Top Banking and PSU Mutual Funds for January 2026 Investment

Are banking and PSU mutual funds suitable for conservative investors?

Certainly, the credit risk decreases due to their focus on regulated institutions and government-linked issuers.

Do PSU debt funds guarantee returns?

No. Returns fluctuate with interest rate movements, though volatility remains lower than that of equity funds.

Can these funds replace fixed deposits?

They are expected to generate higher returns in the long run, but of course, the results are not guaranteed financially.

Is January 2026 a good entry point?

Since the policies are stable, a steady allocation over time is more prudent than taking on a considerable exposure at once.

Is it good to invest in debt mutual funds?

Yes, investing in debt mutual funds is generally a good option for investors who want stable returns, portfolio diversification, and a less risky alternative to equities.