Top 3 PSU SIP Mutual Funds: Know what Rs 25,000 monthly SIP in each fund has given in 3 years
The outlook on these funds focused on the PSU theme is positive, nonetheless, investors need to note that these funds are subject to market and concentrated risks.
As June turned out to be a blockbuster month for thematic/sectoral mutual funds , which managed to amass Rs 22,351.69 crore during the month, here is a quick low down on top performing PSU mutual funds in the last three years. But first and foremost let’s delve into the basics of PSU funds:
PSU Equity funds: All about them in nutshell
These are open-ended mutual fund schemes that may be apt for risk-averse investors as they invest in state-run PSUs and other state-owned banks. Other than the capital appreciation advantage, these funds come loaded with other benefits such as regular dividend pay-out, potential to outperform the market and exposure to an array of sectors.
Invesco India PSU Equity Fund - Direct Plan - Growth
This thematic fund commands an NAV of Rs 82.69. Expense ratio of the fund is pegged at 0.93 per cent. Some of the top holdings of the fund include Power Grid Corporation (PGCIL), Hindustan Aeronautics, BEL, NTPC and SBI among others. This fund over a 3-year period has offered an annualized return of 43.2 per cent as against the category average of 43.48 per cent.
SIP in the fund can be kickstarted with a bare minimum sum of Rs 500. Someone who had initiated a Rs 25,000 monthly SIP three years back would have made over Rs 20.15 lakhs on an investment sum of Rs 9 lakhs.
SBI PSU Fund - Direct Plan - Growth
This PSU-focused fund from the house of SBI Mutual Fund commands an NAV of Rs 37.86. The expense ratio of the fund is pegged at 0.78 per cent. Some of the top holdings of the fund include Power Grid Corporation (PGCIL), GAIL (India), NTPC, Bharat Electronics, Coal India and SBI among others. This fund over 3 years has offered an annualized return of 43.24 per cent.
The scheme is benchmarked against the BSE PSU TRI index.
SIP in the fund can be kickstarted with a bare minimum sum of Rs 500. Rs 9 lakh investment in the scheme through a monthly SIP of Rs 25,000 in 3 years would grow to more than Rs 19.79 lakhs.
Aditya Birla Sun Life PSU Equity Fund - Direct Plan - Growth
The NAV of the fund is Rs 39.91. The expense ratio of the fund is pegged at 0.45 per cent. Some of the fund's top holdings include Power Grid Corporation (PGCIL), GAIL (India), NTPC, ONGC, Coal India, Bank of Baroda and SBI, among others. This fund over a 3-year period has offered an annualized return of 44.01 per cent.
SIP in the fund can be kickstarted with a bare minimum sum of Rs 100. Rs 9 lakh investment in the fund through a monthly SIP of Rs 25,000 in 3 years would turn to more than Rs 19.48 lakhs.