Check this PSU mutual fund: Nearly 60% returns in six months
Despite the impression that private sector companies are more efficiently run, some of the public sector units have emerged as prominent players in some of the significant sectors of the economy and the stock market has recognised their performance.
Kolkata: PSU stocks are one of the fastest moving sectors in the Indian equity markets in the past several months. The returns have been captured in the returns of PSU mutual funds too. Let's look at a PSU fund that has generated the top returns in the past six months. Invesco India PSU Equity Fund has generated 58.65% returns (direct growth) in this period. It is benchmarked against the BSE PSU TRI.
PSU thematic funds are open ended equity mutual funds that invest in stocks of publicly listed PSUs. These are thematic funds and are suitable for aggressive investors. The government has divested quite a few PSU firms and got them listed on the stock exchanges. This gave rise to PSU mutual funds. Though there is a general impression that private sector companies are more efficiently run than government-owned ones, several PSUs have a loft of heft in come of the vital sectors of the industry. The Maharatna and Miniratna companies are appropriate examples. PSU mutual funds have heavy investments (at least 80%) in PSU stocks. In the past six months PSU stocks have performed well.
According to reports, Invesco India PSU Equity Fund has 96.66% investment in domestic equities -- 47.47% is in large cap stocks, 20.87% in mid cap stocks and 8.01% in small cap stocks. The fund has a NAV of Rs 77.64 as on July 16, 2025. The fund size is Rs 1,438.55 crore and an expense ratio of 0.94%. The fund is labelled as having very high risk on the risk-o-meter.
Returns of Invesco India PSU Equity Fund
The fund was set up in January 2013. The lump sum returns show that the annualised returns in the past one year stood at (-)6.11%, in the past two years it was at 36.95%, in the past three years it was at 39.86%, in the past five years it was at 31.51% and in the past 10 years it stood at 17.85%.
When it comes to SIP returns, the rates are as follows:
14.25% (annualised returns) in one year
23.53% in two years
32.5% in three years,
31.69% in five years and
22.64% in 10 years
Top stocks in the fund
The following are the top stocks, the sectors they operate in and their share (percentage of total holdings) of the fund as on June 30, 2025.
Bharat Electronics (Sector: Aerospace & defense): 9.31%
Bharat Petroleum Corporation (Refineries & oil marketing): 7.95%
State Bank Of India (Public sector bank): 7.78%
Hindustan Aeronautics (Aerospace & defense): 7.67%
Power Grid Corporation of India (Power - transmission): 7.50%
National Thermal Power Corporation (Power generation) 7.18%
Hindustan Petroleum Corporation (Refineries & marketing): 4.76%
NTPC Green Energy (Power generation): 4.30%
GAIL (Gas transmission/marketing): 4.10%
NHPC (Power generation): 4.07%
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