SBI Mutual Fund unveils PSU Fund

By siliconindia news bureau

Tuesday, May 18, 2010

Mumbai: SBI Mutual Fund has launched an open-ended equity scheme, SBI PSU Fund, which will invest in stocks of public sector undertakings. The new fund offer opened on May 17 and will 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," said SBI Mutual Fund Managing Director and Chief Executive Officer Achal Kumar Gupta.

SBI Mutual Fund'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 the company was targeting a collection of more than Rs. 1,000 crore from this PSU fund.

"PSUs have the 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 added.

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