Kotak BSE PSU Index Fund(IDCW Payout)

Ticker: mf17455
Risky 48/100

☆ Add to Watchlist

More Options

Business Overview

The Kotak BSE PSU Index Fund (IDCW Payout) is designed for investors looking to gain exposure to public sector undertakings in India. This fund tracks the BSE PSU Index, making it an ideal choice for those who believe in the long-term growth potential of government-backed companies. It offers a systematic way to invest in a diversified portfolio of PSU stocks, providing both stability and growth opportunities.

  • Tracks the BSE PSU Index for diversified exposure
  • Ideal for long-term investors seeking stability
  • Focuses on government-backed companies
  • Offers potential for capital appreciation
  • Suitable for investors looking for regular income through IDCW

Investment Thesis

The Kotak BSE PSU Index Fund offers a compelling investment opportunity with a strong promoter group known for credibility. The fund's focus on digital services positions it well for growth, while its attractive valuation compared to peers enhances its appeal for retail investors seeking long-term gains.

  • Strong backing from the reputable Kotak Mahindra Group.
  • Significant growth potential in digital services sector.
  • Attractive valuation compared to other PSU-focused funds.
  • Diversified exposure to top-performing PSU stocks.
  • Ideal for investors looking for stability and growth.

Opportunity vs Risk

Opportunities
  • Strong government support for PSU sector
  • Potential for high dividend payouts
  • Diversification in public sector investments
  • Long-term growth in infrastructure spending
Risks ⚠️
  • Market volatility affecting PSU stocks
  • Regulatory changes impacting public sector
  • Dependence on government performance
  • Economic slowdown affecting earnings

Peer Perspective

Kotak BSE PSU Index Fund trades at a slight premium compared to peers like SBI and PNB. A rerating could occur with improved margin stability and consistent growth in the underlying PSU sectors.
📊 Stock Investment Checklist (100 Points)
Kotak BSE PSU Index Fund(IDCW Payout) • Updated: 2025-10-01 03:35:20
  • 10
    Business
    High
    The fund is invested in a sector that is evolving, but lacks a clear moat.
  • 10
    Growth
    High
    Revenue and profit growth have been inconsistent across the underlying PSU stocks.
  • 10
    Profitability
    High
    ROE and ROCE are below industry averages, with OCF not consistently exceeding net profit.
  • 8
    Valuation
    High
    Valuation metrics like P/E and P/B are higher than peers, indicating potential overvaluation.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity is a concern for some holdings.
  • 9
    Governance
    High
    Promoter holding is stable, but there are concerns about transparency in disclosures.
  • 5
    Drivers
    Good
    Growth catalysts are limited, with significant execution risks in the PSU sector.
  • 5
    Technicals
    Good
    Market sentiment is neutral, with low liquidity affecting price action.
Final Score & Verdict
Score 48 / 100 • Risky
The Kotak BSE PSU Index Fund presents several risks due to inconsistent growth and profitability metrics, alongside high valuations compared to peers. Caution is advised for potential investors.