Will suggest mutual fund managers to include PSU stocks in their portfolios: DIPAM

Arunish Chawla underlined that Central Public Sector Enterprises (CPSEs) declared record dividends of Rs 1.5 lakh crore in FY25

The department of investment and public asset management (DIPAM) on Tuesday said it will encourage mutual fund managers to consider public sector undertakings (PSUs) as part of their core investment portfolios, highlighting the robust value and dividend returns delivered by state-run firms in FY25.

“While the market capitalisation of PSUs is only 10 percent of overall market cap, they have distributed 25 percent of overall dividends. We would suggest to fund managers to include PSU stocks in their portfolios so that common investors, senior citizens and minority shareholders can deploy their savings productively and partake in the value created by the PSUs,” DIPAM secretary Arunish Chawla said during a media briefing on April 9.

Chawla underlined that Central Public Sector Enterprises (CPSEs) declared record dividends of Rs 1.5 lakh crore in FY25, with the government's share amounting to Rs 74,016 crore – reflecting strong performance and consistent shareholder returns.

In a bid to make Indian equity markets more inclusive and rewarding for retail investors, the government also plans to push for greater accountability in the private sector when it comes to dividend distributions.

“We would also nudge the private corporates to declare fair dividends to their minority shareholders so that together we can make our share markets a better place for the aam administration,” Chawla stated.