Kotak Banking and PSU Debt fund is a top quartile fund within the category.
As per SEBI's mandate, funds in this category are required to invest at least 80% in debt instruments issued by banks and public sector undertakings (PSUs) and in government bands.
Kotak Banking and PSU Debt mitigates credit risk further by investing fully in such bonds. Some funds in this category have investment in non-PSU bonds too.
Currently around 25% of the fund's assets are held in AA-rated debt papers issued by PSUs and banks which help spice up returns. The fund delivers better returns than bank recurring deposits.
Investors with low-to-medium risk profile can consider SIPs in the fund. A minimum time horizon of three years is advisable.
![commodityjpg commodityjpg](/theme/images/bl-online/1x1_spacer.png)
![commo2jpg commo2jpg](/theme/images/bl-online/1x1_spacer.png)
![comm3jpg comm3jpg](/theme/images/bl-online/1x1_spacer.png)
Compiled by: Dhuraivel Gunasekaran
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.