Lets do a Review and Analysis and get into finer details of the New Fund Offer from Religare Fund House “Religare PSU Equity fund” and try to see if there is anything unique about this fund for us. Religare Mutual Fund has launched a PSU (Public Sector Undertakings) fund which will invest in Equity and Equity Related companies in few core sectors where the Central / State Government(s) has majority of it holding and the fund could benefit from divestment reforms taken by government in the near future.
The fund will invest 65 per cent of its assets in companies in the BSE PSU index and the remaining 35 per cent in other PSU companies.
Religare PSU Equity New Fund Offer opened on Tuesday September 29th 2009 and will close on October 28 2009. The fund offers both growth and dividend options. Entry load would be as per New SEBI Guidelines. Minimum application amount for lump-sum investment is Rs 5,000. For SIP investments, the minimum application amount is Rs 1,000. The minimum tenure for SIP enrolment is 6 months under the monthly option and four months under the quarterly option.
I do not see any difference when it comes to investing in PSU or any other public companies. Government has over time clearly stated that PSU’s would remain PSU’s and government would at least hold 51% of stake in those companies, so there is nothing much that is going to improve in those PSU’s but when it comes to technicals and sentiments I guess PSU companies can benefit and so PSU funds but instead of investing in Religare PSU fund I would prefer to invest in SBI PSU NFO ( coming soon ) because of SBI Fund House’s reputation and my personal preference.