All 4 best performing mutual funds since last Holi are about PSU stocks. Did you miss the boom?

PSU theme based return charts have topped the return chart since last holi (March 8, 2023), data crunching by ETMutualFunds showed. There were 372 equity mutual funds during the said period.

Aditya Birla Sun Life PSU Equity Fund, the topper in the list, offered 76.93% since last holi. SBI PSU Fund gave 72.60% during the same period.



Invesco India PSU Equity Fund, the oldest scheme in the PSU category, offered 70.25% and ICICI Prudential PSU Equity Fund gave 69.88% in the same time period.

Also Read | 60% equity mutual funds fail to beat their benchmarks in FY24

These schemes are benchmarked against S&P BSE PSU - TRI. The benchmark gave 82.40% during the same period.

ETMutualFunds also compared the performance of these funds with their current benchmark. All these four schemes have failed to beat their respective benchmark.

The other schemes in the list gave returns ranging between 2.48% to 57.82% in the same time period.Franklin Asian Equity Fund offered the lowest return of 2.48%.

We considered all equity categories such as large cap, mid cap, large & mid cap, multi cap, small cap, ELSS, flexi cap, focused fund, value, contra, sectoral and thematic funds. We calculated returns starting from March 8, 2023 to March 22, 2024. We considered all regular and growth option schemes.

Also Read | These 7 mutual fund houses were sitting on over Rs 5,000 crore cash in February

Note, the above exercise is not a recommendation. The exercise was done to find out how equity mutual funds performed since last holi. One should not make investment or redemption decisions based on the above exercise.

One should always consider risk appetite, investment horizon, and goal before making any investment decision.

PSU funds are thematic funds that invest in stocks of public sector undertakings or PSUs. These companies are government-owned. So they are influenced by government policies on sectors they are operating.

You should invest in these schemes only if you have a long investment horizon or have intimate knowledge about the sector to time the entry and exit in these schemes. Remember, every sector or theme can go out of fashion depending on the economic conditions. You should not make hasty decisions in those phases.