{"id":152242,"date":"2026-07-15T12:27:04","date_gmt":"2026-07-15T06:57:04","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=152242"},"modified":"2026-07-15T12:27:05","modified_gmt":"2026-07-15T06:57:05","slug":"best-psu-mutual-funds-etfs-invest-2026","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/","title":{"rendered":"Best PSU-Focused Mutual Funds and ETFs to Invest in 2026"},"content":{"rendered":"<div class=\"meta-block\">\u00a0<\/div>\n<p style=\"border-left: 4px solid #1F4E79; background: #EBF3FB; padding: 10px 16px; font-style: italic;\"><em>CPSE ETF NAV Rs 95.91, 5-year annualised return 29.76%. Bharat 22 ETF NAV Rs 120.25, AUM Rs 10,786.89 Cr, 1-year return 10.09%.<\/em><\/p>\n<p>CPSE ETF and Bharat 22 ETF are among the best PSU-focused mutual funds and ETFs to invest in 2026, offering investors diversified exposure to India&#8217;s public sector companies through a single, passively managed investment rather than picking individual PSU stocks.<\/p>\n<p>For investors seeking broad PSU sector exposure without the effort of researching and selecting individual stocks, best PSU-focused mutual funds and ETFs to invest in 2026 provide a diversified, professionally constructed basket that tracks established PSU indices.<\/p>\n<p style=\"margin-top: 24px;\"><a href=\"https:\/\/univest.in\/user\/log-in?utm_source=blogs&amp;utm_medium=psu-mutual-funds-etfs-2026\"><strong>Click Here &#8211; Get Free Investment Predictions<\/strong><\/a><\/p>\n<p>This article examines CPSE ETF and Bharat 22 ETF as best PSU-focused mutual funds and ETFs to invest in 2026, covering their portfolio composition and the risks of passive PSU sector investing.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/#What_Makes_a_Fund_a_Best_PSU-Focused_Pick_for_2026\" title=\"What Makes a Fund a Best PSU-Focused Pick for 2026\">What Makes a Fund a Best PSU-Focused Pick for 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/#Why_These_Funds_Rank_Among_the_Best_PSU-Focused_Options_for_2026\" title=\"Why These Funds Rank Among the Best PSU-Focused Options for 2026\">Why These Funds Rank Among the Best PSU-Focused Options for 2026<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/#CPSE_ETF_Concentrated_PSU_Exposure_With_Strong_Returns\" title=\"CPSE ETF: Concentrated PSU Exposure With Strong Returns\">CPSE ETF: Concentrated PSU Exposure With Strong Returns<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/#Bharat_22_ETF_Broader_Six-Sector_Diversification\" title=\"Bharat 22 ETF: Broader Six-Sector Diversification\">Bharat 22 ETF: Broader Six-Sector Diversification<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/#Factors_Affecting_Best_PSU-Focused_Mutual_Funds_and_ETFs_to_Invest_in_2026\" title=\"Factors Affecting Best PSU-Focused Mutual Funds and ETFs to Invest in 2026\">Factors Affecting Best PSU-Focused Mutual Funds and ETFs to Invest in 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/#Benefits_of_Best_PSU-Focused_Mutual_Funds_and_ETFs_to_Invest_in_2026\" title=\"Benefits of Best PSU-Focused Mutual Funds and ETFs to Invest in 2026\">Benefits of Best PSU-Focused Mutual Funds and ETFs to Invest in 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/#Risks_of_Best_PSU-Focused_Mutual_Funds_and_ETFs_to_Invest_in_2026\" title=\"Risks of Best PSU-Focused Mutual Funds and ETFs to Invest in 2026\">Risks of Best PSU-Focused Mutual Funds and ETFs to Invest in 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/#How_to_Choose_Among_Best_PSU-Focused_Mutual_Funds_and_ETFs_to_Invest_in_2026\" title=\"How to Choose Among Best PSU-Focused Mutual Funds and ETFs to Invest in 2026\">How to Choose Among Best PSU-Focused Mutual Funds and ETFs to Invest in 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/#How_to_Invest_in_Best_PSU-Focused_Mutual_Funds_and_ETFs_to_Invest_in_2026\" title=\"How to Invest in Best PSU-Focused Mutual Funds and ETFs to Invest in 2026\">How to Invest in Best PSU-Focused Mutual Funds and ETFs to Invest in 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/#FAQs\" title=\"FAQs\">FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/#Which_are_the_best_PSU-focused_mutual_funds_and_ETFs_to_invest_in_2026\" title=\"Which are the best PSU-focused mutual funds and ETFs to invest in 2026?\">Which are the best PSU-focused mutual funds and ETFs to invest in 2026?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/#What_is_CPSE_ETFs_historical_return\" title=\"What is CPSE ETF&#8217;s historical return?\">What is CPSE ETF&#8217;s historical return?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/#How_is_Bharat_22_ETF_different_from_CPSE_ETF\" title=\"How is Bharat 22 ETF different from CPSE ETF?\">How is Bharat 22 ETF different from CPSE ETF?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/#What_is_Bharat_22_ETFs_AUM\" title=\"What is Bharat 22 ETF&#8217;s AUM?\">What is Bharat 22 ETF&#8217;s AUM?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/#Are_these_PSU_ETFs_suitable_for_all_investors\" title=\"Are these PSU ETFs suitable for all investors?\">Are these PSU ETFs suitable for all investors?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/best-psu-mutual-funds-etfs-invest-2026\/#What_risks_apply_to_PSU-focused_mutual_funds_and_ETFs\" title=\"What risks apply to PSU-focused mutual funds and ETFs?\">What risks apply to PSU-focused mutual funds and ETFs?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Makes_a_Fund_a_Best_PSU-Focused_Pick_for_2026\"><\/span><strong>What Makes a Fund a Best PSU-Focused Pick for 2026<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Best PSU-focused mutual funds and ETFs to invest in 2026 are passively managed funds that track established PSU indices, providing diversified exposure across multiple government-owned companies rather than concentrating risk in a single stock.<\/p>\n<p>These funds typically differ in their specific index construction, sector weighting and inclusion criteria, making it important to understand each fund&#8217;s underlying methodology before selecting between available options.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_These_Funds_Rank_Among_the_Best_PSU-Focused_Options_for_2026\"><\/span><strong>Why These Funds Rank Among the Best PSU-Focused Options for 2026<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>CPSE ETF&#8217;s low-cost, energy-heavy PSU exposure and Bharat 22 ETF&#8217;s broader six-sector diversification both illustrate why these are frequently cited as best PSU-focused mutual funds and ETFs to invest in 2026 for different investor preferences.<\/p>\n<ul>\n<li><strong>CPSE ETF&#8217;s low-cost passive structure:<\/strong> Among best PSU-focused mutual funds and ETFs to invest in 2026, CPSE ETF invests at least 80 percent of assets in PSU companies.<\/li>\n<li><strong>Bharat 22 ETF&#8217;s broader diversification:<\/strong> Bharat 22 ETF spans six sectors and 22 companies, including select private sector names like L&amp;T alongside core PSUs.<\/li>\n<li><strong>Strong historical returns track record:<\/strong> CPSE ETF has delivered a 5-year annualised return of 29.76 percent, reflecting the broader PSU sector re-rating.<\/li>\n<li><strong>Government disinvestment mechanism origin:<\/strong> Both ETFs originated as government disinvestment vehicles, bundling PSU stake sales into structured, tradeable products.<\/li>\n<\/ul>\n<table border=\"1\" cellspacing=\"0\" cellpadding=\"6\">\n<tbody>\n<tr>\n<th>Fund<\/th>\n<th>NAV (Rs)<\/th>\n<th>5-Year Return<\/th>\n<th>Focus<\/th>\n<\/tr>\n<tr>\n<td>CPSE ETF<\/td>\n<td>95.91<\/td>\n<td>29.76% (annualised)<\/td>\n<td>Energy, oil and gas-heavy PSU basket<\/td>\n<\/tr>\n<tr>\n<td>Bharat 22 ETF<\/td>\n<td>120.25<\/td>\n<td>25.18%<\/td>\n<td>Diversified 6-sector, 22-company basket<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"CPSE_ETF_Concentrated_PSU_Exposure_With_Strong_Returns\"><\/span><strong>CPSE ETF: Concentrated PSU Exposure With Strong Returns<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>CPSE ETF is among the best PSU-focused mutual funds and ETFs to invest in 2026, tracking the Nifty CPSE Index with a mandate to invest at least 80 percent of assets in PSU companies, delivering a 5-year annualised return of 29.76 percent as of July 2026.<\/p>\n<p>The fund&#8217;s concentration in energy, oil and gas-heavy PSUs means its performance closely tracks these specific sub-sectors, making it a more focused rather than fully diversified PSU exposure option for investors.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Bharat_22_ETF_Broader_Six-Sector_Diversification\"><\/span><strong>Bharat 22 ETF: Broader Six-Sector Diversification<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Bharat 22 ETF rounds out the best PSU-focused mutual funds and ETFs to invest in 2026, spanning basic materials, energy, finance, FMCG, industrials and utilities across 22 companies, with an AUM of Rs 10,786.89 crore and a low expense ratio of 0.05 percent.<\/p>\n<p>The fund&#8217;s inclusion of select private sector holdings like L&amp;T, ITC and Axis Bank alongside core PSUs like SBI, Power Grid, NTPC and ONGC provides broader diversification than a purely PSU-only fund, appealing to investors wanting a more balanced sector exposure.<\/p>\n<p style=\"margin-top: 24px;\"><a href=\"https:\/\/univest.in\/sebi-registered-investment-advisor-india\"><strong>Get SEBI-Registered Advice on PSU Mutual Fund and ETF Selection<\/strong><\/a><\/p>\n<p style=\"margin-top: 24px;\"><em>Download the <a href=\"http:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"http:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&amp;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to track CPSE ETF and Bharat 22 ETF live prices.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Factors_Affecting_Best_PSU-Focused_Mutual_Funds_and_ETFs_to_Invest_in_2026\"><\/span><strong>Factors Affecting Best PSU-Focused Mutual Funds and ETFs to Invest in 2026<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Expense ratio comparison:<\/strong> Lower expense ratios directly improve net returns for passively managed PSU index funds over time.<\/li>\n<li><strong>Underlying index composition:<\/strong> Each fund&#8217;s specific index construction affects sector concentration and diversification levels.<\/li>\n<li><strong>Tracking error:<\/strong> The fund&#8217;s ability to closely replicate its benchmark index affects how faithfully it captures the PSU sector&#8217;s performance.<\/li>\n<li><strong>Liquidity for ETF units:<\/strong> Trading volume for the ETF units affects ease of entry and exit for investors.<\/li>\n<li><strong>Government disinvestment schedule:<\/strong> Since these ETFs originated from disinvestment, future government stake sale plans could affect fund composition.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Benefits_of_Best_PSU-Focused_Mutual_Funds_and_ETFs_to_Invest_in_2026\"><\/span><strong>Benefits of Best PSU-Focused Mutual Funds and ETFs to Invest in 2026<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Instant diversification:<\/strong> Best PSU-focused mutual funds and ETFs to invest in 2026 provide exposure to multiple PSU companies through one investment.<\/li>\n<li><strong>Low-cost passive management:<\/strong> Both funds carry low expense ratios compared to actively managed alternatives.<\/li>\n<li><strong>Professional index construction:<\/strong> Established index methodologies provide a structured, rules-based approach to PSU sector exposure.<\/li>\n<li><strong>Historical return track record:<\/strong> Both funds have delivered strong historical returns, reflecting the broader PSU sector re-rating since 2022.<\/li>\n<li><strong>Simplified PSU sector access:<\/strong> Investors gain PSU exposure without needing to research and select individual companies themselves.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Risks_of_Best_PSU-Focused_Mutual_Funds_and_ETFs_to_Invest_in_2026\"><\/span><strong>Risks of Best PSU-Focused Mutual Funds and ETFs to Invest in 2026<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Sector concentration risk:<\/strong> Best PSU-focused mutual funds and ETFs to invest in 2026 carry inherent PSU sector concentration risk despite internal diversification.<\/li>\n<li><strong>Government policy dependence:<\/strong> Fund performance remains tied to broader government PSU policy and disinvestment decisions.<\/li>\n<li><strong>Tracking error risk:<\/strong> Actual fund returns can deviate somewhat from the underlying index due to tracking error.<\/li>\n<li><strong>No active management adjustment:<\/strong> Passive funds cannot adjust holdings in response to company-specific concerns, unlike actively managed alternatives.<\/li>\n<li><strong>Past returns not indicative of future performance:<\/strong> Strong historical returns do not guarantee similar performance continues going forward.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Choose_Among_Best_PSU-Focused_Mutual_Funds_and_ETFs_to_Invest_in_2026\"><\/span><strong>How to Choose Among Best PSU-Focused Mutual Funds and ETFs to Invest in 2026<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>When picking among best PSU-focused mutual funds and ETFs to invest in 2026, compare expense ratios and their long-term impact.<\/li>\n<li>Assess whether you prefer CPSE ETF&#8217;s more concentrated energy-heavy exposure or Bharat 22 ETF&#8217;s broader diversification.<\/li>\n<li>Review each fund&#8217;s specific index methodology and sector weighting before investing.<\/li>\n<li>Consider liquidity and trading volume for the specific ETF units you plan to purchase.<\/li>\n<li>Evaluate historical returns in context, recognising that past performance does not guarantee future results.<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Invest_in_Best_PSU-Focused_Mutual_Funds_and_ETFs_to_Invest_in_2026\"><\/span><strong>How to Invest in Best PSU-Focused Mutual Funds and ETFs to Invest in 2026<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Use the Univest platform to research fund composition and historical performance for these ETFs.<\/li>\n<li>Open a demat and trading account with Univest for zero-brokerage execution.<\/li>\n<li>Track NAV and performance for CPSE ETF and Bharat 22 ETF through the Univest app.<\/li>\n<li>Consult a SEBI-registered advisor before allocating capital to PSU-focused index funds.<\/li>\n<li>Review your fund allocation periodically as PSU sector performance and government policy evolve.<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>CPSE ETF and Bharat 22 ETF represent some of the best PSU-focused mutual funds and ETFs to invest in 2026, offering diversified exposure to India&#8217;s public sector companies through low-cost, passively managed structures. Historically, both funds have delivered strong returns reflecting the broader PSU sector re-rating, though sector concentration risk and government policy dependence remain important ongoing considerations. Consult a SEBI-registered advisor before making investment decisions.<\/p>\n<div style=\"background: #CC0000; border-radius: 8px; padding: 16px 20px; margin: 24px 0;\">\n<p style=\"color: #ffffff; font-size: 13px; line-height: 1.7; margin: 0;\"><strong style=\"color: #ffffff;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Which_are_the_best_PSU-focused_mutual_funds_and_ETFs_to_invest_in_2026\"><\/span><strong>Which are the best PSU-focused mutual funds and ETFs to invest in 2026?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> CPSE ETF and Bharat 22 ETF are among the best PSU-focused mutual funds and ETFs to invest in 2026, offering diversified passive PSU sector exposure.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_CPSE_ETFs_historical_return\"><\/span><strong>What is CPSE ETF&#8217;s historical return?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> CPSE ETF, among the best PSU-focused mutual funds and ETFs to invest in 2026, has delivered a 5-year annualised return of 29.76 percent as of July 2026.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_is_Bharat_22_ETF_different_from_CPSE_ETF\"><\/span><strong>How is Bharat 22 ETF different from CPSE ETF?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Bharat 22 ETF, one of the best PSU-focused mutual funds and ETFs to invest in 2026, spans six sectors and includes select private companies, while CPSE ETF focuses more heavily on energy-linked PSUs.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_Bharat_22_ETFs_AUM\"><\/span><strong>What is Bharat 22 ETF&#8217;s AUM?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Bharat 22 ETF, among the best PSU-focused mutual funds and ETFs to invest in 2026, has an AUM of Rs 10,786.89 crore with an expense ratio of 0.05 percent.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_these_PSU_ETFs_suitable_for_all_investors\"><\/span><strong>Are these PSU ETFs suitable for all investors?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Best PSU-focused mutual funds and ETFs to invest in 2026 carry sector concentration risk and are best suited for investors comfortable with PSU-specific exposure as part of a diversified portfolio.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_risks_apply_to_PSU-focused_mutual_funds_and_ETFs\"><\/span><strong>What risks apply to PSU-focused mutual funds and ETFs?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Key risks include sector concentration risk, government policy dependence, tracking error, and the fact that past returns do not guarantee future performance.<\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Which are the best PSU-focused mutual funds and ETFs to invest in 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