Fund Of Fortnight

Every fortnight, we recommend one open-ended equity diversified fund that has the best potential of returns for the next one year considering its constituents remain the same.[EasyDNNnews:PaidContentStart]

Reason for recommendation
In an era defined by geopolitical tensions and market volatility, investors are looking for safe, yet growthoriented, investment options. India's Public Sector Undertakings (PSUs) offer a surprising opportunity, acting as a direct play on the country's expanding infrastructure and the Atmanirbhar Bharat mission. The Invesco India PSU Equity Fund, our choice for this issue of MF Select, has demonstrated impressive resilience, outperforming its category in recent times. Over the past year, the fund has declined by 5.32 per cent, which is significantly better than the category average fall of 9.24 per cent.

The fund's performance over longer periods also reflects its strong growth potential. It has delivered a 33.27 per cent return over the past three years, surpassing the category average of 32.1 per cent. The 7-year and 10-year returns are 22.85 per cent and 18.68 per cent, respectively, both outperforming their category counterparts of 21 per cent and 16.81 per cent.

In terms of sector allocation, the fund is heavily weighted in the Energy sector, comprising 43.6 per cent of the portfolio, reflecting its focus on India’s power infrastructure. Capital Goods follow at 25.86 per cent, highlighting its emphasis on infrastructure growth. Financials, particularly state-owned Banks, make up 19.1 per cent, emphasising their critical role in India's economic development.

The top five holdings include some of the best-managed PSUs in the country, such as Bharat Electronics (8.76 per cent), State Bank of India (8.54 per cent), and NTPC Ltd. (7.54 per cent). These companies are vital to India’s infrastructure, energy, and Defence sectors, aligning the fund with the nation’s long-term growth drivers.

For investors seeking a balance of stability and growth within India’s emerging economy, this fund presents a promising choice.

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