September 22, 2022
mayank
Nippon India Banking & PSU Debt Fund
NAV Growth: Rs 17.4247
NAV IDCW Weekly: Rs 10.2581
NAV IDCW Quarterly: Rs 10.7507
NAV IDCW Monthly: Rs 10.6599
NAV IDCW: Rs 17.4247
NAV Bonus: Rs 17.4252
Suitable For Which Investors?
“Banking and PSU funds invest mainly in bonds issued by banks, public sector undertakings (PSUs) and public financial institutions. They are suitable for a short investment horizon of two to three years, or for the fixed-income allocation in your longer-term portfolio. You can expect to earn higher returns than what a bank fixed deposit can fetch.
The risk of incurring a loss in these funds is low, but they do not guarantee returns or safety of capital like a bank deposit.
Remember, their returns may not be substantially higher than inflation. They are meant to deliver steady, but low to moderate returns and are not suitable to build wealth in the long run.”
Fund’s Investment Strategy:
The scheme seeks to generate income over short to medium term horizon through investments in debt and money market instruments of various maturities, consisting predominantly of securities issued by entities such as Banks, Public Sector Undertakings (PSUs) and Public Financial Institutions.
Fund Manager:
1) Pranay Sinha
Education: Mr. Sinha has done B.Tech in Aerospace Engg. from IIT Kharagpur and PGDM with Major in Finance from IIM Calcutta.
Experience: Prior to joining Nippon India Mutual Fund, he has worked with ABSLAMC, BNP Paribas Bank (October 2010 – August,2014) , Morgan Stanley Investment Management Pvt. Ltd. (March 2008 – October 2010) and ICICI Prudential Asset Management Co. Ltd. ( October 2005 – March 2008).
2) Vivek Sharma
Education: Mr. Vivek Sharma is a B.E (Electronics) and PGDM (Finance).
Experience: He has been associated with Nippon India Mutual Fund since 2006.
Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 100 |
| Min. Withdrawal (Rs) | 100 |
| Min. No of Cheques | 60 |
| Min. Balance (Rs) | 1 |
| Lock-in Period | NA |
| Exit Load | 0 |
Basic Details
| Fund House | Nippon India Mutual Fund |
| Launch Date | 15-May-15 |
| Return Since Launch | 7.85% |
| Benchmark | NIFTY Banking and PSU Debt Index |
| Riskometer | Moderate |
| Type | Open-ended |
| Assets | Rs 4,242 Cr |
| (As on 31-Aug-2022) | |
| Expense Ratio | 0.33% |
| (As on 31-Jul-2022) | |
| Risk Grade | Average |
| Return Grade | High |
Nippon India Banking & PSU Debt Fund Trailing Returns (%)
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Nippon Ind Banking & PSU Debt Dir | 2.03 | -0.05 | 0.48 | 1.92 | 1.31 | 2.85 | 6.64 | 7.17 | 7.78 | — |
| CCIL T Bill Liquidity Weight | 1.51 | 0.03 | 0.23 | 0.76 | 1.1 | 2.07 | 2.58 | 3.24 | 3.6 | — |
| Debt: Banking and PSU | 2.09 | -0.08 | 0.41 | 1.86 | 1.47 | 2.83 | 6.23 | 6.84 | 7.52 | — |
| Rank within category | 11 | 8 | 6 | 7 | 11 | 9 | 5 | 5 | 6 | — |
| Number of funds in category | 22 | 23 | 22 | 22 | 22 | 22 | 17 | 16 | 14 | 0 |
Nippon India Banking & PSU Debt Fund Peer Comparison
| Fund name | Rating | 1 Year Returns | 3 Year Returns | 5 Year Returns | Expense Ratio (%) | Net Assets (Rs Cr) | Return Since Launch (%) | Exit Load (Days) | Fund Age |
| Nippon Ind Banking & PSU Debt Dir | 4 star | 2.85 | 6.64 | 7.17 | 0.33 | 4,242 | 7.85 | — | 7yrs 4mo |
| IDFC Banking & PSU Debt Dir | 5 star | 2.94 | 6.51 | 7.40 | 0.32 | 15,787 | 7.90 | — | 9yrs 6mo |
| Axis Banking & PSU Debt Dir | 5 star | 3.23 | 6.13 | 7.25 | 0.34 | 13,872 | 7.97 | — | 9yrs 8mo |
| ICICI Pru Banking & PSU Debt Dir | 4 star | 3.89 | 6.68 | 6.82 | 0.35 | 8,186 | 8.29 | — | 9yrs 8mo |
| Kotak Banking & PSU Debt Dir | 4 star | 3.17 | 6.66 | 7.26 | 0.36 | 6,968 | 8.30 | — | 9yrs 8mo |
Portfolio Breakup
| Fund | Category | |
| Number of Securities | 91 | 63 |
| Modified Duration (yrs) | 2.34 | 1.82 |
| Average Maturity (yrs) | 2.97 | 2.49 |
| Yield to Maturity (%) | 6.87 | 6.71 |
| Avg Credit Rating | AAA | — |
Chanakya’s Mutual Fund Guidance for Nippon India Banking & PSU Debt Fund
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