SBI PSU Fund - Direct Plan - Income Distribution cum Capital Withdrawal Option (IDCW)

SBI PSU Fund - Direct Plan - Income Distribution cum Capital Withdrawal Option (IDCW) ranks among the stronger performers in the Thematic category, backed by a 4-star rating. Consistent 3-year performance combined with a strong rating makes this one of the more credible options in its space. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 85/100.

Cost: At 0.86%, the expense ratio is meaningfully cheaper — about 20% below the Thematic category average of 1.08% (based on 665 comparable funds). Lower costs compound in your favour over long holding periods.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a modest Sharpe ratio of 0.23 — returns have only marginally compensated for the risk taken. Separately, annualised volatility of 14.87% is fairly typical for actively managed equity funds.

Who should invest: This fund is best suited to investors whose goals and risk appetite align with a Equity fund. Given the Very High risk rating, this fund is not suited to short-term goals or investors who may need to exit within 2-3 years.