Sundaram BNP Paribas – PSU Opportunities Fund

Sundaram BNP Paribas Mutual Fund has submitted an offer document with the Securities and Exchange Board of India (SEBI) to introduce Sundaram BNP Paribas Select Thematic Funds PSU Opportunities Fund – an open-ended equity scheme.

The investment objective of the scheme is to achieve capital growth by investing in equity and equity-related securities of public sector companies as well as in bonds and other fixed-income instruments issued by public sector entities.

We believe that this is a unique offering from Sundram BNP, encashing disinvestment and corporatisation of PSU entities by the Government which will lead to more efficient running and sustainable profit growth .

The face value of the proposed scheme is Rs 10 per unit. This scheme will offer two plans, regular and institutional, with sub-options dividend (dividend payout and dividend re-investment facilities) and growth.

One thought on “Sundaram BNP Paribas – PSU Opportunities Fund

  1. Valuation wise PSU Companies are available at a discount of approx 25% to Sensex, giving adequate comfort in terms of safety.
    Govt's disinvestment programme will be a good booster for PSU companies. The disinvestment will also improve the free float which will in turn improve their weightage in Nifty, forcing Funds across the World with India exposure to increase exposure to PSUs and giving their Stocks a boost.
    Lesser Govt intervention is helping manage the PSUs more professionally thus attacting more FII interest.
    All these measure are expected to re-rate PSUs on par with Private Companies in terms of PE, if not more thus giving Above Average Gains.

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