Public Sector Banks considered as the backbone of our economy have been instrumental in escalating our Indian economic growth since last many years. We saw the likes of SBI, UNION BANK OF INDIA, BANK OF BARODA, BANK OF INDIA giving tremendous returns to the investors over the past 20 years. Great Governance, Quality Leadership, Due Diligence by the employees of the PSB’s has been an essential part of their growth which in turn gave a boost to our Indian Economy. But as it is rightly said all the good things face speed breakers in their road to strengthening the economy. The PSB’s which seem to have hit a roadblock due to the issues relating to scams and frauds by some of the Indian Industrialists in turn have caused losses to the banks and also the investor’s money. We have seen giants like SBI, PNB,UNION BANK OF INDIA, BANK OF BARODA, etc. face the heat because of these frauds. But because we have the finest brains heading our PSB’s and the Government, the retail investor has been rest assured that things are on right track to make the economic structure of PSB’s more favorable for the people of our country. As a Trader/Investor it is a basic rule to buy stocks at lower levels and sell at higher levels. We see the PSB’s at very low levels which from an Investor/Trader point of view is a very good opportunity. But it becomes very difficult to pick up the best PSU bank stocks since there are a lot many of them. Only a seasoned Trader/Investor can pick up stocks like a pro. But to make things easy for the common man, Mutual funds have been highly instrumental in providing decent returns to investors over years specifically in the PSB sector where things have been like a roller coaster. When we talk about Kotak PSU Bank Mutual Fund (CMP Rs 240), in the past 1 year it has given good returns to the investors which are as follows-
| Closing Price (3rd July 2018) | High Price (15th January 2019) | ROI Period |
| 275.07 | 373.20 | 26.30% (7 Months) |
| Closing Price (18th Feb 2019) | High Price (8thjuly 2019) | ROI Period |
| 266.82 | 355 | 25.60% (6 Months) |
So in this period of high volatility,this mutual fund was able to give very good returns. So since we consider the hard work of the government to make things better for the PSB’s we can see them rising soon enough. Hence instead of trying hard to pick up the right stocks among so many stocks,this mutual fund looks good to provide decent returns over a period of time. So currently trading at Rs 240, if bought in the range of Rs 200 – Rs 250, there will be a very good chance to see this particular fund testing the previous highs very soon.