SBI PSU Funds, SBI Mutual Funds: The stock market has been on a rollercoaster ride recently, with a prolonged decline lasting over a month and a half. This turbulence has impacted mutual fund portfolios, with many investors witnessing reduced returns. However, some mutual fund schemes managed to stand strong, showing resilience despite market downturns. One such shining star is SBI’s PSU Fund, which has delivered an impressive return of 49.89% over the last year, even amid challenging times.
Strong Performance in a Tough Market
According to AMFI data, the direct plan of SBI PSU Fund posted a return of 49.89% in the past year, while the regular plan followed closely with a return of 48.20%. Interestingly, during the same period, the PSU fund benchmark recorded a slightly higher return of 50.42%, reflecting the overall strength of the PSU category.
The PSU fund category as a whole has outperformed, with returns exceeding 40% in the last year. This showcases the immense potential of funds focusing on public sector companies.
As of now, the daily AUM (Assets Under Management) of the SBI PSU Fund stands at a robust ₹4,761.46 crore. The NAV (Net Asset Value) for its regular plan is ₹32.6016, while the NAV for the direct plan is ₹35.6631.
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A Long-Term Performer
SBI PSU Fund has a stellar track record. Over the last three years, it has generated a return of 38.95%. Its five-year return stands at 26.86%, while the 10-year return is 13.10%. Since its inception, the fund has provided an annualized return of 8.61%, making it a reliable choice for long-term investors.
Investment Strategy
This fund focuses exclusively on government-owned companies. Its portfolio includes leading names such as:
- State Bank of India
- Power Grid Corporation of India
- GAIL (India) Limited
- Bharat Electronics Limited
- Bharat Petroleum Corporation Limited
- NTPC Limited
- NMDC Limited
- Bank of Baroda
- Petronet LNG
- General Insurance Corporation of India (GIC)
The fund’s focus on PSU stocks has enabled it to capitalize on opportunities in sectors like banking, energy, and infrastructure, which have shown resilience and growth prospects.
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Why Consider SBI PSU Fund?
Investors seeking exposure to government-owned companies and looking for consistent returns over the long term may find this fund appealing. While past performance does not guarantee future results, the SBI PSU Fund’s track record highlights its potential to navigate market ups and downs effectively.
In conclusion, the SBI PSU Fund has demonstrated that even in volatile markets, strategic investments in strong, government-backed companies can yield substantial returns. For those considering mutual funds with a focus on PSUs, this scheme could be worth exploring.
(Disclaimer: Mutual fund investments are subject to market risks. Please read the scheme information and consult a financial advisor before investing.)
