Investment Objective
The investment objective of SBI PSU Fund is to provide long-term capital appreciation and liquidity through an actively managed and diversified portfolio of equity stocks of domestic Public Sector Undertakings (PSU) and their subsidiaries and in debt and money market instruments issued by PSUs and other companies.
Investment Strategies
- SBI PSU Fund invests at least 80% in equities of PSU companies and their subsidiaries.
- The scheme may invest in quasi-PSUs or subsidiaries of PSUs, which could be part of the PSU index. Such entities are defined by management control or the ability to appoint key managerial personnel, and not necessarily by holding a 51% equity stake. However, a minimum stake of 35% by the PSU, Central Government or State Government(s) and the highest share among other shareholders is required for being eligible for investment.
- The fund manager retains the flexibility to invest up to 20% in equities of companies other than PSU and/or in debt or money market instruments.
- It seeks to control liquidity risks and manage non-systematic risks by investing in well-researched stocks with medium- to long-term growth potential.
- The investment strategy aims to identify market opportunities by diversifying its equity portfolio.
- The fund usually invests through primary market, secondary market, preferential/firm allotments, private placement/QIP or any other mode.
Who Should Invest
- SBI PSU Fund is suitable for investors seeking to invest in a diversified basket of equity stocks of domestic PSUs and their subsidiaries.
- Those having a higher risk appetite may invest in this fund.
Frequently Asked Questions
What is the risk level of SBI PSU Fund?
As per the fund factsheet published by the fund house, SBI PSU Fund is considered to carry ‘Very High Risk’ for its investors.
Is there any lock-in period in SBI PSU Fund?
SBI PSU Fund has no lock-in period for its investors. Thus, the investors of SBI PSU Fund are free to make redemption requests on any day as per their requirements.
What type of mutual fund is the SBI PSU Fund?
SBI PSU Fund is an open-ended equity mutual fund scheme belonging to the sectoral fund category. The fund predominantly invests in PSU or subsidiaries of PSU companies.
Is SBI PSU Fund an open-ended or close-ended scheme?
The SBI PSU Fund is an open ended equity mutual fund scheme.
What is the benchmark index for SBI PSU Fund?
BSE PSU TRI is the benchmark index of the SBI PSU Fund. The fund also has BSE Sensex TRI as its additional benchmark index.