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.