the available return data. So the short-term peer comparison is less flattering than the longer-term comparison, which tells us the fund has been steadier than standout rather than a clear return leader.

Source data date: as of 10 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
HDFC Bank Ltd – 7.7% – 16/05/2028**	Corporate Debt	9.57%
National Housing Bank – 7.59% – 14/07/2027**	Corporate Debt	7.66%
Export Import Bank of India – 7.35% – 27/07/2028**	Corporate Debt	7.64%
Indian Oil Corporation Ltd – 7.44% – 25/11/2027**	Corporate Debt	5.75%
TREPS	Cash & Cash Equivalents and Net Assets	4.77%
National Bank for Agriculture & Rural Development – 7.53% – 24/03/2028	Corporate Debt	3.82%
Indian Railway Finance Corporation Ltd – 7.37% – 31/07/2029**	Corporate Debt	3.81%
National Bank for Financing Infrastructure and Development – 7.37% – 16/07/2029**	Corporate Debt	3.8%
Small Industries Development Bank of India – 7.42% – 12/03/2029**	Corporate Debt	3.8%
Power Finance Corporation Ltd – 6.73% – 15/10/2027**	Corporate Debt	3.79%

The top 10 holdings account for approximately 54.41% of the portfolio.

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

The largest holding is HDFC Bank Ltd – 7.7% – 16/05/2028** at 9.57%, which is large enough to matter but not so large that it dominates the fund on its own. The next few positions are also sizeable, with National Housing Bank and Export Import Bank of India both above 7%, and the drop to the tenth holding is fairly gradual rather than steep.

That pattern suggests the portfolio is spread across several meaningful positions instead of being driven by one or two outsized bets. At the same time, the top 10 together make up 54.41% of the portfolio, so a substantial part of the fund still sits in the displayed core holdings. With 30 disclosed holdings overall, the visible book looks moderately concentrated rather than highly diversified across many small positions.

Because the listed holdings are mostly banking, financial and PSU-linked debt instruments, the fund may be influenced by credit quality and issuer selection within that segment. The mix also includes TREPS for liquidity support, which could help manage day-to-day cash needs inside the scheme.

Source data date: as of 10 Sep 2026

Who should invest

This fund is more suitable for investors who want debt exposure with moderate volatility rather than very low-return cash alternatives. The Medium Risk label and the positive 1-year, 3-year and 5-year record suggest a profile that can suit conservative to moderately cautious investors who still want some income orientation.

The main trade-off is that the fund has been steadier than the benchmark in recent periods, but it has not shown a large performance gap over the longer run. Investors who can stay invested for at least a medium-term horizon may find that acceptable, while very short-term investors may not need this kind of credit-and-duration mix.

The portfolio tilt toward banking, PSU and related debt instruments may appeal to those who prefer familiar issuers and a relatively disciplined income strategy. The fund is less compelling for anyone expecting equity-like upside, but it may fit a fixed-income allocation where consistency matters more than speed of return.

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 Sundaram Banking and PSU Debt Fund Direct Growth Plan?

The current NAV is ₹46.5735 as of 10 Sep 2026.

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

The fund’s 1-year return is 5.42%, its 3-year return is 7.17% and its 5-year return is 6.05%.

How does the fund compare with its benchmark?

It has outpaced the benchmark across 1 month, 3 months, 1 year, 3 years and 5 years. The 1-year comparison is the clearest, with the fund positive while the benchmark is negative.

How does the fund compare with peer funds on return data?

Its 1-year return is below some peers, while its 3-year and 5-year figures sit in the middle of the peer set on the available data. The longer-term comparison is more balanced than the short-term one.

Is there a minimum SIP amount?

The minimum SIP amount is ₹250.

Who manages the fund and what is the exit load?

The fund is managed by Sandeep Agarwal, Kumaresh Ramakrishnan and Ronak Shah. There is no exit load after the holding period.

Bottom line

This fund has been steadier than its benchmark in the recent period, while the longer-term return profile stays positive without looking stretched. Against peers, the short-term return is softer, but the multi-year picture is more balanced. The portfolio leans toward banking and PSU-linked debt instruments, and the top holdings carry meaningful weight, so issuer selection matters. For investors seeking a Medium Risk debt allocation with a conservative income focus, the fund looks more like a steady core option than a return-chasing one.

Published on 11 September 2026 at 10:26 AM IST

Explore mutual funds with Univest

Review mutual fund data, compare performance and explore fund insights on Univest.

Explore Univest

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.