Aditya Birla Sun Life Mutual Fund (ABSLMF) has launched Aditya Birla Sun Life PSU Equity Fund, an open-ended equity scheme which will invest predominantly in PSU companies where the government has a majority shareholder of at least 51%. The fund is diversified in nature and focuses on long-term growth and appreciation of capital.
In a press release, A. Balasubramanian, MD & CEO, Aditya Birla Sun Life MF, “PSUs typically dominate sectors that are core to the economy and its growth such as utilities, oil & gas, metals & mining, infrastructure, defence, engineering, banking etc. Often, they have a monopolistic position or large scale, with strong return on equity (RoE) and steady cash flow from operations, which allow them to give out high dividends. Many of these have characteristics of bluechips in their respective industries”.
“Most PSUs are quality companies with strong balance sheets and a potential to get re-rated over a period of time. The government’s increasing focus on strategic divestment plans will also help unlock value for some of the PSUs,” said Balasubramanian.
