I have large losses in SBI PSU Fund. Please advise me what I should do with this investment.
- Vijay Mohan
Normally investing in the public sector is not a great idea. However, there are situations when an experienced equity investor may be able to make good tactical investments and make some money. But as a longer term investment strategy, it rarely works out, simply because the government is a poor business manager that is generally more interested in stripping cash from PSUs as subsidies and dividends in order to help with its free-spending ways.
For these reasons alone, we believe there is not much point in investors trying to figure out whether a particular PSU fund is good or bad. The underlying PSU stocks are not a good long-term investment, therefore you should not be invested in any PSU fund.
This article was originally published on April 14, 2014.
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