By Samachar Vishesh News
Chandigarh 10th December:- Aditya Birla Sun Life AMC Limited, a subsidiary of Aditya Birla
Capital Limited (a significant non-bank financial services’ conglomerate), and
investment manager to Aditya Birla Sun Life Mutual Fund (ABSLMF) announced
the launch of Aditya Birla Sun
Life PSU Equity Fund, an open-ended equity scheme following PSU theme.
This fund focuses on investing predominantly in
Public Sector Undertakings (PSUs) or companies where the government (State or
Central) is a majority shareholder with at least 51% shareholding. The fund is
diversified in nature and focuses on long term growth and appreciation of
capital.
Commenting
on the launch, A. Balasubramanian,
MD & CEO, Aditya Birla Sun Life AMC Limited said that PSUs typically dominate sectors that are core to the
economy and its growth such as Utilities, Oil & Gas, Metals & Mining,
Infrastructure, Defence, Engineering, Banking etc. He added that often, they
have a monopolistic position or large scale, with strong Return on Equity (RoE)
and steady cash flow from operations which allow them to give out high
dividends. Many of these have characteristics of bluechips in their respective
industries.
As India guns for its economic growth and infrastructure targets,
PSUs which dominate many key sectors of the economy would also grow, especially
in industries where setting up a new business unit requires huge capital,
regulatory clearances and/or expertise. Government policies, reform plans and
economic growth agenda will trigger the comeback for many of these companies
going forward.
A. Balasubramanian said that most PSUs are quality companies with strong balance
sheets and a potential to get re-rated over a period of time. The Government’s
increasing focus on strategic divestment plans will also help unlock value for
some of the PSUs. This combined with the attractive valuations and their
underlying intrinsic value makes them a compelling investment choice.
The minimum application amount for this fund is Rs.500/- and in
multiples of Re. 1/- thereafter, during the New Fund Offer period.
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