Are you interested in safe debt mutual funds? If so, consider the benefits of banking and public sector unit (PSU) debt-equity schemes.
These funds invest up to 80 percent of their money in banking institutions, public sector companies, and public financial institutions, making them a relatively safe and attractive investment option.
Mutual fund advisors recommend banking and PSU debt funds as low-risk options, as they primarily invest in bonds and papers of government-supported companies.
However, it’s important to note that these schemes are not entirely risk-free. They also invest in bonds and documents issued by private banks, which carry some risk.
In the past, the debt mutual fund sector faced uncertainty, leading many traditional investors to refrain from investing in debt funds due to concerns about not recovering their investments. Following this difficult period, banking and PSU debt funds have gained popularity due to their perceived safety.
Despite the stability of banking and PSU debt funds, it’s crucial to remember that mutual funds still carry market risk. Before investing in these funds, carefully review the details of each scheme. These are some of the top banking and PSU funds to consider investing in as of August 2024:
- Bandhan Banking and PSU Debt Fund
- Axis Banking and PSU Debt Fund
- Aditya Birla Sun Life Banking and PSU Debt Fund
- DSP Banking and PSU Debt Fund
- Kotak Banking and PSU Debt Fund
ET Mutual Funds has compared the performance of the mentioned funds over the last three years and recommends these five types of schemes, noting their potential for high returns with relatively low risk.
Suppose you are considering investing in banking and PSU debt mutual funds. In that case, it’s crucial to conduct thorough research and understand the complete details of the scheme beforehand to make an informed investment decision.