SBI PSU Fund is an open-ended equity mutual fund that primarily invests in public sector undertakings (PSUs) in India. Launched on July 7, 2010, the fund aims to provide investors with opportunities for long-term capital appreciation by focusing on equity and equity-related instruments of PSUs.
Fund Overview
- Category: Equity
- Launch Date: July 7, 2010
- Assets Under Management (AUM): ₹4,703 crore as of September 30, 2024
- Risk Level: Very High
Performance Metrics
SBI PSU Fund has demonstrated robust performance over various time horizons:
- 1-Year Return: 64.57%
- 3-Year CAGR: 32.96%
- 5-Year CAGR: 26.18%
Since its inception, the fund has delivered an annualized return of 8.70%.
Expense Ratio & Exit Load
- Expense Ratio: 1.86%
- Exit Load: Not applicable; the fund does not impose any exit load.
Top Holdings & Sector Allocation
As of September 30, 2024, the fund’s top holdings include:
- State Bank of India (SBI): 13.87%
- Power Grid Corporation of India: 9.44%
- GAIL (India) Limited: 9.37%
- Bharat Petroleum Corporation Limited (BPCL): 6.45%
- Bharat Electronics Limited (BEL): 6.29%
The fund’s asset allocation is as follows:
- Equity: 96.54%
- Cash & Cash Equivalents: 3.46%
Fund Manager Details
Information about the current fund manager and their track record is not available in the provided sources. Investors are advised to consult the official SBI Mutual Fund website or recent fund literature for the most up-to-date details.
Investment Strategy
The fund predominantly invests in equity and equity-related instruments of PSUs, aiming for long-term capital appreciation. Given its focus on public sector companies, the fund may exhibit a value-oriented investment approach, targeting companies with strong fundamentals and attractive valuations.
NAV (Net Asset Value) & Investment Options
- Latest NAV: ₹32.9410 as of October 21, 2024
- Minimum Investment:
- Lumpsum: Information not specified in the provided sources.
- SIP (Systematic Investment Plan): Information not specified in the provided sources.
Why Choose SBI PSU Fund?
- Exposure to PSUs: Investors seeking to capitalize on the growth potential of India’s public sector enterprises may find this fund appealing.
- Strong Historical Performance: The fund has delivered impressive returns over 1-year, 3-year, and 5-year periods, outperforming many peers.
- Diversification: Investing in a mix of PSUs across various sectors can provide diversification benefits.
Why Not Choose SBI PSU Fund?
- High Risk Level: The fund is categorized under the ‘Very High’ riskometer, indicating significant market volatility.
- Sector Concentration: A focus on PSUs may lead to sector-specific risks, especially if public sector companies underperform.
- Limited Flexibility: The mandate to invest primarily in PSUs may restrict the fund’s ability to diversify into other high-performing sectors.
Performance of Companies in the Fund
The top holdings, such as SBI, Power Grid Corporation, GAIL, BPCL, and BEL, have shown resilience and growth in their respective sectors. However, investors should monitor these companies’ financial performance, regulatory changes, and market dynamics, as they can significantly impact the fund’s returns.
Conclusion
SBI PSU Fund offers investors an opportunity to participate in the growth of India’s public sector enterprises. While the fund has delivered strong historical returns, potential investors should carefully consider the associated risks, including high market volatility and sector concentration. Conducting thorough due diligence and aligning the investment with individual financial goals and risk tolerance is essential before investing.
