Sundaram BNP Paribas MF launches PSU Opportunities Fund

MUMBAI: Sundaram BNP Paribas Mutual Fund on Wednesday announced the launch of Public Sector Undertakings (PSU) Opportunities Fund.

Sundaram BNP Paribas PSU Opportunities is an open-ended equity scheme. The benchmark for this fund is the CNX PSE Index. The issue of units is at Rs 10 each during the new fund offer period. The issue opened for subscription on November 25 and will close on December 23.

The investment objective of this fund would be to seek capital appreciation by investing in equity and equity-related instruments of PSU companies across size and sectors, Sundaram BNP Paribas PSU Opportunities Portfolio manager J Venkatesan told reporters in Mumbai.

"As an asset class, PSUs have a dominant share in four sectors--energy, financials, utilities and materials. We think that these four sectors would form a major portfolio allocation in our scheme," Venkatesan said.

The market cap of the PSU universe has risen from about Rs 90,000 crore to Rs 15,10,254 crore in this decade as PSU stocks outpaced the broad markets as well as private sector players.

Sundaram BNP Paribas Mutual Fund has assets under management (AUM) of Rs 14,000 crore, which include Rs 9,000 crore in equity and Rs 5,000 crore in debt schemes.