New Delhi, March 14 -- With equities on a steady downward spiral due to a host of factors, including the war in the Middle East, is there any sliver of hope left in the space? While most equity mutual fund (MF) categories have slipped into the red during the short-term and have not generated great returns in the three and five-year timeframe, funds that invest in shares of PSUs (Public Sector Units) have been an exception.

MFs, which deploy money exclusively in shares of PSUs, are among the only three equity fund categories that have given positive returns so far in 2026. Incidentally, the category is the best performer among equity funds in the three and five-year horizon offering investors 30.5% and 27.3% (as on March 11) returns on an...