100% Annual Returns: Four Top-Performing PSU Mutual Funds Surpass Expectations

Public Sector Undertaking (PSU) mutual funds have gained significant attention in recent times due to their impressive performance. In the last year, several PSU mutual funds have delivered outstanding returns, with some even surpassing the 100% annual return mark. This remarkable achievement has made these funds a focal point for investors seeking substantial growth in their portfolios.

1. SBI PSU Fund

The SBI PSU Fund has been a standout performer in the mutual fund space, consistently delivering high returns. Over the past year, this fund has benefited from the strong performance of the PSU sector, particularly in energy, banking, and infrastructure. The fund's strategy of focusing on well-established, government-owned companies with strong fundamentals has paid off, providing investors with over 100% returns in the last year.

2. UTI PSU Equity Fund

The UTI PSU Equity Fund is another top-performing mutual fund that has exceeded expectations. This fund primarily invests in equities of public sector enterprises (PSEs), which have shown resilience and growth amid economic recovery. The fund's diversified portfolio, which includes sectors such as oil and gas, power, and financial services, has contributed to its stellar performance. Investors have seen their investments more than double in value, thanks to the fund's robust returns.

3. ICICI Prudential PSU Equity Fund

ICICI Prudential PSU Equity Fund has also emerged as a top performer, offering over 100% returns in the past year. The fund focuses on investing in a broad spectrum of PSU stocks, with a particular emphasis on sectors like energy, banking, and metals. The government's push for infrastructure development and reforms in the banking sector have further fueled the growth of the underlying assets, driving the fund's impressive performance.

4. HDFC PSU Fund

Through focusing on the opportunity that is associated with the public sector units of India, HDFC PSU Fund has been able to post higher returns. The investment approach of the fund is to invest in companies with high financial strength and dominant market position in the respective industries. Due to the recent improved performance of the PSUs backed by positive government policies, this fund has been able to give over 100% return in the last one year making it an investor’s darling for high returns.

Other factors they point to that led to high returns include:

Government Policies and Reforms: Some reasons for such high results of these funds are reforming and infrastructures investment of the Indian government for PSU enterprises. Lifting of restrictions, policy changes that have served to improve efficiency and profitability of PSUs has gone a long way in improving investor confidence and this pushing up stocks.

Economic Recovery: When the going get tough in India, public sector companies are no exception to feel the heat but now the fortunes are changing as the economy regains. This economic upturn has had a knock on effect on PSU stocks with mutual funds which have invested in these companies earning better returns.

Diversification Benefits: This is a benefit of these PSU mutual funds because it is less risky to invest in a number of sectors and companies at a single period. Such diversification allows for a decrease in the level of risk related to sector-specific declines and improve the level of returns.

Conclusion

Reflecting on the recent operations of these mutual funds shows that PSU stake holders have the potential of earning sizeable returns in operations of PSEs. Given some of the funds reaching nearly 100 percent in terms of annual returns, they have turn out to be a good investment option especially for those intending to get value from growth of India’s PSU segment. Thus, the interest to such a type of security has its reasonable explanation avoiding, however, extreme risk –average risks are much more effective in the long and non-predictable run!