The banking and PSU debt funds are open-ended debt schemes predominantly investing in debt instruments of banks, public sector undertakings and public financial institutions. These schemes generally invest in instruments with reasonably high liquidity and low average maturity.
These schemes are ideal for investors looking for higher returns than bank deposits, with some risk. In the current market situation, these schemes can do very well like the other bond funds.
The minimum investment varies from scheme to scheme. It could range between Rs.100/ – to Rs.5,000/ -.