wealth4u: [62] PSUs= The Opportunity is NOW!

Wednesday, 21 October 2009

[62] PSUs= The Opportunity is NOW!

PSUs: The Opportunity is Now!

Mughal emperor Akbars darbar (court) had nine extraordinary men who advised him on different matters. Conferred with the title of Navratna (nine gems) they soared to almost legendary heights in their respective area of activity. The modern day Navratnas in India, honoured by the Government of India,are the

new crown jewels of the nation. These Navratnas are the best Indian homegrown companies, which have become the flag-bearers in their respective area of activity. For e.g., companies like ONGC, NTPC, SBI etc. have almost become synonymous with Oil, Power and Banking respectively, in India.

But fortunately for investors, unlike Akbars court, this is not an exclusive club. The mini-ratna companies in India are getting ready to break into the big league and are standing out for their efficiency and performance. With more and more PSUs entering the market like NHPC, Oil India etc., and many more on the roadmap, the opportunities are ever expanding.

Religare PSU Equity Fund will invest in such public sector undertakings (PSUs) in India, and give you the chance to be the modern day Akbar.

1, 2 Source: D& B Report

Portfolio Characteristics


	Investment Universe: The Fund will invest in companies where the Central / State Government have majority shareholding or where the management control lies with the Government.



	Investment Style:The Fund will have no market capitalization bias and will be style neutral. Bottom up and top down approach to create a diversified portfolio of stocks.



	Stock Universe: The Fund will invest in Government companies having presence in core sectors and companies, which are expected to benefit from the divestment process and reforms. At least 65% of the assets will be invested in companies which are part of the BSE PSU Index. Portfolio to comprise of 25 - 30 stocks.



	The Fund will also participate in forthcoming IPOs of Government companies.



	The Fund mandate provides the flexibility to hold upto 20% of the companies even after Government exits or becomes a minority shareholder. e.g. Maruti Suzuki.