SBI Mutual Fund launches PSU Fund
SBI Mutual Fund on Monday launched SBI PSU Fund, an open-ended equity scheme which will invest in the stocks of public sector undertakings.business Updated: May 17, 2010 18:30 IST
SBI Mutual Fund on Monday launched SBI PSU Fund, an open-ended equity scheme which will invest in the stocks of public sector undertakings.
The new fund offer opens on Monday and would close on June 14.
"PSUs have a tremendous growth potential. They have helped in creating a diversified industrial base for the country. With their strong fundamentals and sound financials, they offer a good investment avenue," SBI Mutual Fund Managing Director and CEO, Achal Kumar Gupta, told reporters in Mumbai.
SBI MF's PSU Fund would invest in stocks of domestic public sector undertakings and in debt and money market instruments issued by PSUs.
The company's Chief Marketing Officer, R S Srinivas Jain, said that the company was targeting a collection upwards of Rs 1,000 crore from this PSU fund.
"PSUs have necessary scale and size which is critical at this stage of economic growth in India. PSU stocks are available at reasonable valuations despite being consistent wealth creators and holding strong potential for future growth," SBI Mutual Fund Chief Investment Officer, Navneet Munot, said.
In the current global context, PSU funds fit nicely into any equity portfolio from a risk-reward perspective, he said.