Rs 18,900 crore bet! Bharat theme grabs eyeballs as global growth in doldrums
equities lost steam as inflation and rate hike concerns resurfaced. Despite the noise around macroeconomic risks, one thing that investors have kept their faith on is the domestic growth story.
A glimpse of this could be seen in the strong inflows in thematic/sectoral funds.
Thematic/sectoral funds have garnered inflows of more than Rs 18,900 crore, so far in 2023.
This category received the second highest inflows after smallcap funds that witnessed inflows to the tune of Rs 28,984 crore.
At a time when global macroeconomic conditions aren’t conducive, India is shining bright and this has seen investors increasing bets on stocks in the domestic-oriented sectors.
Shares of public sector companies are witness to this, as they have given stellar returns this year. Year-to-date, the S&P BSE PSU index has given more than 25% returns, while the BSE CPSE index has given more than 37% returns.
Some of the prominent gainers in the PSU space are Bharat Heavy Electricals, Coal India, Hindustan Aeronautics, NTPC, and Power Grid Corporation of India, giving high double-digit returns to investors year-to-date.
Further, a look at the thematic funds also showed that PSU schemes have given handsome returns over the last one year.
Aditya Birla Sun Life PSU equity fund has given a staggering 47.4% returns over a 1-year period. NTPC, Coal India, Power Grid Corporation of India are among the funds’ top holdings.
SBI PSU Direct Plan Growth is another fund that has given strong returns of over 43% over a 1-year period. BHEL, Coal India, Power Grid Corp, Hindustan Aeronautics are among the funds’ top holdings.
The third best performing fund was Invesco India PSU Equity fund, giving 40% returns to investors.
