Rs 1 lakh becomes Rs 2 lakh: These two PSU funds have more than doubled investors’ money in 1 year; what next?
A rally on Dalal Street has rewarded investors handsomely in select spaces, such as PSUs, a trend that can be witnessed in the mutual fund returns over the past one year. Data from mutual fund raising industry body AMFI shows that two open-ended PSU equity mutual fund schemes have more than doubled investors’ money in one year in direct mode, as of April 11, 2024.
While mutual fund schemes SBI PSU Fund and Aditya Birla Sun Life PSU Equity Fund have delivered returns of at least 100 per cent during this period, funds like Invesco India PSU Equity Fund have grown investors’ money by more than 90 per cent.
Here is the list of these funds along with their basic details:
SBI PSU Fund
- Daily Assets Under Management (AUM): Rs 2,083.81 crore
- Direct Net Asset Value (NAV): Rs 32.5442 as on April 13, 2024
- Minimum investment (lump sum): Rs 5,000
- Minimum investment (SIP): Rs 500
Invesco India PSU Equity Fund
- Daily Assets Under Management (AUM): Rs 910.73 crore
- Direct Net Asset Value (NAV): Rs 67.1000 as on April 13, 2024
- Minimum investment (lump sum): Rs 1,000
- Minimum investment (SIP): Rs 500
ICICI Prudential PSU Equity Fund
- Daily Assets Under Management (AUM): Rs 2,500.73 crore
- Direct Net Asset Value (NAV): Rs 19.9500 as on April 13, 2024
- Minimum investment (lump sum): Rs 5,000
- Minimum investment (SIP): Rs 100
What next?
Several money managers expect the prevalent trend in PSUs to continue on Dalal Street.
“Looking at monthly flows and that too especially quarter ends and year ends may not be ideal way to understand the trends in flows or investor preferences . We all know that shorter end fixed income funds are bound to see disproportionate outflows due to balance sheet build up by institutional investors,” Madhu Nair, CEO of Union Mutual Fund, told Zeebiz.com.
Inflows into equity mutual fund schemes decreased 15.8 per cent sequentially to Rs 22,633.2 crore in March, retreating from a nearly two-year high clocked the previous month, according to AMFI.
“Multi asset funds are gaining popularity and attracting flows which is a good sign as asset allocation is taking center stage . This could lead to happy outcomes for investors over long term,” Nair added.
What are mutual funds?
Mutual funds are a popular investment option for both new and experienced investors due to their potential for good long-term returns. They pool money from various investors and invest it in a basket of securities, managed by professional fund managers.
