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Sunday, May 23, 2010

SBI PSU Fund - NFO Analysis

NFO Date: 17th May to 14th June 2010
Fund Features
Scheme Objective: To provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme 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.
Type of Scheme: An Open ended Equity Scheme
Bench Mark Index: BSE PSU index
Minimum Investment: Minimum of Rs. 5,000/- and in multiples of Rs. 1/- thereafter
Entry load/Exit Load: Entry Load- Nil
Exit Load-Exit within 3 years from the date of allotment - 1 %, Exit after 3 years - Nil
Plans/Options
Plans: Dividend and Growth Plan
Options: Dividend Payout and Reinvestment option
Fund Manager: Mr.Rama Iyer Srinivasan
Why invest in PSU Theme Now?
A Riskier World
• Substantial Increase in Public Debt
• The Euro Crisis
• Financial Sector Deleveraging
The India Story
• Strong Domestic Economy
• Demographics
• Incremental Flows
PSUs offer Better Risk-Return Trade Off
• PSUs are wealth creators of the nation, with strong fundamentals and are available at attractive valuations compared to broader markets.
• There may arise several disinvestment opportunities too which shall lead to unlocking of value in these companies.
Key Analysis:
• The BSE PSU index has consistently outperformed the other broad market indices by substantial margin.
• In phases of economic downturn while other indices have given negative returns BSE PSU index has given positive returns to the extent of 8% CAGR.
• The primary strategy would be to invest in the stocks of PSU companies.
• Endeavors to identify market opportunities & achieve sufficient diversification.
• Control liquidity risks and non-systematic risks by selecting well researched stocks with long & mid-term growth prospects for stability and possibility of returns.
• Investment in equities would be through primary & secondary market, private placement / QIP, preferential/firm allotments or any other mode as may be prescribed/ available.
Fund Manager Profile
NAME: Rama Iyer Srinivasan
EDUCATIONAL QUALIFICATION: M.Com, MFM
EXPERIENCE: Future Capital Holding - Head - Portfolio Management
Ideal for investors
• Interested in long term value unlocking in PSUs.
• Looking for diversification in their portfolio.
• Investment Horizon:- Long Term
• Risk Appetite:- High

4 comments:

Unknown said...

Hi, can someone tell how good this is?

MoneyVriksh.com said...

I think its an average fund. Check all details in its form

SBI PSU Fund Form

Srikanth Matrubai said...

SBI PSU Fund is an avoid.
While SBI has the mandate to invest upto 35% outside the PSU basket, Religare does not. While this may ensure diversification, this also means that the PSU THEME IS DILUTED IN SBI PSU FUND.

You can read more in my blog http://goodfundsadvisor.blogspot.com

Easy Stock Basics said...

very nice............