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Government capex revival boosts appeal of PSU-focused mutual funds
PSU-oriented mutual funds are benefiting from government capex momentum, though policy sensitivity makes selective and long-term investing essential.
Public sector focused mutual funds are attracting renewed attention as government capital expenditure accelerates across infrastructure, power, and manufacturing sectors. Improved balance sheets, better earnings visibility, and policy support have strengthened the investment case for select PSU companies. Fund strategists caution that while valuations appear reasonable, PSU funds remain sensitive to policy changes and sector-specific risks, making disciplined allocation and longer investment horizons essential for investors.