PSU Equity Fund:
The country's second-largest mutual fund company ICICI Prudential has launched PSU Equity Fund.
The objective is to build wealth in the long run by investing primarily in equity and equity-related resources of government companies.
This NFO is open for investment and one can invest in it till next 6th of September.
According to market experts, this scheme can invest in stocks and sectors of the S&P BSE PSU Index.
ICICI Prudential PSU Equity Fund scheme can invest in all market caps like large, mid, and small caps.
Chintan Hariya, Head of Product and Strategy, Company, says that PSUs are present in various sectors offering huge investment opportunities.
PSUs that are attractively placed on a valuation basis mostly offer a better margin of safety.
Other factors that make government companies attractive include government ownership as well as a better margin of safety.
In most of the PSUs, the government's stake is above 60% and the valuations of these companies are also attractive.
Stock market experts believe that government companies give better dividend yields than the broader market.
The average dividend yield of the S&P BSE PSU Index over the last 17 years has been 2.6 while that of the S&P BSE Sensex has been 1.3.
In this volatile environment, investing in government companies can become a good option to increase your wealth.