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

TRUSTMF Banking & PSU Fund Direct Growth Plan currently has a NAV of ₹1,341.765 as of 10 Feb 2026 and an AUM of ₹130 Cr. Its 1-year, 3-year and 5-year returns are 7.26%, 7.52% and 6.17%, respectively, and the scheme is tagged as Medium Risk.

Our view is that this is a conservative debt-oriented option for investors who want relatively stable credit-oriented exposure rather than aggressive growth. The return pattern has stayed ahead of the benchmark over longer periods, while the portfolio remains anchored in sovereign, PSU and other high-quality debt holdings.

Quick facts

Particular	Details
NAV	₹1,341.765 as of 10 Feb 2026
AUM	₹130 Cr
Expense Ratio	0.21%
Launch Date	01 Feb 2021
Min SIP	₹1,000
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Jalpan Shah, Shradhanjali Panda

The fund is managed by Jalpan Shah and Shradhanjali Panda.

Source data date: as of 10 Feb 2026

Performance

Period	Fund return	Benchmark return
1M	Data not available	Data not available
3M	Data not available	Data not available
1Y	7.26%	-5.31%
3Y	7.52%	6.3%
5Y	6.17%	5.79%

The recent one-year picture is better than the benchmark, which has been negative over the same horizon. That contrast matters because this fund has held up while the benchmark has not, so the last year looks materially stronger than the broader reference line.

Over three and five years, the fund has remained ahead of the benchmark by a modest margin. The 3-year return of 7.52% is slightly above the benchmark’s 6.3%, while the 5-year return of 6.17% is also above the benchmark’s 5.79%. That tells us the fund has delivered a steadier compounding path than the benchmark over longer holding periods.

The pattern in the return path suggests a debt fund that has not moved in a straight line, but has recovered in a controlled way after softer phases. We see some short stretches of drift and pullback, followed by a more gradual rebuilding of gains, which is typical of a portfolio with interest-rate sensitivity and credit exposure. The key point for investors is that the fund has not relied on one strong burst; its longer-term result has been built more steadily.

So, the 1-year result stands out positively against the benchmark, while the 3-year and 5-year figures confirm that the outperformance has not been only a recent event. For a conservative debt investor, that combination usually matters more than a one-off spike in performance.

Source data date: as of 10 Feb 2026

Should you BUY or HOLD TRUSTMF Banking & PSU?

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
TRUSTMF Banking & PSU Fund Direct Growth Plan	7.26%	7.52%	6.17%
Franklin India Banking & PSU Debt Fund Direct Growth Plan	6.37%	7.51%	6.41%
UTI Banking & PSU Debt Fund Direct Growth Plan	6.14%	7.44%	7.71%
Bandhan Banking and PSU Debt Fund Direct Growth Plan	5.81%	7.16%	6.23%
ICICI Pru Banking and PSU Debt Fund Direct Growth Plan	5.75%	7.25%	6.63%

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

On the 1-year measure, this fund sits above the other available peers in the table, which supports the view that the recent run has been relatively better. The picture is less uniform over longer periods: its 3-year return is close to Franklin India Banking & PSU Debt Fund Direct Growth Plan, while its 5-year return trails UTI Banking & PSU Debt Fund Direct Growth Plan but stays in line with the broader peer set.

That mix matters because the short-term comparison and the longer-term comparison are telling slightly different stories. The fund has shown stronger recent momentum, while some peers have built a somewhat stronger 5-year record. Even so, the current fund remains competitive across the peer group on the return figures available here, especially on the 1-year horizon.

Source data date: as of 10 Feb 2026

Portfolio: where your money goes

Holding	Sector	Weight
6.75% GOI 23-Dec-2029	Government Securities	11.70%
7.77% REC Limited 31-Mar-2028 **	Corporate Debt	10.86%
7.48% National Bank for Agriculture and Rural Development 15-Sep-2028	Corporate Debt	10.78%
7.59% National Housing Bank 14-Jul-2027	Corporate Debt	10.02%
7.35% Export Import Bank of India 27-Jul-2028 **	Corporate Debt	8.86%
6.47% Indian Railway Finance Corporation Limited 30-May-2028 **	Corporate Debt	6.80%
7.60% Power Finance Corporation Limited 13-Apr-2029 **	Corporate Debt	6.19%
7.70% HDFC Bank Limited 16-May-2028 **	Corporate Debt	6.17%
7.04% GOI 03-Jun-2029	Government Securities	3.93%
7.68% Small Industries Development Bank of India 09-Jul-2027 **	Corporate Debt	3.85%

The top 10 holdings account for approximately 79.16% of the portfolio.

To see all holdings, visit the TRUSTMF Banking & PSU Fund Direct Growth Plan page

The largest holding, 6.75% GOI 23-Dec-2029, is 11.70% of the portfolio, so a single sovereign line still carries meaningful weight. After that, the allocation stays fairly clustered: the next few positions are all near or above 6%, which suggests the portfolio is not reliant on one outsized security, but also not widely dispersed across many tiny positions.

There is a noticeable drop from the biggest line to the tenth, but the decline is gradual rather than abrupt. That usually indicates a core-satellite structure where a set of large debt positions may have the greatest influence, while the rest of the book provides additional spread across issuers and maturities.

Because the top 10 holdings together account for 79.16% of the portfolio, the visible portfolio is relatively concentrated in the disclosed leaders, even though there are 18 holdings in total. For investors, that means the fund’s outcome may be shaped more by a limited set of high-conviction debt positions than by a very broad tail of small holdings.

Source data date: as of 10 Feb 2026

Who should invest

This fund may suit investors who are comfortable with medium risk in a debt strategy and want a portfolio that leans toward banking, PSU and sovereign-style exposure. The return pattern shows a steady longer-term record with the 1-year number also ahead of the benchmark, which supports its case for investors who value consistency more than high upside.

The main trade-off is that the fund can move with rate and credit conditions, so returns may not look smooth in every period. A medium-term horizon is more sensible than a short holding window, especially if the aim is to let the debt portfolio work through interest-rate cycles. Investors looking for a measured, income-oriented approach may find the profile more relevant than those chasing faster capital growth.

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 applies if units are sold anytime.

Source data date: as of 10 Feb 2026

Frequently asked questions

What is the current NAV of TRUSTMF Banking & PSU Fund Direct Growth Plan?
The current NAV is ₹1,341.765 as of 10 Feb 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 7.26% for 1 year, 7.52% for 3 years and 6.17% for 5 years.

How has the fund performed against the benchmark?
It has stayed ahead of the benchmark over 1-year, 3-year and 5-year periods. The gap is widest over 1 year, where the benchmark is negative.

How does it compare with other banking and PSU debt funds on return numbers?
Its 1-year return is the strongest among the peers shown here, while its 3-year result is close to Franklin India Banking & PSU Debt Fund Direct Growth Plan and its 5-year result trails UTI Banking & PSU Debt Fund Direct Growth Plan.

Is there a minimum SIP amount?
Yes. The minimum SIP amount is ₹1,000.

Who manages the fund and what is the exit load?
The fund is managed by Jalpan Shah and Shradhanjali Panda. There is no exit load if units are sold anytime.

Bottom line

TRUSTMF Banking & PSU Fund Direct Growth Plan has combined a stronger recent year with a respectable longer-term record, and it has done so while staying ahead of the benchmark across the periods shown. The peer comparison is more mixed over longer horizons, but the fund still looks competitive on the return numbers available. Its Medium Risk tag and debt-oriented portfolio suit investors who want a measured approach, with the added feature that the largest positions are concentrated in a relatively small set of sovereign and financial-sector debt instruments.

Published on 21 September 2026 at 9:33 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.