Investing in Public Sector Undertaking (PSU) Mutual Funds can be a prudent choice for investors seeking stability and growth potential in their portfolios. With the government’s backing and a focus on investing in PSU stocks, these funds offer a unique opportunity to capitalise on the growth prospects of various sectors in the economy.
In this article, we delve into two top-performing PSU mutual funds that have delivered remarkable returns and garnered investor confidence.
As of January 31, 2024, the Banking and PSU Fund comprises 23 schemes, catering to a substantial base of 2,62,869 folios. Throughout January 2024, the fund saw a mobilization of funds amounting to Rs 735.01 crore, indicating investor interest and participation. However, during the same period, significant repurchases/redemptions were amounting to Rs 1,236.02 crore, resulting in a net outflow of Rs 501.01 crore for the month.
Despite this outflow, the fund maintained a substantial net asset under management (AUM) of Rs 80,146.18 crore as of January 31, 2024. Additionally, the average net assets under management for the month of January 2024 stood at Rs 80,089.74 crore, reflecting the fund’s stability and continued market presence.
| Scheme Name | AuM (in crore) | 1 Year Returns |
| Aditya Birla Sun Life PSU Equity Fund | 2,678.68 | 104% |
| SBI PSU Fund | 1,432.29 | 100% |
Data as of February 23, 2024
With assets under management (AuM) of Rs 2,678.68 Crore, this fund has delivered an impressive 104% return over the past year, showcasing its ability to outperform the market. Since its launch, the fund has generated a substantial return of 35.12%, affirming its status as a reliable choice for investors seeking exposure to PSU stocks. Its moderate expense ratio of 0.58% and disciplined portfolio turnover of 62% further enhance its appeal, making it a top contender in the PSU mutual fund space.
A lump sum investment of Rs 1,00,000 in this fund would have turned into Rs 2,04,000 in just a year.
Boasting an AuM of Rs 1,432.29 Crores, the SBI PSU Fund has demonstrated commendable performance with a one-year return of 100%. Despite its lower return since launch at 12.56%, the fund’s consistent track record and relatively longer fund age of 11 years and 1 month instil confidence among investors. With an expense ratio of 1.02% and a portfolio turnover of 76%, the fund maintains a balanced approach to cost management and asset allocation, positioning itself as a promising multibagger in the PSU mutual fund segment.
A lump sum investment of Rs 1,00,000 in this fund would have turned into Rs 2,00,000 in just a year.
| Particulars | Return Since Launch (%) | Exit Load (Days) | Expense Ratio (%) | Fund Age | Portfolio Turnover (%) |
| ABSL PSU Equity Dir | 35.12 | 1.00 (30) | 0.58 | 4Y 1M | 62 |
| SBI PSU Dir | 12.56 | 0.50 (30) | 1.02 | 11Y 1M | 76 |
Data as of February 23, 2024
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
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