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Nippon India Banking & PSU Debt Fund: Performance & Metrics

By Market DeskNippon India Banking & PSU Debt Fund: Performance & Metrics

Explore the Nippon India Banking & PSU Debt Fund Direct-IDCW. Key metrics, NAV, returns, and performance against its benchmark. Ideal for short-to-medium term income.

The Nippon India Banking and PSU Debt Fund Direct-IDCW aims to generate income over the short to medium term. This objective is achieved by primarily investing in debt and money market instruments issued by banks, Public Sector Undertakings (PSUs), and Public Financial Institutions.

As of August 28, 2026, the Net Asset Value (NAV) for the IDCW option of its Direct plan stood at Rs 22.87. The fund, launched on May 15, 2015, benchmarks its performance against the CRISIL Banking and PSU Debt A-II Index.

Key Fund Metrics

  • Launch Date: May 15, 2015
  • Benchmark: CRISIL Banking and PSU Debt A-II Index
  • NAV (IDCW Direct): Rs 22.87 (as of August 28, 2026)
  • Expense Ratio: 0.39%
  • Fund Size: Rs 5,246.16 crore (as of July 31, 2026)
  • Category: Debt: Banking and PSU
  • Risk Level: Moderate

The fund has delivered consistent trailing returns across various periods when compared to its category. These figures provide a clear picture of its historical performance within the debt market segment.

Performance Overview

  • 1 Year Return: 5.32%
  • 3 Year Return: 7.17%
  • 5 Year Return: 6.29%
  • Since Launch Return: 7.6%

Accessibility for investors is straightforward, with varying minimum investment thresholds. The fund also features no exit load, enhancing liquidity for unitholders.

Investment Details

  • Minimum Investment: Rs 5,000
  • Additional Investments: From Rs 1,000
  • SIP Investments: From Rs 100
  • Exit Load: None

Portfolio construction emphasizes stability, with a significant portion allocated to low-risk instruments. The fund’s average maturity and modified duration offer insights into its interest rate sensitivity and overall risk profile.

Portfolio Structure and Yield

  • Government-backed Allocation: 12.86%
  • Low Risk Allocation: 82.87%
  • Average Maturity: 3.64 years
  • Modified Duration: 2.93 years
  • Yield to Maturity (YTM): 7.41%

Tax implications for investors depend on the investment date and holding period, alongside the nature of the income. Specific rules apply to capital gains and dividend distributions.

Tax Implications

  • Capital Gains (post-April 1, 2023): Taxed as per investor’s income slab
  • Capital Gains (pre-April 1, 2023): Rules vary by holding period, including indexation benefits for long-term gains
  • Dividend Income: Added to investor’s income, taxed accordingly; 10% TDS for income exceeding Rs 5,000 in a financial year
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