CPSE ETF, the largest PSU fund based on assets managed, delivered 106.52% return in one year. The scheme had an AUM of Rs 46,793 crore as on July 2024.
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Invesco India PSU Equity Fund, the oldest PSU fund, stood second in the return chart and gave 82.36% return in the similar time period. ICICI Prudential PSU Equity Fund posted a return of around 81.20% in the said period.
Aditya Birla Sun Life PSU Equity Fund and SBI PSU Fund gave 77.11% and 75.95% returns respectively in the same time period.
The PSU theme based funds are benchmarked against Nifty CPSE – TRI and BSE PSU – TRI. These benchmarks went up by 107.13% and 92.56% respectively in the last one year.
In the last nine months, these funds have offered an average return of around 60.60% with each scheme offering over 50% return. The highest return was offered by CPSE ETF. The largest fund gave 73.13% return in the last nine-month period.
Invesco India PSU Equity Fund offered 61.06% return in the last nine months, followed by SBI PSU Fund which gave 59.40% return in the same period. ICICI Pru PSU Equity Fund and Aditya Birla SL PSU Equity Fund offered 57.39% and 52.04% returns respectively in the said period.
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The performance by these funds has been on the lower side in the return chart in the last three months, when the schemes gave an average return of 0.76%, with three schemes giving negative returns. CPSE ETF gave the highest return of around 4.18%, followed by Quant PSU Fund which gave 2.92% return. ICICI Pru PSU Equity Fund gave 1.55% return in the same period.
Invesco India PSU Equity Fund lost around 2.21% in the last three months. Aditya Birla SL PSU Equity Fund and SBI PSU Fund gave a negative return of around 1.64% and 0.24% respectively in the same time period.
PSU funds are thematic funds that invest in stocks of public sector undertakings or PSUs. These companies are government-owned. So they are influenced by government policies on sectors they are operating.
You should invest in these schemes only if you have a long investment horizon or have intimate knowledge about the sector to time the entry and exit in these schemes. Remember, every sector or theme can go out of fashion depending on the economic conditions. You should not make hasty decisions in those phases.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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