About Equity Mutual Funds
Investment Objective and Strategy of SBI PSU Fund
Fund Information and Statistics
Launch Date: The SBI PSU Fund was first opened for investment in July 2010.
Fund Type: This is an open-ended equity mutual fund that invests in various PSU i.e. Public Sector Undertaking companies.
Minimum Investment: For a first-time investor, the minimum investment amount of this fund is Rs. 5000, while the minimum additional investment amount, in this case, would be Rs. 1000 and multiples of Re. 1 thereof. The minimum single SIP installment for this fund is Rs. 500 with a minimum of 12 installments.
Risk Category: Being a diversified fund focused on making equity investments in various Public Sector Units, the SBI PSU Fund features a potentially high level of risk including risk to the principal invested. However, as a result of this potentially high-risk level, the investor might also be able to avail a higher level of return on their investment.
Entry/ Exit Load: As per current SEBI mandate, mutual fund schemes are currently not allowed to charge an entry load when an investor enters into i.e. starts investing in a scheme. However, an exit load of 1% is applicable in case units of the SBI PSU Fund are redeemed prior to completion of 12 months from the date of unit allocation.
Fund Manager: The SBI PSU Fund is currently managed by Mr. Richard D’Souza, who has over 19 years of experience in the industry. He joined SBI Mutual Fund AMC in 2010 as part of the Retail PMS Division and has been managing the SBI PSU Fund since 2014. Prior to joining SBI Mutual Fund AMC, he had worked with ASK Investment Managers, Antique Shares, Sunidhi Consulting and Alchemy Shares – all of which are among the top companies in the financial services sector.
Plans and Options Available
Direct Plan: The direct plan of SBI PSU Fund is available to investors making their mutual fund investments through SBI Mutual Fund AMC. This plan features a lower expense ratio as compared to the regular plan of the fund and therefore is projected to provide higher returns than the regular plan in the long term. Additionally, units of this fund also feature a slightly higher NAV as compared to the regular plan.
Regular Plan: This is the most commonly available variant of the SBI PSU Fund for an individual investor. The plan can be availed through all registered 3rd party mutual fund distributors including Paisabazaar.com. Being available through 3rd parties, the expense ratio in this plan is slightly higher than the direct plan; however, unlike some distributors and brokers, there are no charges for portfolio management or brokerage in case this investment is made through Paisabazaar.com.
Dividend Option: Mutual Funds declare dividends just like shares in case there is a distributable surplus available to the fund as a result of profits. However, this dividend can be availed by an investor only in case they choose the dividend option. There are 2 major subtypes of the dividend option – dividend reinvest and dividend payout. In either case, when a dividend is declared, the NAV of the units held decreases by an equal amount. Thus capital gains available in case of this option are relatively less but dividends provide periodic income while the investor is staying invested in the scheme.
Growth Option: The growth variant of the SBI PSU Fund does not offer any apparent benefit while the investor holds units of the fund. In case the scheme makes profits, such proceeds are invested back into the fund increasing its AUM as well as its NAV overtime. This makes investor’s initial investments grow in the medium to long term. That’s the reason why investors seeking growth in the medium to long term prefer to invest in the growth option of mutual funds.
Leading Investments of the SBI PSU Fund
The following are the leading equity-based investments of the SBI PSU Fund*:
|Banking and Financial Services||State Bank of India, Punjab National Bank, Bank of Baroda, LIC Housing Finance Company, Union Bank of India, etc.|
|Oil & Gas||Indian Oil Corporation, Mahanagar Gas, Oil and Natural Gas Corporation, Indraprastha Gas Limited, Hindustan Petroleum Corporation Limited, Gas India Limited, Oil India, Petronet LNG Limited, Bharat Petroleum Corporation Limited, etc.|
|Utilities||Power Grid Corporation, National Thermal Power Corporation, etc.|
|Metals & Mining||Coal India Limited, National Aluminium Company, etc.|
|Others||Engineers India, Bharat Electronics, Container Corporation of India, etc.|
*The above table is illustrative and not an exhaustive list of the fund’s investments.
How to Invest in SBI PSU Fund through Paisabazaar.com
Signing up for the account is free of charge and an investor can avail the Aadhaar-based e-KYC facility in order to complete the SEBI-mandated KYC requirements in an easy and efficient manner. Once KYC is verified and bank mandate is provided by a prospective investor, he/she can start investing in an equity, debt or hybrid fund of their choice immediately. What’s more, there are no hidden charges for the Paisabazaar.com investment account, hence the benefits of your investment profits will be solely your own.