COMPARE
HSBC Banking and PSU Debt Fund - Direct Growth vs Kotak Banking and PSU Debt Direct - Growth
HSBC Banking and PSU Debt Fund and Kotak Banking and PSU Debt Direct are both in the Banking and PSU Fund category, from HSBC Asset Management (India) Private Ltd. and Kotak Mahindra Asset Management Company Limited. respectively. Kotak Banking and PSU Debt Direct has posted a higher 3-year rolling CAGR. HSBC Banking and PSU Debt Fund has the lower expense ratio. See the full table and FAQ below for the complete real-data comparison.
Basics
HSBC Banking and PSU Debt Fund has the lower direct-plan expense ratio, by 0.12 percentage points.
| HSBC Banking and PSU Debt Fund - Direct Growth | Kotak Banking and PSU Debt Direct - Growth | |
|---|---|---|
| Category | Banking and PSU Fund | Banking and PSU Fund |
| AMC | HSBC Asset Management (India) Private Ltd. | Kotak Mahindra Asset Management Company Limited. |
| Benchmark | NIFTY Banking & PSU Debt Index A-II | CRISIL Banking and PSU Debt A-II Index |
| NAV | ₹27.1161 (2026-10-28) | ₹72.4068 (2026-10-28) |
| AUM | ₹3,688.157 Cr | ₹4,702.909 Cr |
| Expense Ratio (Direct) | 0.28% | 0.4016% |
| Inception | 2007-09-19 | 2000-01-02 |
Returns
Kotak Banking and PSU Debt Direct leads on 3-year rolling CAGR (8.0% vs HSBC Banking and PSU Debt Fund's 7.1%) - see the FAQ below for percentile context within each fund's own category.
Risk Metrics
Risk metrics aren't shown for debt funds. Their NAV starts near Rs 10 and compounds steadily, so CAGR, beta and drawdown measure the arithmetic rather than the manager.
Portfolio Analytics
HSBC Banking and PSU Debt Fund carries the higher portfolio YTM.
Punji Fund Health Score
Kotak Banking and PSU Debt Direct has the stronger Punji Quality grade of the two.
Frequently asked questions
Which has a higher 3-year return, HSBC Banking and PSU Debt Fund or Kotak Banking and PSU Debt Direct?
Kotak Banking and PSU Debt Direct's 3-year rolling CAGR of 8.0% is higher than HSBC Banking and PSU Debt Fund's 7.1%. Kotak Banking and PSU Debt Direct sits in the 95th percentile of its category on this metric, versus the 21st percentile for HSBC Banking and PSU Debt Fund - though note both funds may belong to different categories with different medians, so a raw CAGR comparison doesn't account for how each fund performed relative to its own peers. A higher historical return also doesn't necessarily mean lower risk; check the risk metrics below before concluding either fund is the "better" choice.
Which has a lower expense ratio, HSBC Banking and PSU Debt Fund or Kotak Banking and PSU Debt Direct?
HSBC Banking and PSU Debt Fund's direct-plan expense ratio is 0.12 percentage points lower than Kotak Banking and PSU Debt Direct's. Over long holding periods, a persistent expense-ratio gap compounds into a materially different final corpus even if the two funds' gross returns are similar - it's one of the few fund attributes you can compare with total certainty upfront, unlike future returns, since the fee is contractually fixed rather than a historical estimate.
Why don't HSBC Banking and PSU Debt Fund and Kotak Banking and PSU Debt Direct show risk metrics like Sharpe ratio or alpha?
Risk metrics aren't shown for debt funds. Their NAV starts near Rs 10 and compounds steadily, so CAGR, beta and drawdown measure the arithmetic rather than the manager. This is a deliberate methodology choice, not missing data - risk metrics like alpha and Sharpe ratio are most meaningful for actively-managed funds where a manager makes decisions that can add or subtract value versus a benchmark. For a fund that mechanically tracks an index, the equivalent useful metric is tracking error (how closely it follows its index), not alpha.
Which has higher AUM, HSBC Banking and PSU Debt Fund or Kotak Banking and PSU Debt Direct?
Kotak Banking and PSU Debt Direct has ₹4,703 Cr in assets under management, versus ₹3,688 Cr for HSBC Banking and PSU Debt Fund. A larger AUM generally means deeper liquidity and lower per-unit fixed costs for the AMC to spread across investors, but an AUM that's very large relative to a fund's category and strategy (especially in small/mid cap categories, where the investable universe is smaller) can also make it harder for a manager to enter and exit positions without moving the price - bigger isn't automatically better, especially for less liquid categories.
Which has a higher yield to maturity (YTM), HSBC Banking and PSU Debt Fund or Kotak Banking and PSU Debt Direct?
HSBC Banking and PSU Debt Fund's portfolio YTM (7.793%) is higher than Kotak Banking and PSU Debt Direct's. YTM is the weighted-average return a debt fund's current bond holdings would earn if held to maturity, assuming no defaults and coupons reinvested at the same rate - a useful forward-looking yield estimate for debt funds the way rolling CAGR is for equity funds, though it's an estimate based on today's portfolio, not a guaranteed return, and can move as bonds are bought/sold or as interest rates change.
Which has longer duration (more interest-rate sensitivity), HSBC Banking and PSU Debt Fund or Kotak Banking and PSU Debt Direct?
HSBC Banking and PSU Debt Fund has the longer Macaulay duration of the two, meaning its NAV is more sensitive to interest-rate changes - a longer-duration debt fund tends to gain more when rates fall and lose more when rates rise, compared to a shorter-duration fund. Duration is expressed in years but isn't literally about how long you hold the fund; it's a measure of price sensitivity to rate moves. If you expect rates to fall, the longer-duration fund benefits more; if you expect rates to rise or want to minimize that swing, the shorter-duration fund is the more conservative pick.
Which fund has a longer track record, HSBC Banking and PSU Debt Fund or Kotak Banking and PSU Debt Direct?
Kotak Banking and PSU Debt Direct launched on 2000-01-02, making it older than HSBC Banking and PSU Debt Fund (launched 2007-09-19). A longer track record means more real market cycles (bull runs, corrections, rate cycles) the fund has actually navigated, which is useful context for judging consistency - but it isn't a guarantee of future performance, and a newer fund isn't automatically worse, especially if it's run by an experienced manager or team with a track record at a prior fund.
Data as of 2026-10-29. Source: AMFI disclosures via Punji. Not investment advice.