DIPAM Pushes for PSU Picks in MF Portfolios

The Department of Investment and Public Asset Management (DIPAM) plans to nudge mutual fund houses to consider including public sector undertaking (PSU) stocks in their core investment portfolios, highlighting the strong value and dividend returns delivered by state-run firms in financial year 2024-25 (FY25).

- HARSH KUMAR

"While the market capitalization (mcap) of PSUs is only 10 per cent of the overall mcap, they have distributed 25 per cent of the total dividends. We would suggest that fund managers include PSU stocks in their portfolios so that common investors, senior citizens, and minority shareholders can deploy their savings productively and partake in the value created by PSUs," DIPAM Secretary Arunish Chawla said during a media briefing on Wednesday.

Chawla observed that central public sector enterprises had announced record dividends of ₹1.5 trillion in FY25, with the government's share reaching ₹74,016 crore—a reflection of strong performance and consistent shareholder returns.