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Topic : BEST PSU FUND
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Finance & Accounts

 

Best PSU Fund to invest

Created by : Srikanth Shankar Matrubai, Advisor/Outside Consultant, http://goodfundsadvisor.blogspot.com  | 06 05 2010 16:44:23 +0000
Keywords : best psu fund to invest
Activity:  580 views;  last activity : 07 06 2010 20:18:09 +0000
 
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Religare PSU Fund is the Best Vs SBI/Sundaram PSU fund
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WHY RELIGARE SCORES OVER SUNDARAM/SBI : While most analysts would blindly recommend Sundaram/SBI PSU Fund over Religare PSU Fund., I would take a contra view and say AVOID SUNDARAM/SBI PSU FUND AND INVEST IN RELIGARE PSU EQUITY FUND. Here are the key reasons for the same : 1. Equities Outside PSUs : While Sundaram has the mandate to invest upto 35% outside the PSU basket, Religare does not. While this may ensure diversification, this also means that the PSU THEME IS DILUTED IN BOTH SBI SUNDARAM PSU FUND. 2. Overseas Investments : Sundaram again can invest upto 35% in Overseas which is laughable considering that this is a Public Sector Fund. Religare will be 100% investing in India which ensures NO CURRENCY RISK, NO COUNTRY RISK, NO GEO-POLITICAL RISK. 3. Exposure to Banks in Benchmark : Sundaram has CNX PSE as its Benchmark which has NIL Exposure to Banks, where as Religare has BSE PSU as its Benchmark which has around 20% exposure to Banks. It is shocking how Sundaram tripped on this. BANKING AS A SECTOR IS IGNORED IN SUNDARAM PSU FUND. My blog http://goodfundsadvisor.blogspot.com has more details
By Srikanth Shankar Matrubai, Advisor/Outside Consultant, http://goodfundsadvisor.blogspot.com  06 05 2010 16:44:23 +0000
 
Top Argument
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I would prefer SBI PSU fund, than any other funds. Because there are long-term growth opportunities with SBI funds and it is less risky compared to many other sector funds.  Few advantage of this are the fund charges 1% towards exit load if you decide to sell out before completing three years from the date of allotment. Investors are offered both growth and dividend plans. Dividend payout and dividend reinvestment options are available. 

:)
By Latha Baskar, Accounts Manager, L & T Infotech  06 07 2010 11:57:00 +0000
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SORRY LATA MY LIMITED KNOWLEDGE ABOUT THE TOPIC DOES NOT HELP ME. 


By s.baalu , Consultant, XYZ LTD  | 06 24 2010 12:14:42 +0000
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Mr.Vipin,

This argument is in essence a argument on why invest through mutual funds and not directly. Investment in Stocks is a time-consuming afffair. And most importantly, you require expertise to analyse the Balance Sheet and ability to foresee the future scope of Companies. However, by investing in a Mutual Fund, you are hiring a Fund Manager for a ridiculous price. So, investing in Mutual Funds not only saves you time but also enables your money to be handled by a Equity Expert.

 
By Srikanth Shankar Matrubai, Advisor/Outside Consultant, http://goodfundsadvisor.blogspot.com  | 06 21 2010 16:58:33 +0000
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Here are the key reasons for the same :1. Equities Outside PSUs :While SBI has the mandate to invest upto 35% outside the PSU basket, Religare does not. While this may ensure diversification, this also means that the PSU THEME IS DILUTED IN SBI PSU FUND.
2. High Exit Load : While Religare has an Exit Load of 1% only upto 1 year, as with most funds, shockingly, SBI has exit load for 3 years.
3. RELIGARE'S BETTER PERFORMANCE : Religare has beaten SBI in almost all funds in terms of performance over 1,2,3 year period. It just shows Religare has performance to back up its claim of being a better fund to invest in.

SPECIAL TIPReligare has already invested its Assets. More buying in the PSU Stocks by the new Funds like Sundaram PSU Fund and SBI PSU Fund will benefit Religare PSU Equity Fund which is already fully invested. The Scope for Value Unlocking of Public Sector Undertakings is huge and PSU funds  are poised to take advantage of these.
If you are convinced about the PSU story, then you know which fund is a better proxy to play on the theme.
By Srikanth Shankar Matrubai, Advisor/Outside Consultant, http://goodfundsadvisor.blogspot.com  | 06 21 2010 16:56:26 +0000
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Mr. Srikanth

I agree & supporting your words with your explanation.

But i don't think that it is easier task to find out a good Fund manager who will suggest the right fund at right time to retail investors. Because i agree that MF investment saves our time but may be you also agree with the fact that Mis-Selling act is done by many executives related to different AMCs.

They ask investor to invest in their AMC rather than which is good or bad. And sometime(if executive have all AMC's) he ask investor to invest in those schemes which are more profitable ( in the sense of commission) to him rather than good for investors.

And i agree with Religare PSU scheme rather than SBI.. reasons are so many some of them are discussed by you.. But i am just asking question in the behalf on investors that how can they believe on someone blindly if they have not proper knowledge for same....
By Vipin Bhasin, Private Equity/Hedge Fund/VC-Manager, Indian Investment Co.  | 06 21 2010 17:14:43 +0000
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Mr. Srikanth, if someone have knowledge like you then why he invest their money in MF. He can invest directly in top PSUs which will diversified by companies(PSU) and sectors(PSU bank, PSU Oil sec, PSU power etc etc..... 


By Vipin Bhasin, Private Equity/Hedge Fund/VC-Manager, Indian Investment Co.  | 06 05 2010 19:05:32 +0000
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