Boom, bust, repeat: The PSU way

Summary: PSU funds have returned to the spotlight, and investors suddenly have several index options to choose from. But are these products really as different as they appear? This story looks beyond the names to uncover what you may actually be buying. PSU stocks have made a dramatic comeback. After spending much of the last decade disappointing investors, they have become some of the market’s biggest winners since 2021. Unsurprisingly, investors wanting to ride the theme are returning to PSU funds and ETFs. They have four broad passive indices: Nifty CPSE, Bharat 22, Nifty PSE and BSE PSU. At first glance, they might look different. One holds just 11 companies while another owns 60. Some track central public sector enterprises, others cast a wider net. Look closer, though, and the differences begin to shrink. Different labels, many of the same themes The four indices do differ sharply in breadth and concentration. Nifty CPSE is the narrowest and most concentrated: its top five holdings account for 86.6 per cent of the index, and almost two-thirds of the portfolio sits in energy and utilities alone. BSE PSU is much broader, with 60 stocks and a more balanced sector mix, while Bharat 22 and Nifty PSE sit somewh

This article was originally published on July 20, 2026.