Investment Objective and Approach

The scheme seeks to provide opportunities for long-term growth 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. Their investment strategy is centred around long-term holdings, with the objective of generating high absolute returns. Within their PSU (Public Sector Undertaking) scheme, they put immense value on selecting top-tier PSU companies that match their particular investing framework.

The fund follows a focused approach by investing primarily in government-owned enterprises across various sectors including Oil & Gas, Power, Mining, Financial Services, and Industrials. Our portfolio includes companies with good earning margins, and we have seen significant improvements in the margins of public sector undertakings (PSUs). Additionally, many of the stocks in our portfolio are currently undervalued, offering an excellent buying opportunity for investors.

Key investment characteristics:

- Minimum 80% allocation to PSU equity and equity-related instruments

- Focus on undervalued PSU companies with strong fundamentals

- Bottom-up stock selection approach

- This mutual fund is particularly suitable for investors with an active investing style who seek high returns and possess a strong tolerance for risk.

Fund Managers

Richard Dsouza is the Current Fund Manager of SBI PSU Direct Plan Growth fund. However, there appears to be some conflicting information as The SBI PSU Fund is in expert hands Mr. Rohit Shimpi as the fund manager. His extensive experience and proven track record make him well-equipped to navigate the complexities of the public sector undertaking (PSU) space.

Rohit Shimpi's Background:

Rohit Shimpi joined SBI Funds Management Limited in 2006 as an Equity Analyst. He started managing the Offshore Fund in 2011 before moving on to the Portfolio Management Services (PMS) division in 2015. In 2018, Rohit moved to Mutual Funds division and is responsible for fund management and advisory services.

Prior to SBIFM, he has been associated with SGA News Ltd (TV18 Group) as a Research Analyst for the firm's flagship financial news channel, CNBC-TV18 and as a Researcher with JP Morgan's offshore research centre. Rohit is a Commerce graduate from Mumbai University and has completed his Post Graduate Diploma in Business Management (PGDBM) with specialization in Finance from Sydenham Institute of Management Studies. He is also a Charterholder of the CFA Institute, USA.

He joined the firm in 2006 as an Equity analyst and later managed the company's offshore fund from 2011 to 2015, enhancing his understanding of global market dynamics and their impact on domestic PSU stocks. His ability to analyse market trends, identify undervalued PSU companies, and construct a diversified portfolio is likely to benefit the investors of the SBI PSU Fund.

About the Fund House (AMC)

SBI Funds Management Private Limited is one of India's leading asset management companies with a rich heritage. With 30 years of rich experience in fund management, SBI Funds Management Ltd. (SBIFML) bring forward their expertise by consistently delivering value to their investors. They have a strong and proud lineage that traces back to the State Bank of India (SBI) - India's largest bank. They are a Joint Venture between SBI and AMUNDI (France), one of the world's leading fund management companies., SBI currently holds 63% stake in SBIFMPL.

Key Highlights of SBI Mutual Fund:

- AUM ₹1,076,363.82 Cr.

- No. of Schemes 246

- Joint venture between State Bank of India and AMUNDI (France)

- They have been actively managing their investor's assets not only through our investment expertise in domestic mutual funds, but also offshore funds and portfolio management advisory services for institutional investors.

The AMC has established itself as a trusted partner for retail and institutional investors, leveraging the expertise of its global partnership with AMUNDI and the domestic strength of SBI's extensive network.

Should I Invest in SBI PSU Fund?

SBI PSU Fund is suitable for investors who:

Ideal Investor Profile:

- Have high risk tolerance and long investment horizon (minimum 3-5 years)

- Seek exposure to government-backed enterprises

- SBI PSU Fund Direct Plan Growth could be a considerable option for you if you are seeking a regular mode of income, given you have a very high risk appetite. To reduce the downside risks associated and ensure that your returns are more predictable, the suggested investment horizon is considered to be three years or more.

Investment Considerations:

- This is a fund that invests mainly in the shares of government-owned companies. We believe that investors should avoid funds that have a narrowly defined investment mandate such as this one. Instead, they should invest in flexi-cap funds which provide complete freedom to the fund management team to invest in companies from which it expects maximum gains.

- Warning: Do not invest in this, or any other PSU fund, if you need to redeem your investment in less than five years.

- But because these sectors tend to follow economic cycles closely, they can be very unpredictable and risky. This means there's a higher chance of big swings in their prices, which could affect your investment returns.

Key Financial Metrics (as of August 28, 2025):

- Current NAV: ₹33.41

- AUM: ₹11,93,297 Cr

- Expense Ratio: 0.81%

- Minimum SIP Investment is set to ₹500. Minimum Lumpsum Investment is ₹5,000.

- Exit load of 0.50% if redeemed within 30 days.

FAQs

What is today's NAV of SBI PSU Fund?

The current NAV of SBI PSU Fund is ₹33.41 as of August 28, 2025. NAV is updated daily after market closure on business days.

What is the AUM of SBI PSU Fund?

The Assets Under Management (AUM) of SBI PSU Fund is ₹11,93,297 crores as of August 28, 2025, making it one of the larger thematic funds in the market.

What is the expense ratio of SBI PSU Fund?

The expense ratio of SBI PSU Fund is 0.81%, which represents the annual fee charged by the fund house for managing your investments.

What are the returns of SBI PSU Fund since inception?

SBI PSU Fund has delivered a CAGR of 12.21% since its inception in January 2013. Past performance does not guarantee future returns.

What is the minimum SIP amount to invest in SBI PSU Fund?

The minimum SIP amount for SBI PSU Fund is ₹500 per month, while the minimum lumpsum investment is ₹5,000.

How do I invest in SBI PSU Fund?

You can invest in SBI PSU Fund through Allvest platform by completing your KYC, selecting the fund, choosing SIP or lumpsum option, and making payment online.

How to start a SIP in SBI PSU Fund?

To start SIP, log into your Allvest account, select SBI PSU Fund, choose SIP option, set amount and date, and complete the payment process.

How do I automate an SIP in SBI PSU Fund?

After creating SIP on Allvest, set up auto-pay through net banking, UPI or e-mandate to ensure seamless monthly investments without manual intervention.

How can I withdraw/redeem my investment in SBI PSU Fund?

You can redeem your SBI PSU Fund units through Allvest by selecting the fund, choosing redemption amount, and confirming the transaction. Redemption proceeds are credited in 2-3 working days.