Hey, fellow investor! Ready to deep-dive into the exciting realm of PSU sectoral funds? You’re in the right place if you’re torn between the SBI PSU Fund vs Aditya Birla Sun Life PSU Equity Fund! Get set for a deep dive into a side-by-side comparison that’ll steer you through the twists and turns, ensuring you’re equipped to make a savvy choice. Let’s unravel the mysteries and set you on the path to informed investing!
Understanding Investment Style
SBI PSU Fund:
This fund follows a blend of investment styles, combining growth and value investing strategies. It aims to balance capital appreciation and stability by investing in a mix of growth-oriented and undervalued PSU stocks.
Aditya Birla Sun Life PSU Equity Fund
On the other hand, this fund leans more towards a growth-oriented approach and incorporates blend and value investing elements. It primarily focuses on companies with high growth potential within the PSU sector while keeping an eye on undervalued stocks.
Indices Performance Comparison
Let’s take a peek at how these funds have performed relative to key indices over the past 1 and 5 years:
| Indices | 1 Year (%) | 5 Years (%) |
| NIFTYPSUBANK | 96.11 | 121.75 |
| NIFTYPSE | 111.43 | 168.77 |
Data Analysis:
Both funds have closely mirrored the performance of the NIFTYPSUBANK and NIFTYPSE indices, with slight variations. Aditya Birla Sun Life PSU Equity Fund has exhibited marginally higher returns than the indices, indicating its ability to outperform the broader market.
Trailing Returns Analysis
Now, let’s delve into the trailing returns of both funds as of 28th March 2024:
Trailing Returns (NAV as of 28th March 2024)
| Period Invested for | SBI PSU Fund | Aditya Birla Sun Life PSU Equity Fund |
| 1 Year | 98.44% | 99.73% |
| 2 Year | 46.85% | 47.25% |
| 3 Year | 42.89% | 45.50% |
Data Analysis:
Aditya Birla Sun Life PSU Equity Fund has consistently outperformed SBI PSU Fund across all periods analyzed. The outperformance ranges from 0.40% to 2.61%, indicating its superior ability to generate returns over various investment horizons.
Key Takeaways
- Investment Style: While SBI PSU Fund adopts a blended approach, Aditya Birla Sun Life PSU Equity Fund leans towards growth and incorporates blend and value strategies.
- Indices Performance: Both funds closely track vital indices. Aditya Birla Sun Life PSU Equity Fund exhibits slightly higher returns, indicating its ability to outperform the market.
- Trailing Returns: Aditya Birla Sun Life PSU Equity Fund has consistently outperformed SBI PSU Fund across all analyzed periods, showcasing its superior return-generating potential.
Lumpsum Investment Value Analysis
Let’s kick things off by examining the lumpsum investment values of both funds as of 28th March 2024:
Lumpsum Investment Value (NAV as of 28th March 2024)
| Period Invested for | SBI PSU Fund | Aditya Birla Sun Life PSU Equity Fund |
| 1 Year | 19993.5 | 20124.9 |
| 2 Year | 21610.2 | 21727.9 |
| 3 Year | 29202.8 | 30834.8 |
Data Analysis:
Aditya Birla Sun Life PSU Equity Fund has consistently maintained a slightly higher lumpsum investment value than SBI PSU Fund across all analyzed periods. The difference in value ranges from ₹131.4 to ₹1,632, indicating its superior performance in terms of lumpsum returns.
SIP Returns Analysis
Now, let’s shift our focus to the SIP returns of both funds as of 28th March 2024:
SIP Returns (NAV as of 28th March 2024)
| Period Invested for | SBI PSU Fund | Aditya Birla Sun Life PSU Equity Fund |
| 1 Year | 108.11% | 108.88% |
| 2 Year | 69.48% | 70.98% |
| 3 Year | 51.88% | 53.80% |
Data Analysis
Aditya Birla Sun Life PSU Equity Fund has consistently outperformed SBI PSU Fund regarding SIP returns across all investment periods. The outperformance ranges from 0.77% to 1.92%, indicating its ability to generate higher returns through systematic investment planning.
Key Takeaways
- Lumpsum Investment Value: Aditya Birla Sun Life PSU Equity Fund maintains a slightly higher lumpsum investment value than SBI PSU Fund, showcasing its potential for greater returns over a one-time investment.
- SIP Returns: Aditya Birla Sun Life PSU Equity Fund emerges as the frontrunner in SIP returns, consistently outperforming SBI PSU Fund across all investment periods.
SIP Investment Value Analysis
Let’s dive straight into the numbers and analyze the SIP investment values of both funds as of 28th March 2024:
SIP Investment Value (NAV as of 28th March 2024)
| Period Invested for | Investments | SBI PSU Fund | Aditya Birla Sun Life PSU Equity Fund |
| 1 Year | 12000 | 18261.36 | 18301.98 |
| 2 Year | 24000 | 43543.35 | 44010.77 |
| 3 Year | 36000 | 73151.15 | 74870.52 |
Data Analysis:
Aditya Birla Sun Life PSU Equity Fund has consistently maintained a slightly higher SIP investment value than SBI PSU Fund across all investment periods. The difference in value ranges from ₹40.62 to ₹1,719.37, indicating its superior performance in terms of SIP returns.
CAGR (Compound Annual Growth Rate) Analysis
Now, let’s crunch some numbers and evaluate the Compound Annual Growth Rate (CAGR) of both funds:
CAGR
| Category | 1 Year | 3 Year |
| SBI PSU Fund | 89.07% | 40.26% |
| Aditya Birla Sun Life PSU Equity Fund | 94.87% | 41.63% |
Data Analysis:
Aditya Birla Sun Life PSU Equity Fund has showcased a higher CAGR than SBI PSU Fund across the 1-year- and 3-year investment periods. The outperformance ranges from 1.37% to 5.80%, highlighting its ability to deliver superior growth and returns over time.
Key Takeaways
- SIP Investment Value: Aditya Birla Sun Life PSU Equity Fund maintains a slight edge over SBI PSU Fund in terms of SIP investment value across all investment durations, indicating its potential for higher returns through systematic investment planning.
- CAGR Performance: Aditya Birla Sun Life PSU Equity Fund emerges as the frontrunner with higher CAGR figures, outperforming SBI PSU Fund and showcasing its ability to generate consistent growth and returns over time.
Rolling Returns Analysis
Rolling Returns
| Category | 1 Year | 3 Year |
| SBI PSU Fund | 14.59% | 9.30% |
| Aditya Birla Sun Life PSU Equity Fund | 41.96% | 37.15% |
Let’s start by unpacking the rolling returns of both funds across different time frames:
Data Analysis:
Aditya Birla Sun Life PSU Equity Fund has showcased remarkable performance in rolling returns, significantly outperforming SBI PSU Fund across the 1-year and 3-year periods. The outperformance margins are substantial, standing at 27.37% and 27.85%, respectively.
Annualized/Calendar Year Returns Analysis
Now, let’s shift our focus to the annualized or calendar year returns of both funds as of 28th March 2024:
Annualised/Calendar Year Returns (NAV as of 28th March 2024)
| Period | SBI PSU Fund | Aditya Birla Sun Life PSU Equity Fund |
| 2023 | 55.74% | 61.50% |
| 2022 | 30.41% | 32.52% |
| 2021 | 31.64% | 37.49% |
Outperformance Analysis
| SBI PSU Fund | Aditya Birla Sun Life PSU Equity Fund | |
| No. of times Outperformance | 0 | 3 |
Data Analysis:
Aditya Birla Sun Life PSU Equity Fund has consistently outperformed SBI PSU Fund in annualized returns, securing the lead for three consecutive years (2021, 2022, and 2023). This streak of outperformance underscores the fund’s ability to deliver superior returns over multiple calendar years.
Key Takeaways
- Rolling Returns: Aditya Birla Sun Life PSU Equity Fund emerges as the clear winner, showcasing a substantial lead over SBI PSU Fund across both short-term and long-term periods.
- Annualized/Calendar Year Returns: Aditya Birla Sun Life PSU Equity Fund maintains its dominance with outperformance in three consecutive years, demonstrating consistent growth and superior performance over time.
Quarterly Results Analysis
Let’s first take a look at the quarterly results of both funds:
Quarterly Results (NAV as of 28th March 2024)
| Period | SBI PSU Fund | Aditya Birla Sun Life PSU Equity Fund |
| Q1 2024 | 13.68% | 14.17% |
| Q4 2023 | 20.68% | 24.91% |
| Q3 2023 | 23.38% | 20.95% |
| Q2 2023 | 10.73% | 11.61% |
| Q1 2023 | -5.54% | -4.22% |
| Q4 2022 | 15.28% | 15.35% |
| Q3 2022 | 15.20% | 13.97% |
| Q2 2022 | -9.95% | -10.67% |
| Q1 2022 | 6.83% | 9.08% |
| Q4 2021 | -3.50% | -3.58% |
| Q3 2021 | 5.17% | 8.31% |
| Q2 2021 | 14.15% | 14.22% |
| Q1 2021 | 12.09% | 13.35% |
| SBI PSU Fund | Aditya Birla Sun Life PSU Equity Fund | |
| Outperformance | 4 | 9 |
Data Analysis:
Aditya Birla Sun Life PSU Equity Fund has consistently outperformed SBI PSU Fund in quarterly returns, recording higher returns in 9 out of 13 quarters. However, both funds have showcased resilience and delivered positive returns across various quarters, albeit with fluctuations.
Risk Analysis
Maximum Drawdown Analysis
Let’s kick things off by examining the maximum drawdowns of both funds over 3 years:
Maximum Drawdown
| Period | SBI PSU Fund | Aditya Birla Sun Life PSU Equity Fund |
| 3-Year | -10.9% | -9.73% |
Data Analysis:
Both funds have experienced damaging maximum drawdowns over the 3 years, with Aditya Birla Sun Life PSU Equity Fund recording a slightly higher drawdown of -10.9% compared to SBI PSU Fund’s -9.73%.
Key Takeaways
- Risk Assessment: Maximum drawdown is a crucial metric for assessing the downside risk associated with an investment. In this case, both funds have demonstrated a decline in value from their peak levels over the 3 years, with Aditya Birla Sun Life PSU Equity Fund experiencing a slightly larger drawdown.
- Risk Management: While drawdowns are inevitable in the investment journey, it’s essential to consider the fund’s risk management strategies and ability to recover from downturns. Investors should evaluate fund diversification, portfolio allocation, and risk-adjusted returns to mitigate downside risk and enhance long-term performance.
Mean Return, Sortino Ratio, and Treynor’s Ratio
Now, let’s assess the risk associated with both funds using three key metrics: Mean Return, Sortino Ratio, and Treynor’s Ratio:
| Category | Mean Return (%) | Sortino (%) | Treynor’s Ratio (%) |
| SBI PSU Fund | 36.25 | 2.84 | 0.27 |
| Aditya Birla Sun Life PSU Equity Fund | 38.6 | 3.54 | 0.31 |
Data Analysis:
Aditya Birla Sun Life PSU Equity Fund exhibits slightly higher mean returns, Sortino Ratio, and Treynor’s Ratio than SBI PSU Fund, indicating better risk-adjusted performance. A higher Sortino Ratio suggests that the fund generates higher returns relative to the downside risk. In contrast, a higher Treynor’s Ratio indicates better risk-adjusted returns per unit of systematic risk.
Key Takeaways
- Quarterly Performance: Aditya Birla Sun Life PSU Equity Fund has demonstrated superior quarterly returns compared to SBI PSU Fund, showcasing its ability to capitalize on market opportunities and deliver consistent growth.
- Risk Analysis: While both funds have shown resilience, Aditya Birla Sun Life PSU Equity Fund edges ahead with better risk-adjusted performance, as evidenced by higher mean returns, Sortino Ratio, and Treynor’s Ratio.
Standard Deviation and Sharpe Ratio
Let’s kick things off by examining the risk metrics of both funds:
Standard Deviation (3-Year)
| Category | Std Dev (%) 3Y |
| SBI PSU Fund | 20.35 |
| Aditya Birla Sun Life PSU Equity Fund | 19.6 |
Sharpe Ratio (3-Year)
| Category | Sharpe (%) 3Y |
| SBI PSU Fund | 1.53 |
| Aditya Birla Sun Life PSU Equity Fund | 1.71 |
Data Analysis
Aditya Birla Sun Life PSU Equity Fund exhibits a slightly lower standard deviation (19.6%) than SBI PSU Fund (20.35%), indicating slightly lower volatility in its returns over the 3 years. Additionally, Aditya Birla Sun Life PSU Equity Fund boasts a higher Sharpe ratio (1.71) than SBI PSU Fund (1.53), suggesting better risk-adjusted returns per unit of risk.
Alpha (Against Benchmark – Nifty 50 index)
Now, let’s move our focus to the performance metrics of both funds against the Nifty 50 index:
Alpha (Compared to Nifty 50)
| Category | Alpha (%) 1Y | Alpha (%) 2Y | Alpha (%) 3Y |
| SBI PSU Fund | 9.65 | 17.87 | 23.81 |
| Aditya Birla Sun Life PSU Equity Fund | 15.78 | 20.97 | 27.81 |
Data Analysis
Aditya Birla Sun Life PSU Equity Fund consistently outperforms SBI PSU Fund in alpha across all timeframes (1-year, 2-year, and 3-year), indicating its ability to generate excess returns above the benchmark Nifty 50 index. This highlights the fund’s superior performance in capturing market opportunities and delivering alpha to investors.
Key Takeaways
- Risk Metrics: While both funds exhibit moderate levels of risk, Aditya Birla Sun Life PSU Equity Fund demonstrates slightly lower volatility and better risk-adjusted returns than SBI PSU Fund, as evidenced by its lower standard deviation and higher Sharpe ratio.
- Performance Metrics: Aditya Birla Sun Life PSU Equity Fund emerges as the frontrunner in performance, consistently delivering higher alpha across various timeframes than SBI PSU Fund. This underscores the fund’s ability to generate superior returns and add value to investors’ portfolios.
Alpha Against Benchmark – S&P BSE PSU – TRI
Let’s start by examining the alpha generated by both funds against the S&P BSE PSU – TRI index over 3 years:
| Metric | SBI PSU Fund | Aditya Birla Sun Life PSU Equity Fund |
| Alpha (%) 3Y | -1.93 | 0.81 |
| Higher Better | Higher Better | Higher Better |
Data Analysis
Aditya Birla Sun Life PSU Equity Fund demonstrates positive alpha (0.81%) over the 3 years, indicating its ability to outperform the benchmark index, whereas SBI PSU Fund records a negative alpha (-1.93%), suggesting underperformance relative to the benchmark.
Next, let’s explore the ratings assigned to both funds by renowned rating agencies:
Key Takeaways
- Performance Insights: Aditya Birla Sun Life PSU Equity Fund has emerged as the frontrunner in alpha generation over the 3 years, showcasing its potential to deliver superior returns compared to the benchmark index. On the other hand, the SBI PSU Fund lags behind with a negative alpha, signalling underperformance.
- Rating Overview: While SBI PSU Fund boasts a respectable CRISIL rank of 2 and a rating of 2 from Value Research, specific ratings for Aditya Birla Sun Life PSU Equity Fund from CRISIL are unavailable. However, investors should consider multiple factors, including ratings, when making investment decisions.
Portfolio Analysis
Portfolio Overlapping Comparison
Let’s kick things off by comparing the extent of portfolio overlap between the SBI PSU Fund and the Aditya Birla Sun Life PSU Equity Fund:
Portfolio Overlapping Comparison
| SBI PSU Fund | Aditya Birla Sun Life PSU Equity Fund | |
| Portfolio Overlap Total % | 75.00 | 60.60 |
Data Analysis
The portfolio overlap between the two funds is significant, with SBI PSU Fund showing a higher overlap percentage of 75.00% compared to Aditya Birla Sun Life PSU Equity Fund, which has a slightly lower overlap percentage of 60.60%. This indicates a considerable similarity in the stocks held by both funds.
Portfolio Comparison: Asset Allocation
Now, let’s delve deeper into the composition of their portfolios across different asset classes:
| Category | SBI PSU Fund | Aditya Birla Sun Life PSU Equity Fund |
| Equity | 93.30% | 90.96% |
| Debt | ||
| Cash & Cash Equivalents | 6.70% | 9.04% |
| Real Estate, Gold, Others |
Data Analysis
Both funds primarily focus on equity investments, with SBI PSU Fund allocating 93.30% of its portfolio to equities and Aditya Birla Sun Life PSU Equity Fund allocating 90.96%. However, Aditya Birla Sun Life PSU Equity Fund holds a slightly higher proportion of cash and cash equivalents (9.04%) than SBI PSU Fund (6.70%).
Key Takeaways
- Portfolio Overlapping: While both funds exhibit significant portfolio overlap, SBI PSU Fund shows more overlap than Aditya Birla Sun Life PSU Equity Fund. This suggests that investors might encounter redundancy in their holdings if they invest in both funds simultaneously.
- Asset Allocation: Both funds predominantly invest in equities, reflecting their focus on generating returns from the stock market. However, Aditya Birla Sun Life PSU Equity Fund holds a slightly higher proportion of cash and cash equivalents, which may provide some cushion during volatile market conditions.
Market Cap Allocation
Let’s kick things off by examining how these funds allocate their investments across different market capitalizations:
| SBI PSU Fund | Aditya Birla Sun Life PSU Equity Fund | |
| No of Stocks | 23 | 45 |
| Large Cap | 39.23% | 52.98% |
| Mid Cap | 25.88% | 18.51% |
| Small Cap | 17.91% | 9.70% |
| Foreign Equity | 0.00% | 0.00% |
Data Analysis
- Number of Stocks: SBI PSU Fund holds 23 stocks in its portfolio, whereas Aditya Birla Sun Life PSU Equity Fund boasts a more diversified portfolio with 45 stocks.
- Large Cap Allocation: Aditya Birla Sun Life PSU Equity Fund has a higher allocation to large-cap stocks, standing at 52.98%, compared to SBI PSU Fund’s allocation of 39.23%.
- Mid-Cap and Small Cap Allocation: SBI PSU Fund allocates a higher percentage of its portfolio to mid-cap (25.88%) and small-cap (17.91%) stocks compared to Aditya Birla Sun Life PSU Equity Fund, which allocates 18.51% to mid-caps and 9.70% to small caps.
- Foreign Equity: Both funds have no allocation to foreign equities, indicating a focus on domestic markets.
Sector Allocation
Now, let’s explore how these funds distribute their investments across various sectors:
| Sector | SBI PSU Fund | Aditya Birla Sun Life PSU Equity Fund |
| Financial | 34.35% | 26.08% |
| Energy | 28.56% | 35.05% |
| Metals & Mining | 12.24% | 4.20% |
| Capital Goods | 8.32% | 9.48% |
| Construction | 4.12% | 1.67% |
| Materials | 3.10% | 6.29% |
| Insurance | 2.61% | 3.56% |
| Services | NA | 3.84% |
| Chemicals | NA | 0.53% |
| Consumer Staples | NA | 0.26% |
Data Analysis:
- Financial Sector: SBI PSU Fund allocates a higher percentage of its portfolio to the financial sector (34.35%) than Aditya Birla Sun Life PSU Equity Fund (26.08%).
- Energy Sector: Aditya Birla Sun Life PSU Equity Fund has a higher allocation to the energy sector (35.05%) than the SBI PSU Fund (28.56%).
- Metals & Mining: SBI PSU Fund allocates a significant portion of its portfolio (12.24%) to metals & mining compared to Aditya Birla Sun Life PSU Equity Fund (4.20%).
- Services, Chemicals, Consumer Staples: Aditya Birla Sun Life PSU Equity Fund has allocations to sectors like services, chemicals, and consumer staples, which are not present in the SBI PSU Fund’s portfolio.
Key Takeaways
- Diversification: Aditya Birla Sun Life PSU Equity Fund offers a more diversified portfolio with more stocks than SBI PSU Fund.
- Significant Cap Exposure: Investors seeking exposure to large-cap stocks may find Aditya Birla Sun Life PSU Equity Fund more suitable due to its higher allocation in this segment.
- Sectoral Exposure: SBI PSU Fund has a heavier tilt towards the financial and, metals & mining sectors, while Aditya Birla Sun Life PSU Equity Fund shows greater exposure to energy and services sectors.
Overview of Fund Managers
| Fund Name | Fund Manager | No. Of Months |
| SBI PSU Fund | Richard D’souza | 116 |
| Aditya Birla Sun Life PSU Equity Fund | Dhaval Gala | 19 |
| Dhaval Joshi | 17 |
SBI PSU Fund: Richard D’souza
- Months of Tenure: 116 months
- Joining Date: 01-Aug-14
Aditya Birla Sun Life PSU Equity Fund:
- Dhaval Gala: 19 months (Joining Date: 22-Sep-22)
- Dhaval Joshi: 17 months (Joining Date: 21-Nov-22)
Embarking on the journey of fund management, Richard D’souza has led the SBI PSU Fund for an impressive tenure of 116 months since August 2014. Meanwhile, the dynamic duo of Dhaval Gala and Dhaval Joshi spearheads the Aditya Birla Sun Life PSU Equity Fund, bringing fresh perspectives and expertise since September and November 2022, respectively.
Key Takeaways
- Experienced Leadership: Richard D’souza’s extensive tenure at the helm of SBI PSU Fund brings stability and seasoned expertise.
- Dynamic Management: The duo of Dhaval Gala and Dhaval Joshi injects fresh perspectives and agility into the management of Aditya Birla Sun Life PSU Equity Fund.
General Fund Details
| Fund Name | NAV | AUM (in Cr.) | Expense Ratio (%) | Turnover | Benchmark |
| SBI PSU Fund | 32.53 | 1875 | 0.97 | 45.00% | S&P BSE PSU – TRI |
| Aditya Birla Sun Life PSU Equity Fund | 35.45 | 3329 | 0.53 | 62% | S&P BSE PSU TRI |
NAV (Net Asset Value): Represents the per-unit value of the mutual fund. AUM (Assets Under Management): Total value of assets the fund manages. Expense Ratio: Percentage of a fund’s total assets for administrative and operational expenses. Turnover: Rate at which holdings within the portfolio are bought and sold. Benchmark: Reference index against which a fund’s performance is evaluated.
Minimum Investment Amount
| Fund Name | SIP | Lumpsum |
| SBI PSU Fund | ₹ 500 | ₹ 5,000 |
| Aditya Birla Sun Life PSU Equity Fund | ₹ 100 | ₹ 500 |
For investors looking to start their journey with these funds, here are the minimum investment amounts required for Systematic Investment Plans (SIPs) and lump sum investments. SBI PSU Fund mandates a minimum SIP investment of ₹500 and a lump sum investment of ₹5,000. Meanwhile, Aditya Birla Sun Life PSU Equity Fund offers a lower entry barrier with a minimum SIP investment of just ₹100 and a lump sum investment of ₹500, making it accessible to a broader investor base.
Key Takeaways
- Fund Performance: While SBI PSU Fund boasts a lower expense ratio, Aditya Birla Sun Life PSU Equity Fund demonstrates higher turnover, potentially indicating active management strategies.
- Accessibility: Aditya Birla Sun Life PSU Equity Fund offers a lower minimum investment requirement, making it more accessible to retail investors.
- Benchmark Comparison: Both funds are benchmarked against prominent indices, reflecting their focus on delivering returns aligned with specific market segments.
Investment Strategy:
In the last part of this blog, let’s find out what strategy you should follow if you plan to invest in the PSU sector. Suppose you want to earn better returns from them, as shown in this chart.
In that case, we can see the S&P BSE PSU Index returns from 2001 to 2022. Here, we can see a significant increase in the PSE Index before every election, whether in 2004, 2009, or 2019. In the following chart, we can see that the PSE Index performed quite well between 2001 and 2011 and outperformed the returns of the Nifty 50. Still, from 2011 to 2021, the performance of this index remained quite down, but after 2021, the PSE Index has shown a sharp recovery. If the government’s policies continue to be the same, then this index could have further momentum.
As we can see, there has been a significant rally in the last 2 years. In this case, it will be prudent for investors who want to invest in the PSU sector to invest in SIP mode and wait for a significant decline where you can invest a lump sum.
If you follow this strategy for a long time, you can also earn good returns in this sector in the long term. And with this, the analysis concludes. I hope this blog will help you choose the better fund, especially from these two PSU funds.
Conclusion:
In conclusion, the comparative analysis between SBI PSU Fund and Aditya Birla Sun Life PSU Equity Fund reveals that Aditya Birla Sun Life PSU Equity Fund outperforms SBI PSU Fund across various parameters. Aditya Birla Sun Life PSU Equity Fund demonstrates superior performance in investment style, indices performance, trailing returns, lumpsum investment value, SIP returns, CAGR, rolling returns, annualized returns, risk analysis, performance metrics, portfolio comparison, and fund overview.
With higher returns, lower expense ratio, experienced fund managers, and lower minimum investment requirements, Aditya Birla Sun Life PSU Equity Fund emerges as the better choice for investors.
However, the investment strategy for the PSU sector suggests utilizing SIP mode to capitalize on market fluctuations and waiting for significant declines to make lump sum investments, potentially leading to substantial returns over the long term. Therefore, investors seeking exposure to the PSU sector should consider incorporating Aditya Birla Sun Life PSU Equity Fund into their investment portfolios for optimized returns and long-term growth.
We hope you found this guide on mutual funds helpful.
If you have any mutual fund-related queries, feel free to comment below—we’re here to help! S.K. Singh, a registered professional with the Association of Mutual Funds in India (AMFI), will answer your queries and holds the ARN-251149.
Invest wisely!
FAQs – SBI PSU Fund vs Aditya Birla Sun Life PSU Equity Fund
1. What is the investment style of SBI PSU Fund compared to Aditya Birla Sun Life PSU Equity Fund?
SBI PSU Fund follows a blend of growth and value investing strategies to balance capital appreciation and stability. Aditya Birla Sun Life PSU Equity Fund leans towards a growth-oriented approach, focusing on companies with high growth potential within the PSU sector.
2. How do the funds perform relative to key indices?
Both funds closely track indices such as NIFTYPSUBANK and NIFTYPSE. Aditya Birla Sun Life PSU Equity Fund has exhibited marginally higher returns than the indices, indicating its ability to outperform the broader market.
3. Which fund consistently outperforms across various investment periods?
Aditya Birla Sun Life PSU Equity Fund consistently outperforms SBI PSU Fund across all analyzed periods, showcasing its superior return-generating potential.
4. What are the critical differences in lumpsum investment values between the two funds?
ABSL PSU Equity Fund has consistently maintained a slightly higher lumpsum investment value than SBI PSU Fund across all analyzed periods, indicating its superior performance in terms of lumpsum returns.
5. Which fund emerges as the frontrunner in SIP returns?
Aditya Birla Sun Life PSU Equity Fund consistently outperforms SBI PSU Fund regarding SIP returns across all investment periods, indicating its ability to generate higher returns through systematic investment planning.
6. How do the funds differ in terms of risk analysis?
Aditya Birla Sun Life PSU Equity Fund exhibits slightly lower volatility and better risk-adjusted returns than SBI PSU Fund, as evidenced by its lower standard deviation and higher Sharpe ratio.
7. What is the minimum investment requirement for both funds?
The SBI PSU Fund requires a minimum investment of ₹100 for SIP investments. At the same time, Aditya Birla Sun Life PSU Equity Fund allows a minimum investment of just ₹500, making it more accessible to a broader range of investors.
8. What is the recommended investment strategy for investing in the PSU sector?
The recommended strategy suggests utilizing SIP mode to capitalize on market fluctuations and waiting for significant declines to make lump sum investments, potentially leading to substantial returns over the long term.
Disclaimer:
The information provided in this article is solely the author/advertisers’ opinion and not investment advice – it is provided for educational purposes only. Using this, you agree that the information does not constitute any investment or financial instructions by Ace Equity Research/Mutual Fund Focus/IPO First and the team. Anyone wishing to invest should seek their own independent financial or professional advice. Conduct your research with registered financial advisors before making any investment decisions. Ace Equity Research/ Mutual Fund Focus / IPO First and the team are not accountable for the investment views provided in the article.
Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully.
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