PSU Mutual Funds Defy 2026 Market Slump – Up to 29% Returns in 1 Year!
New Delhi, March 21, 2026 – While broader markets struggle in 2026, PSU-themed mutual funds stand out as top performers. These funds (focused on SBI, BPCL, Bank of Baroda, NTPC etc.) gave positive returns YTD, with 3-year annualized at ~30.5% and 5-year at ~27.3% (as of March 11).
Top PSU MF Performers (Annualized Returns):
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Kotak BSE PSU: Leading with strong 1-year gains
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SBI PSU: ~23-28% in recent horizons
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Invesco India PSU Equity: 26-31% in 3-5 years
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ICICI Prudential PSU Equity: Solid mid-cap exposure
Why PSU MFs Outperform Government infra push (Budget 2026 capex ₹12.2 lakh crore) boosts PSUs in energy, defence, railways. SBI (up 49%), Bank of Baroda (43%), BPCL (23%) drive fund gains.
Best for long-term investors seeking stability amid volatility..