For investors looking for high returns from public sector companies (PSUs), the SBI PSU Fund has been a top choice over the years. This fund, which primarily invests in leading government-owned companies across various sectors, has become one of the best performers in its category. Over the past decade, the SBI PSU Fund has multiplied investments fourfold, delivering strong returns even during market fluctuations.
Here’s a breakdown of its performance, portfolio, and who should consider investing in this fund.
Impressive 10-Year Return: 284% Growth
One of the standout features of the SBI PSU Fund is its excellent performance over the last decade. Investors who put in a one-time investment 10 years ago have seen their money grow significantly.
For example, a one-time investment of Rs. 1 lakh in 2013 would now be worth approximately Rs. 3,83,705, representing a total return of 284%.
| Investment Period | Annualized Return | Growth |
| 1 year | 66.76% | High |
| 3 years | 39.54% | Significant |
| 5 years | 29.45% | Strong |
| 7 years | 16.86% | Consistent |
| 10 years | 14.38% | Stable |
| Since Launch (2013) | 13.41% | Sustained Growth |
SIP Performance: 214% Absolute Return Over 10 Years
Investors who prefer to contribute through a Systematic Investment Plan (SIP) have also seen strong gains from the SBI PSU Fund. Those who invested Rs. 10,000 monthly for the last 10 years would have built a substantial corpus of Rs. 37,67,318, thanks to an impressive annualized SIP return of 21.65%.
The SIP returns have been strong across different time periods:
| SIP Period | Annualized SIP Return |
| 3 years | 41% |
| 5 years | 51.53% |
| 10 years | 21.65% |
| Since Launch (2013) | 20.25% |
If someone had started a monthly SIP of Rs. 10,000 at the fund’s inception, they would now have a substantial amount of Rs. 43,29,429 over 11 years.
Portfolio Composition of SBI PSU Fund
The SBI PSU Fund invests primarily in large public sector companies that operate across diverse sectors. This diversified portfolio includes industries like banking, energy, metals, utilities, and finance.
| Key Stocks | Sector |
| State Bank of India (SBI) | Banking |
| Power Grid Corporation | Energy |
| GAIL (India) | Energy |
| Bharat Petroleum | Oil & Gas |
| Bharat Electronics | Electronics |
| NTPC | Energy |
| NMDC | Metals |
| Bank of Baroda | Banking |
| SBI Life Insurance | Insurance |
| Petronet LNG | Oil & Gas |
| Coal India | Mining |
| LIC | Insurance |
Who Should Invest in SBI PSU Fund?
The SBI PSU Fund is well-suited for investors who want exposure to India’s top government companies across different sectors. These public sector companies (PSUs) provide diversification and the potential for long-term growth.
However, it’s essential to note that PSU stocks can be subject to market risks and concentration risks due to their focus on government-controlled companies. Therefore, this fund is recommended for those who have a higher risk tolerance and can withstand short-term market volatility in pursuit of long-term gains.
Is It a Good Investment?
The SBI PSU Fund has demonstrated consistent performance across various timeframes, making it a solid choice for investors looking to benefit from India’s public sector. With its strong historical returns, diversified portfolio, and positive outlook, it is a compelling option for those willing to invest with a medium to long-term horizon.
In conclusion, the SBI PSU Fund offers a promising opportunity to participate in the growth of India’s top public sector companies while benefiting from a well-managed, diversified equity portfolio.
