BSE PSU Index Fund: Want to invest in government companies? Kotak Mahindra AMC launches BSE PSU Index Fund

Kotak BSE PSU Index Fund :Kotak Mahindra Asset Management Company Limited (KMAMC/Kotak Mutual Fund) has announced the launch of Kotak BSE PSU Index Fund. This is an open-ended scheme mimicking or tracking the BSE PSU Index. The scheme is opening for public subscription on July 10, 2024 and will close on July 24, 2024. Investors can invest in this scheme with an initial amount of Rs 100 and a maximum amount of any amount.

56 PSU stocks in the index

The BSE PSU Index currently comprises 56 PSU stocks selected from the BSE 500 Index. The index covers a diverse range of public sector undertakings across different sectors. The fund offers a relatively cost-effective and transparent way to invest in the Indian stock market, which also diversifies the investor’s portfolio by investing in public sector companies across different sectors.

The benefit of diversification

Speaking on the launch, Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company Limited said, “At Kotak Mutual Fund, we constantly strive to provide our investors with a variety of investment options. The launch of Kotak BSE PSU Index Fund is in line with our commitment to offer products that meet the needs of investors based on their risk appetite and the time horizon for which they wish to invest.

While PSU stocks present a mixed opportunity with different opportunities across sectors, this index fund allows investors to gain broad exposure to the PSU segment. The fund provides a well-systematic way to invest in PSU companies, allowing investors to passively participate in the potential of this segment while managing risk through diversification.

Opportunity for those investing in PSU

Devendra Singhal, Executive Vice President & Fund Manager, Kotak Mahindra AMC said that Kotak BSE PSU Index Fund represents a significant growth in our product lineup, which caters to the needs of investors who wish to invest in India’s public sector companies. Talking about PSUs, they play a vital role in key sectors of our economy, from energy and finance to defense and infrastructure.

While individual PSU stocks may perform differently, this index-based investment strategy allows investors to potentially benefit from overall growth and reforms in the public sector. As India continues its economic growth journey, this fund offers investors an opportunity to be a part of that journey through comparatively cost-effective and systematically managed investments.

(Note: Past performance may or may not be maintained in future. Hence investors may consult their financial experts before taking any investment decision.)