What are the top performing Thematic-PSU funds?

Based on 1-year returns, the top performing Thematic-PSU funds are Aditya Birla Sun Life PSU Equity Fund - Direct Plan with 9.76% return, SBI PSU Fund - Direct Plan with 9.37% return, and Kotak BSE PSU Index Fund - Direct Plan with 7.61% return. The category average 1-year return is 2.42%.

Which Thematic-PSU funds have given the best returns over 3 years?

Over a 3-year period, the best performing Thematic-PSU funds are Aditya Birla Sun Life PSU Equity Fund - Direct Plan with a 30.84% CAGR, SBI PSU Fund - Direct Plan with 27.99% CAGR, and Kotak BSE PSU Index Fund - Direct Plan with 27.29% CAGR. The category average 3-year return stands at 28.19% CAGR.

Which Thematic-PSU funds have given the best returns over 5 years?

Over a 5-year period, the top Thematic-PSU funds are Aditya Birla Sun Life PSU Equity Fund - Direct Plan with a 24.97% CAGR, SBI PSU Fund - Direct Plan with 24.88% CAGR, and Kotak BSE PSU Index Fund - Direct Plan with 23.57% CAGR. The category average 5-year return is 24.47% CAGR.

Which are the best Thematic-PSU funds for SIP investment?

Based on average 5-year rolling returns, the best Thematic-PSU funds for SIP are Invesco India PSU Equity Fund - Direct Plan with 5-year average rolling return of 17.30%, SBI PSU Fund - Direct Plan with 12.13%, and -- with 0.00%. You can start a SIP in Thematic-PSU funds with as little as ₹100 per month.

What are the largest Thematic-PSU mutual funds by assets?

The largest Thematic-PSU funds by Assets Under Management (AUM) are SBI PSU Fund - Direct Plan with ₹ 6,669.45 crore, Aditya Birla Sun Life PSU Equity Fund - Direct Plan with ₹ 6,043.99 crore, and ICICI Prudential PSU Equity Fund - Direct Plan with ₹ 1,975.03 crore. Together, there are 8 Thematic-PSU funds available in India.

What is the minimum amount to invest in Thematic-PSU funds?

You can start investing in Thematic-PSU funds with a minimum SIP of ₹100 per month or a minimum lumpsum of ₹100. The minimum investment varies across fund houses — some funds allow even lower entry points.

How are Thematic-PSU fund returns taxed?

Gains from Thematic-PSU funds held for less than 12 months are taxed at 20% (Short-Term Capital Gains). Gains on units held for 12 months or more are taxed at 12.5% (Long-Term Capital Gains), with ₹1.25 lakh per year being exempt per financial year. Dividends (IDCW) are taxed at your applicable income tax slab rate.

Which Thematic-PSU funds have the lowest expense ratio?

Among Thematic-PSU funds, Groww Nifty PSE ETF FOF - Direct Plan has the lowest expense ratio at 0.24% (Direct Plan), followed by Kotak BSE PSU Index Fund - Direct Plan at 0.39%. Lower expense ratios directly improve your net returns over the long term.

How many Thematic-PSU mutual funds are available in India?

There are currently 8 Thematic-PSU mutual funds available in India across different fund houses. You can compare all 8 funds on Sharpely based on returns, risk, AUM, and expense ratio to find the one that suits your investment goals.

mutual funds category

Thematic Psu

Thematic-PSU Funds

Thematic equity funds invest in stocks linked to a theme. These funds have a broader scope than sectoral funds, as they invest in stocks from various sectors that are linked to a particular theme. PSU thematic funds invest in PSU stocks. As per the SEBI guidelines, a minimum of 80% of the funds will be invested in PSU stocks.

Total Schemes

No. of schemes

Total AUM

₹ 0.17Lakh Cr

As on latest

Category Return (5Y)

24.47 %

CAGR

Benchmark

12.29%

NIFTY 500 TRI

Category Returns (%)

Period	1M	6M	1Y	3Y CAGR	5Y CAGR	10Y CAGR	YTD
Thematic-PSU	-4.18 %	0.58 %	2.42 %	28.19 %	24.47 %	17.53 %	-0.56 %
Benchmark	-0.98 %	-5.95 %	-0.83 %	13.55 %	12.29 %	13.90 %	-5.75 %

Top Thematic-PSU Funds (by AUM)

Fund Name	AUM (₹ Cr)	1Y Return	3Y CAGR	5Y CAGR	Expense Ratio
SBI PSU Fund - Direct PlanNAV: ₹38.36	6,669.45 Cr	9.37%	30.84%	24.88%	0.85%
Aditya Birla Sun Life PSU Equity Fund - Direct PlanNAV: ₹39.49	6,043.99 Cr	9.76%	27.99%	24.97%	0.66%
ICICI Prudential PSU Equity Fund - Direct PlanNAV: ₹22.78	1,975.03 Cr	6.56%	26.64%	-	0.80%
Invesco India PSU Equity Fund - Direct PlanNAV: ₹77.35	1,520.15 Cr	1.73%	27.29%	23.57%	0.92%
Quant PSU Fund - Direct PlanNAV: ₹11.04	501.75 Cr	4.32%	-	-	1.10%
Kotak BSE PSU Index Fund - Direct PlanNAV: ₹9.45	91.37 Cr	7.61%	-	-	0.39%
Groww Nifty India Railways PSU Index Fund - Direct PlanNAV: ₹8.09	55.18 Cr	-22.43%	-	-	0.71%
Groww Nifty PSE ETF FOF - Direct PlanNAV: ₹9.84	12.08 Cr	-	-	-	0.24%

About Thematic-PSU Funds

What is it?

Objective

The objective of these funds is to generate maximum returns by investing in the stocks of PSUs.

Suitability and opinion

We believe that concentration risk is high in any thematic funds and the impact of the market cycle can be severe in this category. Though these funds may have higher diversification compared to sectoral funds, this category is suitable for informed investors who are comfortable with high risks as the fund will invest in companies with the same theme. These funds are suitable for investors who are bullish on PSU stocks. So, you should have a solid understanding of the theme before you invest in such funds. If there is a change in government policy affecting the theme, then it will impact the fund returns. Also, entry and exit timings matter in these funds, so we can not define the ideal time horizon for any particular thematic fund. Some themes may play out rapidly and others will take time. You should not allocate more than 10% of your portfolio to any thematic funds.