SBI PSU Fund

SBI PSU Fund is managed by Ajit Dange. The 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 and in debt and money market instruments issued by PSUs and others. If you are a new investor, keep a close watch on its performance. New investors can safely skip this fund.

Where does SBI PSU Fund invest your money?

SBI PSU Fund is a equity oriented large cap fund which means your money would be invested in stocks of large cap companies. Large cap stocks bring in stable returns while bumper returns are provided by mid and small cap companies. This fund has 65.19% exposure to large companies, 27.95% exposure to medium sized companies and about 6.87% exposure to small sized companies.

 

Suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
Not suitable for what?
  • Creating wealth
  • Lifestyle needs
How has SBI PSU Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in July 2010, your value of investments would sadly be around Rs 85316. The performance has not been similar to other funds in this category. 

Assume you had invested Rs 10,000 every month in SBI PSU Fund through SIP since inception today you would just have around Rs 2.90 lakhs.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
What are the charges applicable?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of SBI PSU Fund is 2.79%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.    

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. 

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