Equity mutual fund schemes that bet on the state-owned Public Sector Undertakings (PSU) have made a strong comeback in the past year and outperformed all the other equity-oriented mutual fund categories. Of the four schemes in the category, CPSE ETF put-up a commendable show over the last one year by delivering a 35%-return, followed by Aditya Birla SL PSU Equity Fund (10%). Invesco India PSU Equity and SBI PSU Fund yielded about 5%. Mahesh Patil, Chief Investment Officer, Aditya Birla Sun Life MF says, “Compared to private banks, PSU banks performed well. IT, pharma, and some other sectors have performed poorly over the past year, while PSU and oil pack have either not sold or performed well due to increasing oil prices. Individual stocks which are considered as utility stocks, have outperformed private companies. Individual companies have given returns of around 30 to 35 percent in a year. Due to the convergence of all the above criteria, only PSU enterprises performed well." Here are the top 10 stocks among the four PSU equity oriented schemes. Data as on April 30, 2022. Source: ACEMF.
2/11
NTPC: Stock of NTPC has been the topmost holding of the three PSU equity schemes --Aditya Birla SL PSU Equity (10% of net assets), CPSE ETF (22%) and Invesco India PSU Equity Fund (9.9%) as per the latest data of April 30, 2022. It has been one of the top three holdings in the portfolio of SBI PSU Fund. Meanwhile, there were 236 other equity schemes, too, that held the stock in their portfolio. Stock brokers such as HDFC securities and ICICI Direct gave 'buy' recommendations on the stock (based on the reports released over the last three months).
3/11
Power Grid Corporation Of India: Stock of this power transmission company has been one of the top three holdings of all four PSU equity schemes. There were 165 other equity schemes, too, that held the stock in their portfolio (as of Apr 2022). Stock broker Geojit Financial Services' advice was to 'hold' the stock.
4/11
Oil & Natural Gas Corporation: This stock has been one of the top three holdings of CPSC ETF (17.4% of net assets as of April 2022). Other three schemes, too, had significant allocation to the stock. Stock brokers like Motilal Oswal and Prabhudas Lilladher gave a 'buy' call on the stock.
5/11
Coal India: Stock of this coal mining and refining company has been one of the top three stocks in the portfolio of Aditya Birla SL PSU Equity. There were 30 other equity-oriented schemes that recently added the stock to their portfolios in the last three months. Stock broker Motilal Oswal gave a 'buy' call on the stock.
6/11
Bharat Electronics: All the four schemes had notable allocation to the stock. Another 142 equity schemes were also invested in the stock. Stock brokers like ICICI Direct and Prabhudas Lilladher gave 'buy' calls on the stock.
7/11
NMDC: Three PSU equity schemes Aditya Birla SL PSU Equity, CPSE ETF and SBI PSU Fund had exposure to this mineral producing company's stock as of April 2022. There were 71 other equity schemes including DSP Natural Res & New Energy, SBI Contra and Kotak Balanced Advantage that had invested in the stock as of April 2022.
8/11
State Bank Of India: Stock of this PSU Bank major was held by the three PSU equity schemes --Aditya Birla SL PSU Equity, Invesco India PSU Equity and SBI PSU Fund. There were 418 other equity schemes, too, that held the stock in their portfolio (as of Apr 2022). Brokers such as HDFC securities, SMC online and LKP securities gave 'buy' calls on this stock during May.
9/11
Bank Of Baroda: Three PSU equity schemes - Aditya Birla SL PSU Equity, Invesco India PSU Equity and SBI PSU Fund - had exposure to the stock. ICICI Direct and LKP securities amongst the brokers that gave a 'buy' recommendation on the stock in May.
10/11
National Aluminium Company: PSU schemes Aditya Birla SL PSU Equity, Invesco India PSU Equity and SBI PSU Fund had allocation in the stock. Axis Direct and Motilal Oswal, among others, gave 'buy' recommendations on the stock in May.
11/11
Container Corporation Of India: Three PSU equity schemes Aditya Birla SL PSU Equity, Invesco India PSU Equity and SBI PSU Fund had exposure to the stock. It received 'buy' recommendations from brokerages ICICI Direct and Motilal Oswal in the month of May.
