PSU Themes Mutual Funds

The Thematic PSU Mutual Fund used a top-down strategy to identify themes and companies across sectors and market capitalisations within the PSU space. Here are the following points:

1. Theme Identification
   

   Fund managers identify a theme expected to have potential growth, like infrastructure development or renewable energy.

2. PSU Focus
   

   Investment in limited PSUs, government-owned companies backed by the government.

3. Cross-Sectoral Investment
   

   Fund managers invest in sectors that benefit from the chosen theme, which builds a diversified PSU portfolio & invests in companies.

4. Create Portfolio
   

   Create a diversified portfolio of PSU stocks across different market capitalisations that suit the chosen theme and government policies.

5. Monitoring & Management
   

   Fund managers monitor & adjust the portfolio based on the companies' performance with the thematic theme and maximise returns.

Here the list of best PSU Mutual Funds in India:

*As on 01-Sep-2025

Here are the various benefits of investing in PSU Funds:

• Stability & Safety: PSU funds that invest in government-backed companies reduce the overall risk, offer stable & safe investment chances.

• Higher Returns: These funds provide higher potential returns than other investment options like fixed deposits.

• Low Risk: Investing in PSUs with government backing lower down the risk, suits for conservative investors.

• Liquidity: They fund mainly invests in highly liquid assets, making them easy to sell or buy.

• Diversification: PSU funds offer liability to many sectors, helping investors diversify their portfolios & reduce risk.

• Dividends: Many PSU companies give regular dividends, making this funds ideal for a regular cash flow investor.

• Long-Term Growth Potential: With a focus on government-backed companies, PSU funds have the potential for long-term growth. 

Investing in PSU Mutual Funds through MySIPonline is an easier and hassle-free process that can be done in just a few steps:

Step 1: Sign Up or Log In

Visit MySIPonline create a new account or log in if you already have one.

Step 2: Select a PSU Fund

Select the PSU Mutual Funds that align with your investment goals, such as SBI PSU Fund - Regular Plan - Growth.

Step 3: Choose Investment Type

Choose between a Lumpsum investment and a Systematic Investment Plan (SIP), which requires a minimum SIP of Rs500 and a lumpsum of Rs 5,000.

Step 4: Complete KYC

Complete KYC process with MySIPonline. They will guide you through the process as uploading documents to verifying your identity.

Step 5: Make Payment

Link your demat account and complete the payment via net banking, UPI or other available methods.

Step 6: Track Your Investment

After investment, you can track your portfolio by the MySIPonline dashboard. You can also set up alerts for performance reports.

Investing in PSU Funds is seen as safe, but have some risks. Here is why they are considered safer:

• Government Backing: PSU funds invest in government-owned companies, bringing down risk and ensuring stability.
• Stable Companies: Focus on large, well-established companies in sectors like banking and energy. These sectors support an economy that secures long-term growth.
• Lower Fluctuations: Compared to private-sector funds, PSU funds has less price ups and downs, making them suitable for making them safer for beginner investors who prefer stability.
• Supportive Policies: Even during an economic crisis, government policies and initiatives provide growth and support to PSU companies.

Here is a quick breakdown of taxation on PSU Funds: 

1. Equity PSU funds
   • Short-term gains  (
   • Long-term gains (>12 months): Taxed at 5%,firstly Rs 1.25 lakh exempt per year
2. Debt PSU funds
   • Bought after April 1, 2023: Gains taxed as per the income tax slab, no indexation
   • Bought before April 1, 2023: LTCG taxed 20% with indexation,STCG by slab rate.
3. Dividends
   • All dividends are taxed at the applicable income tax slab rate.