MF schemes that invest in PSU Banks outperform on weekly basis

Markets are showing signs of fatigue even as investors in the US remained concerned on tax reforms amidst the crisis faced by US president Donald Trump.

Indian equities are on a roll with benchmark indices hitting record highs. Interestingly it is the same set of PSU banks pushing markets higher which are plagued with NPA problems touted to damage the economic growth prospects of India.

Mutual Fund schemes investing into PSU Banks are the ones that are seen outperforming the overall markets.

Reliance ETF PSU Bank BeES and Kotak PSU Bank ETF are the two leading mutual schemes that have delivered the best returns amongst various mutual fund schemes if we consider one week period.

Over previous one-week Reliance, ETF that tracks PSU Bank performance has generated 2.85 per cent returns. Over 1 month period the returns delivered are 8 percent and 1-year returns stood at an impressive 70 percent. This compares well with Sensex's returns of 1.36 per cent over past week, 4.23 per cent returns over 1 month,19 per cent returns over past 1 year.

State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India and Bank of India are the top holdings in the PSU Bank ETF.