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MF Tracker: Can this 3 and 5 year top performer PSU fund extend its winning streak?
Launched in July 2010, the fund is not given any rating by Morningstar and Value Research. For this fund, according to Value Research, each category must have a minimum of 10 funds for it to be rated, which is not the case for the PSU category as there are five funds. As per Morningstar, this category is a non rateable category fund.
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Based on the trailing returns, the fund has outperformed its category average in the last three and five years whereas in the last 10 years, it failed to outperform its benchmark. As in the last three years and five years, the fund gave 32.14% and 28.74% respectively, the category average was 30.60% and 27.94% respectively. Since its inception, the fund has delivered a CAGR of 8.35%. Note, the data for the benchmark BSE PSU TRI was not available to compare the performance of the fund.
On the basis of daily rolling returns, the fund has delivered a CAGR of 15.23% in the last five years, 8.27% in the last seven years, and 7.79% in the last 10 years.
A monthly SIP made in the fund since its inception would have been Rs 59.25 lakh with an XIRR of 13.67%. A lump sum investment of Rs 1 lakh made in the fund since its inception would have been Rs 3.48 lakh with a CAGR of 8.34%.
How does the fund house decode the performance?
PSU stocks have been strong performers, both on an absolute basis and relative to the broader market post 2020, due to an earnings revival and valuation re rating and this tailwind clearly aided our fund’s performance, Rohit Shimpi, Fund Manager, SBI PSU Fund shared with ETMutualFunds.Top contributors for the fund over the last five years have been our holdings in PSU banks and financial institutions, industrials including defence, utilities including electric utilities, energy and metals. These stocks were aided by improvement in asset quality of PSU banks, growth in defence and power, and a positive commodity cycle impacting metals.
Our fund’s strategy has not changed significantly over time, however in mid 2024, we did feel that certain pockets within PSUs were seeing exuberance, and we realigned the portfolio towards large cap stocks within the PSU space. Overall, while being highly stock specific, we remain more positive on large cap stocks within the PSU space at this point in time, Shimpi further said.
What experts say on SBI PSU Fund
According to an expert, with the fund comfortably outperforming its category average, this strong performance marks a sharp improvement over its long term historical returns and reflects the powerful rally seen in public sector stocks in recent years.
Abhishek Bhilwaria, BhilwariaMF (AMFI registered MFD), shared with ETMutualFunds that the primary drivers of this performance have been favourable macroeconomic conditions for PSUs and focused portfolio positioning. The government led reforms, balance sheet clean ups in public sector banks, higher capital expenditure and policy support for infrastructure, defence and energy companies have significantly improved earnings visibility across the sector.
“In addition, the fund has maintained high exposure to core PSU segments such as financial services, energy and power, which have been among the biggest beneficiaries of the economic cycle.”
He further said that the fund has also benefited from a concentrated portfolio approach, with its top holdings accounting for over half of its assets and stocks such as State Bank of India, Bharat Electronics and NTPC have delivered strong returns and played a major role in boosting overall fund performance, and a measured allocation to mid cap PSUs further enhanced returns during periods of market momentum.
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As per the last available portfolio data, the top 10 stock holding of the fund is SBI with an allocation of 17.80%, followed by NTPC of around 7.70%, and Bank of Maharashtra with an allocation of 3.65%.
Based on the sectoral allocation, the fund holds 30.05% in banks, 13.49% in power, and 13.33% in crude oil. Around 12.32% is allocated to capital goods, 8.53% to gas transmission, and 6.30% to mining.
So has the fund benefited more from stock selection or sector trends? Bhilwaria said that the SBI PSU Fund has benefited more from broad sector trends, with stock selection acting as a differentiating factor rather than the primary driver and the re rating of the PSU sector as a whole has been the foundation of the fund’s strong returns.
“Improved asset quality in PSU banks, sustained government spending on infrastructure and defence, and renewed investor confidence in public sector enterprises lifted the entire category. This is evident from the fact that average PSU funds have also delivered strong multi year returns, indicating that the rally was sector wide.”
However, SBI PSU Fund’s ability to consistently rank at the top of the category stems from its concentrated exposure to high conviction names and its willingness to take calculated bets across market capitalisations. By overweighting leaders such as SBI and Bharat Electronics and maintaining exposure to select mid cap PSUs, the fund was able to capture incremental gains over peers.
The fund holds 97.12% in equity, 0.08% in debt, and 2.80% in others. Based on market capitalisation, the fund holds 68.95% in large caps, 21.21% in mid caps, 2.89% in others, and 6.96% in small caps.
Should one focus on this sector now post Budget 2026?
Bhilwaria said that following the Union Budget 2026, the outlook for PSU funds has turned more cautious in the near term. PSU bank stocks corrected sharply after the budget due to the absence of fresh capital infusion announcements and profit booking after a strong pre budget rally and this highlights the sensitivity of PSU stocks to policy signals and market expectations.
“That said, the longer term structural story remains intact. The government’s continued emphasis on capital expenditure, particularly in power, defence, railways and infrastructure, supports earnings growth for several PSU companies. As a result, PSU funds may still offer opportunities, but a selective and disciplined approach is essential rather than aggressive lump sum allocations.”
And lastly, given their very high risk profile, sectoral and thematic funds such as PSU funds should form only a small part of an investor’s portfolio. Most experts recommend limiting exposure to a single sector fund to around 10% of the overall portfolio.
He further said that these funds should be treated as satellite investments, while the core portfolio remains anchored in diversified equity funds and investors whose PSU allocation has increased significantly due to past rallies may also consider rebalancing to manage risk.
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Key risk ratios and investment style
The PE and PBV ratio of this fund were recorded at 19.66 times and 3.12 times respectively whereas the dividend yield ratio was recorded at 2.39% as of December 2025.
ETMutualFunds analysed the other key ratios of the fund over a three year period. Based on the last three years, the scheme has offered a Treynor ratio of 2.15 and an alpha of 0.18. The Sortino ratio of the scheme was recorded at 0.82. The return due to net selectivity was recorded at 0.12 and return due to improper diversification was recorded at 0.05 in the last three years.
The investment style of the fund is to invest in growth oriented stocks across large cap market capitalisations.
Others in PSU basket
Apart from SBI PSU Fund, there are three other actively managed funds in the category which have completed three years of existence in the industry. Invesco India PSU Equity Fund gave 31.74%, Aditya Birla SL PSU Equity Fund gave 29.49%, and ICICI Prudential PSU Equity Fund gave 29.03% in the last three years.
Post seeing strong performance by these funds, what is the outlook of these funds? The expert said that the outlook for the PSU sector in early 2026 is one of selective long term opportunity combined with near term volatility. Fundamentally, many PSUs are in a stronger position than in previous cycles, with healthier balance sheets, improved governance and steady cash flows and several companies continue to offer attractive dividend yields and benefit from government backed order visibility.
“However, market sentiment has become more discerning. Much of the valuation re rating seen over the past few years is already priced in, particularly in PSU banks. Budget related uncertainty, evolving governance reforms and ambitious disinvestment targets have added to short term fluctuations. As a result, broad based sector rallies may be limited going forward.”
He further said that for PSU funds, this suggests a phase of consolidation rather than runaway gains. Performance is likely to be driven by stock specific fundamentals rather than pure sector momentum. Investors should approach PSU funds with a medium to long term horizon, an ability to tolerate volatility and a clear understanding that returns may be uneven, and a selective and measured exposure remains the most prudent strategy in the current environment.
One should always consider risk appetite, investment horizon, and goals before making any investment decisions.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
If you have any mutual fund queries, message ET Mutual Funds on Facebook or Twitter. We will get it answered by our panel of experts. Do share your questions at ETMFqueries@timesinternet.in along with your age, risk profile, and Twitter handle.
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Airport organisation says queues could last up to six hours over the summer holidays.
The OMO received bids of ₹87,161 crore, and three out of the seven bonds in the auction were accepted at lucrative levels than market prices, treasury heads said.
The 7.18% GS 2033 paper saw the most demand, with ₹26,406 crore offered, of which the RBI accepted ₹20,346 crore. While the 6.92% GS 2039 paper saw the least demand with markets offering ₹1,999 crore, of which the RBI accepted ₹1,780 crore.
A ₹50,000 crore Open Market Operation auction saw better-than-expected demand, leading to a rally in bond yields. The 10-year benchmark yield dropped four basis points to 6.65%. This operation, part of the RBI’s liquidity infusion measures, is expected to move system liquidity into a comfortable surplus.
“The OMO was definitely better than expected and as soon as the cut off prices were released, the 10-year paper saw a rally. The RBI took some bonds at lucrative levels than the market, especially the 6.33% GS 2035 paper,” said Gopal Tripathi, head of treasury at Jana Small Finance Bank.
The price of 6.33% GS 2035 paper was trading at 97.97, while the RBI accepted the paper at 98.18.
Similarly the 6.28% GS 2035 paper was trading at a price of 98.68, while the RBI accepted the paper at 98.73, CCIL and RBI data showed.
The OMO auction was part of the RBI’s recent liquidityinfusing measures and marked the final operation in the current OMO calendar.
Experts do not expect additional steps in the near term, as system liquidity is likely to move into a comfortable surplus once the proceeds from this OMO auction are fully infused into the banking system.
“I do not expect any immediate announcement on liquidity in the policy on Friday. With this OMO auction, the system liquidity will be around ₹2.50 lakh crore. Additionally, the pressure on rupee is lifted after the trade deal, hence outflows via intervention, if any, would be minimal” Tripathi said.
Banking system liquidity stood at a surplus of ₹1.95 lakh crore on Wednesday.
Pfizer CEO Albert Bourla discusses Pfizer’s Q4 adjusted earnings and the competitive landscape for weight-loss drugs on ‘The Claman Countdown.’
President Donald Trump unveiled TrumpRx.gov, a new government-backed website aimed at giving Americans access to discounted prescription drugs.
Speaking at the website launch Thursday evening at the White House, Trump argued that Americans have long paid far more for prescription drugs than consumers in other countries and called the price differences unprecedented.
“Americans have long been paying the highest drug prices anywhere in the world, while other countries often paid pennies on the dollar for the exact same drugs,” Trump said. “We were essentially subsidizing the entire world by hundreds of billions of dollars every year.”
He added that despite accounting for a small share of the global population, Americans bear a disproportionate share of drug costs.
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President Donald Trump announces the launching of the TrumpRx.gov prescription website on Thursday at the White House in Washington, D.C. (Pool / Fox News / Fox News)
“The United States is just 4% of the world’s population and consumes only 13% of all prescription drugs,” he said before confirming new agreements would change that dynamic.
“Under the agreements my administration has negotiated, the United States will pay the lowest price paid by any other country,” he said. “We’re taking the lowest price anywhere in the world. That’s the price you’re going to be paying,” Trump added.
“They’re going way down for the United States — by differences of as much as 300, 400, 500, even 600%” Trump said. “In some cases, even more.”
Trump announced the website at a White House event alongside Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz and National Design Studio Director Joe Gebbia, the Airbnb co-founder advising the administration on digital design and user experience.
The initiative follows agreements between the Trump administration and 16 of the world’s largest pharmaceutical companies under so-called “most-favored-nation” pricing deals.
“All of these discounts and more will be available directly to consumers starting today at TrumpRx.gov,” Trump said, adding that 16 of the 17 largest pharmaceutical companies have signed on, with the remaining company expected to join.
HOUSE GOP SEEKS OFF-RAMP TO SKY-HIGH HEALTH INSURANCE COSTS FOR MILLIONS OF AMERICANS
President Donald Trump and Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz discuss the TrumpRx.gov prescription website, Thursday, at the White House in Washington, D.C. (Pool / Fox News / Fox News)
In exchange for exemptions from U.S. tariffs, participating drugmakers agreed to lower prices for the federal Medicaid program and extend those reduced prices to cash-paying consumers through TrumpRx.
Among the participating companies are Eli Lilly and Novo Nordisk, which agreed to cut prices on popular GLP-1 weight-loss drugs.
The administration said the agreements are expected to reduce monthly costs for Americans to an average range of $149 to $350.
The administration highlighted price reductions across a range of medications, including inhalers, HIV treatments, diabetes drugs and IVF medications.
The website slashes the price for popular weight loss drugs like Wegovy. (Michael Siluk/UCG/Universal Images Group via Getty Images / Getty Images)
Trump cited reductions in weight-loss drugs and inhalers, as well as fertility treatments.
“Novo Nordisk will be slashing the price of Wegovy from more than $1,300 to $199,” Trump said. “AstraZeneca is slashing the price of a common inhaler from $458 to $51.”
“We’re also delivering historic discounts for couples struggling with infertility,” he added, saying manufacturers would dramatically cut the cost of commonly used IVF drugs, including Gonal-F.
The TrumpRx.gov displays discounted prescription drugs, showing users the percentage savings off the original price and generating a coupon for each medication.
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Consumers can print the coupon or save it to a mobile wallet and present it at participating pharmacies to receive the discount at checkout. For specialty drugs, the site directs users to mail-order pharmacies that can deliver medications directly to their homes.
According to administration officials, purchases made through the website will generally not count toward insurance deductibles.
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Under the proposal, the benefit of offsetting positions across different expiries will not be available on the day of expiry for singlestock derivative contracts expiring that day.
The review follows feedback from market participants flagging potential risks arising from calendar-spread benefits on expiry days for single-stock contracts. A calendar spread is when a trader holds the same stock’s derivatives with two different expiry dates, which lowers margin because the positions offset each other. The risk appears on expiry day when the near-month contract expires and the hedge no longer exists. This leaves the trader exposed to one-way moves on the remaining position.
“It is clarified that the existing margin calculations for calendar-spread positions shall remain unchanged for calendar-spread positions involving all expiries other than the contracts expiring on a given day,” Sebi said in a circular. The new rule will take effect three months from the date of the circular.
Currently, for index derivatives, calendar-spread benefits are already unavailable on the day of expiry for contracts maturing that day.
Sebi said the proposal would align the treatment of calendar spreads in single-stock derivatives with that of index derivatives and give trading members sufficient time either to bring in additional margin on expiry day or roll over positions.
“In the absence of such formulation, there remains a risk of sudden increase in margin on the day following expiry of one leg of the calendar-spread position, with limited recourse available to trading members in case of margin shortfall or an open leg showing significant adverse price movement,” it added.
Apple CEO Tim Cook has pledged that he will lobby Washington on immigration amidst widespread deportation fears in the United States.
This comes after he was criticised over a memo released following his attendance at the “Melania” premiere held at the White House. The premiere was held just hours after the killing of Alex Pretti in Minneapolis.
Tim Cook Makes Promise to Lobby Washington on Immigration
According to Bloomberg’s Mark Gurman, Cook acknowledged that Apple has “team members across the US on some form of Visa.”
“I’ve heard from some of you that don’t feel comfortable leaving your homes,” he said during the meeting. “No one should feel this way. No one.”
Cook went on to assure employees that they have his word when it comes to lobbying Washington on immigration.
“For as long as I can remember, we have been a smarter, wiser, more innovative company because we’ve attracted the best and brightest from all corners of the world,” Cook told employees. “I am going to continue to lobby lawmakers on this issue. You have my word on that.”
Tim Cook’s Memo on Killing of Alex Pretti
As 9to5Mac’s report notes, the meeting comes after Cook was widely criticised for a memo he released following the shooting of Alex Pretti in Minneapolis.
“This is a time for deescalation,” he said in the memo. “I believe America is strongest when we live up to our highest ideals, when we treat everyone with dignity and respect no matter who they are or where they’re from, and when we embrace our shared humanity.”
Many have blasted Cook for the memo, which many say stopped short of criticising the US government for its immigration crackdown.
Given this, the report points out that Cook’s comments at the meeting can be taken as damage control.
Only time will tell if he really is true to his word.
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The goal for any Super Bowl ad this week is for consumers to take action after seeing their campaign instead of just watching.
For Fanatics Sportsbook, that has been the case even before kickoff after a viral Kendall Jenner ad that invoked the “Kardashian Kurse,” the long-running internet joke that any basketball player who gets close to the world-famous sisters becomes subject to.
Fanatics Betting & Gaming CEO Matt King said the ad has “exceeded our expectations,” and the digital sports giant is already seeing it paying dividends.
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Kendall Jenner with Fanatics Sportsbook for a 2026 Super Bowl commercial. (Fanatics Sportsbook / Fox News)
“We’ve seen a big spike in downloads, and we’re seeing that accelerate as we get closer to the game,” King said in a recent interview.
It was Jenner’s first-ever Super Bowl ad, and it sparked talk between football fans and casual “Big Game” watchers. Jenner even went on “The Tonight Show,” where she told Jimmy Fallon she would be backing the New England Patriots with a whopping $1 million bet.
If that wasn’t enough, one of her ex-boyfriends “affected” by the “Kardashian Kurse,” Phoenix Suns star Devin Booker, added to the viral aspect of the campaign with some Instagram back-and-forth with Jenner.
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It’s been a dream campaign for the brand, but one that King says is a tribute to everything Fanatics tries to do with every part of its vast sports and culture ecosystem.
“From day one, we were excited to partner with an icon like Kendall Jenner and, obviously, in today’s marketing world, doing something that kind of blends the social environment with the traditional media environment is truly a unique opportunity, but that’s the way you’re going to get maximum impact,” he explained.
“Dropping it on social and just seeing, frankly, the momentum and life it took on for itself was truly incredible. It’s the definition of going viral. You’re not the first person to tell me their wife or partner told them about the ad, which we absolutely love.
“So, really what it’s about is great creative execution with a great talent and dropped the right way that it took on the life of its own.”
Fanatics Betting & Gaming CEO Matt King is excited for another Super Bowl. (Fanatics / Fox News)
King added that most of the action so far has been on the Seattle Seahawks, meaning the public on Fanatics Sportsbook is fading, or going against, Jenner’s pick of the Patriots. That could change, though.
“We’re nowhere close to kickoff, so we have a lot more action to come in,” King said.
The Super Bowl is one of the most watched sporting events in the world every year, and with the legalization of sports gambling, the casual fan may try to place a bet. Whether it’s going with or against Jenner, guessing the correct Gatorade color poured on the winning coach or using Fanatics Markets, the company’s platform in the rapidly growing prediction market space, King emphasized the availability of responsible gaming tools.
“Responsible gaming obviously is important to us every day,” he said. “It is something where we want to put our tools, like deposit limits, front and center for everybody. When you get a lot of new users into the platform, a core part of our what we call our early-life journey for all users is to educate them about the tools that exist. The same will be true on Super Bowl Sunday for all new users to make them understand the tools are there in our experience with us and allow them to set limits if they want to.”
The Super Bowl ad campaign for Fanatics Sportbook with the Super Bowl on Sunday in Santa Clara completes a successful NFL season for the brand, which continues to find creative ways to break into a highly competitive industry.
Kendall Jenner arrives on “The Tonight Show” Jan. 28, 2026. (Todd Owyoung/NBC via Getty Images / Getty Images)
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“From our perspective, from the day we started this business, it was all about how we build a proposition that’s the best in the market,” King said. “We want consumers to kind of look at everything we offer together and say, “Fanatics is the best in the market.’
“We think, this football season, we really helped demonstrate we’re the best in the market, whether that’s the up to 10% FanCash you can earn, the Fair Play, the customer feedback on Fair Play has been truly incredible. If you look at social and the moments it happens, it’s a real differentiator.
“Candidly, our biggest challenge is really about awareness. So, our approach to growing the business is how do we focus on just raising awareness for all the things we can offer fans and have them recognize there is an alternative in the market that is superior? A lot of our work — you can see it in the Super Bowl campaign — is how we build awareness for the brand.”
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Treasury said it doesn’t plan to change note-and-bond auctions “for at least the next several quarters,” which was as expected.
It also continues to evaluate demand for different Treasurys as it considers increasing future auction sizes.
Using new language, the Treasury said it is monitoring Federal Reserve purchases of short-term Treasury bills and “growing demand for Treasury bills from the private sector.”
That signals officials think that they could lean more on bills for funding than in the past.
In recent trading, the yield on the 10-year Treasury note was 4.286%, according to Tradeweb, up from 4.272% on Tuesday.
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