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I have invested Rs 10,000 in SBI PSU. What is the future of this plan?

The fate of this fund’s performance is linked to policies that impact the functioning of PSUs
By OLM Desk | July 16, 2017

I have invested Rs 10,000 in SBI PSU. What is the future of this plan?

Jay Ganguly

Launched in July 2010, this scheme seeks to provide opportunities for long-term growth through an active management of investments in a diversified basket of equity stocks of domestic Public Sector Undertakings (PSUs) and in debt and money market instruments issued by PSUs and others. The fate of this fund’s performance is linked to policies that impact the functioning of PSUs. For instance in the past one year, it has posted over 27 per cent returns, but over a three year span it has an annualised 7 per cent return. This variance will always exist because of the fund being a thematic one. It is not the best choice if this is your first fund, as you should invest in a well diversified fund if you are new to investing. For the long term, you could benefit from the economic cycles that benefit PSUs in particular.

 

olmdesk@outlookindia.com

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