The fund is diversified in nature and focuses on long-term growth and appreciation of capital.
Aditya Birla Sun Life AMC Limited on December 9 launched Aditya Birla Sun Life PSU Equity Fund, an open-ended equity scheme.
Aditya Birla Sun Life AMC is a subsidiary of Aditya Birla Capital and also, the investment manager to Aditya Birla Sun Life Mutual Fund (ABSLMF).
"The PSU equity fund focuses on investing predominantly in public sector undertakings (PSUs) or companies where the government (state or central) is a majority shareholder with at least 51 percent shareholding," said the media release.
The fund is diversified in nature and focuses on long-term growth and appreciation of capital. As per the press release, the minimum application amount for this fund is Rs 500 and in multiples of Rs 1 thereafter, during the new fund offer period.
Commenting on the launch, A. Balasubramanian, MD & CEO of Aditya Birla Sun Life AMC Limited, said: "PSUs typically dominate sectors that are core to the economy and its growth such as utilities, oil & gas, metals & mining, infrastructure, defence, engineering, banking, etc. Often, they have a monopolistic position or large scale, with a strong return on equity (RoE) and steady cash flow from operations which allow them to give out high dividends. Many of these have characteristics of blue-chips in their respective industries."
"Most PSUs are quality companies with strong balance sheets and the potential to get re-rated over a period of time. The government’s increasing focus on strategic divestment plans will also help unlock value for some of the PSUs. This combined with the attractive valuations and their underlying intrinsic value make them a compelling investment choice," added Balasubramanian.
Aditya Birla Sun Life Mutual Fund is co-sponsored by Aditya Birla Capital Limited and Sun Life (India) AMC Investments Inc.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.