Mutual Fund Investments in PSU Stocks Reach Record High of 7.58% in January

Mutual funds have increased their investments in Public Sector Undertaking (PSU) stocks to a new record high of 7.58% in January. This indicates a growing interest among mutual fund managers in PSU companies.

PSU stocks are shares of companies that are owned and operated by the government. These companies play a significant role in the economy, and investing in them can be attractive due to their stable nature and government backing.

One reason for this increase in mutual fund investments could be the attractive valuations of PSU stocks compared to their private sector counterparts. Additionally, the government’s focus on disinvestment and reforms in PSU companies may be boosting investor confidence in these stocks.
For example, shares of companies like Oil and Natural Gas Corporation (ONGC) and Bharat Heavy Electricals Limited (BHEL), both PSU companies, have seen increased interest from mutual funds.

Overall, the rise in mutual fund investments in PSU stocks reflects growing confidence and interest in these companies. It will be interesting to see if this trend continues in the coming months, especially with the government’s ongoing efforts to reform and privatize PSU companies.

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Krishna Rath is a SEBI Registered Investment Adviser, and since 2015 has been educating netizens on investments and insurance. Krishna is a fee only SEBI RIA and is Odisha's first SEBI RIA. With background in IT, Krishna is changing the advisory space with new innovations in AdvisoryTech.

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