Despite having a monopolistic situation in many businesses, many #PSUcompanies haven't generated attractive #returns for their #shareholders. More than for #investors, the govt. is likely to benefit by the provision of allowing 80C deduction on #investments. #Budget2019
PSU #ETFs have a high portfolio concentration & single sectoral exposure. For eg. CPSE ETF holds over 60% of portfolio in energy sector & top 4 stocks constitutes over 75% of portfolio. Similarly, Bharat-22 holds 55% of portfolio in top 5 stocks. #Budget2019 @TheEconomist
#Investors having primary objective to #savetax, cannot ignore the performance of #ELSS #mutualfunds. Fund manager, considers number of factors like macroeconomic indicators, financial strength of a company & its competitive advantage etc. while constructing portfolio.#Budget2019
Contrary to the above #portfolio of PSU-focused ETF depends on the govt's #disinvestment plan. The stocks aren't selected on merit & track record of #PSUcompanies so far isn't very encouraging. #Investors would be better off avoiding PSU-focused #ETFs. #Budget2019 @bsindia @dna
PSU-focused #ETFs are nothing but thematic #funds following the theme #disinvestment. They have an expense ratio of 0.01%. The mediocre #returns they generate; they might prove extremely costly for #investors
ELSS is much better option to #savetax under 80C. #Budget2019 @livemint
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.