SBI Automotive Opportunities Fund: Open-ended equity scheme investing in automotive sector
SBI Automotive Opportunities Fund, an open-ended equity scheme focusing on the automotive and allied business activities theme. Learn about the fund’s investment objective, strategy, asset allocation, risk profile, and fund managers. The NFO is open from May 17, 2024, to May 31, 2024, with a minimum investment of Rs 5,000.
SBI Mutual Fund has introduced the SBI Automotive Opportunities Fund, a new thematic fund designed to provide investors with exposure to the automotive and allied business activities theme. This open-ended equity scheme aims to generate long-term capital appreciation by investing in companies within the automotive sector, both domestically and globally.
SBI Automotive Opportunities Fund details
| Fund Facts | Details |
|---|---|
| Scheme Name | SBI Automotive Opportunities Fund |
| Type of Scheme | An open-ended equity scheme following automotive & allied business activities theme. |
| Investment Objective | The investment objective of the scheme is to generate long-term capital appreciation to unit holders from a portfolio that is invested in equity and equity related instruments of companies engaged in automotive & allied business activities theme. However, there can be no assurance that the investment objective of the Scheme will be realized. |
| Plans & Options | Regular & Direct Plan; Both plans provide two options – Growth Option and Income Distribution cum capital withdrawal (IDCW) Option |
| Application Amount | Minimum Investment Amount: Rs 5000/- and in multiples of Re. 1 thereafter. Additional Purchase Amount: Rs. 1000/- and in multiples of Re. 1 thereafter. Minimum Monthly SIP Amount: Rs 500/- and in multiples of Re. 1 thereafter. |
| Fund Manager | Mr. Tanmaya Desai, Mr. Pradeep Kesavan (overseas securities) |
| Benchmark | NIFTY Auto TRI |
| Exit Load | For exit on or before 1 year from the date of allotment: 1% and For exit after 1 year from the date of allotment: Nil The AMC reserves the right to modify / change the load structure on a prospective basis. |
| NFO Open Date | May 17, 2024 |
| NFO Close Date | May 31, 2024 |
| Allotment Date | June 07, 2024 |
Investment Objective and Strategy of SBI Automotive Opportunities Fund
The primary goal of the SBI Automotive Opportunities Fund is to deliver long-term capital appreciation for unit holders by investing in equity and equity-related instruments of companies engaged in automotive and allied business activities. The fund’s strategy involves actively managing the portfolio through a bottom-up approach to stock selection, focusing on optimizing returns. The SBI Automotive Opportunities Fund will predominantly invest in a diversified portfolio of stocks across various market capitalizations, concentrating on companies expected to benefit from the growth in automotive and allied business activities.
Asset Allocation and Risk Profile
The SBI Automotive Opportunities Fund will allocate 80-100% of its assets in equity and equity-related instruments of companies within the automotive and allied business activities theme, including equity derivatives. Additionally, the fund may invest 0-20% in equity and equity-related instruments of companies outside this theme, 0-20% in debt and debt-related instruments, and 0-10% in units issued by REITs and InvITs.
Risk-o-meter:
| Types of Instruments | Risk Profile | Minimum Allocation | Maximum Allocation |
|---|---|---|---|
| Equities of companies engaged in automotive & allied business activities theme (including equity derivatives) | Very High | 80% | 100% |
| Equity (including equity derivatives) | Very High | 0% | 20% |
| Debt and money market | Low to Medium | 0% | 20% |
| REITs and InvITs | Medium to High | 0% | 10% |
Who should invest in the SBI Automotive Opportunities Fund?
The SBI Automotive Opportunities Fund is suitable for investors with a very high-risk appetite who are interested in the automotive and allied business activities theme. This fund is particularly appropriate for those with an investment horizon of 5 years or more, seeking long-term capital gains from equities investing in firms operating within or poised to benefit from the expansion of the automotive industry and allied applications.
Benchmark and Fund Managers
The SBI Automotive Opportunities Fund will be benchmarked against the Nifty Auto TRI. Tanmay Desai will manage the fund, with Pradeep Kesavan overseeing overseas investments. The fund managers’ expertise will be crucial in implementing the fund’s investment strategy and ensuring alignment with the stated objectives.
NFO Details and Subscription
The New Fund Offer (NFO) for the SBI Automotive Opportunities Fund is open from May 17, 2024, to May 31, 2024. Investors can subscribe to the fund with a minimum application amount of Rs 5,000 and in multiples of Re 1 thereafter. The fund offers systematic investment solutions like SIP and SWP to create a flexible investment plan, catering to varying investor preferences.
| Detail | Information |
|---|---|
| Exit Load | 0.01% |
| Exit Load Details | 0.01% of sell value, if sold before 365 days. |
| Entry Load | NIL |
| Stamp Duty | As per SEBI, 0.005% stamp duty will be levied on purchase of mutual funds, including lump sum, SIP, STP, and dividend reinvestment. |
| Minimum Investment | ₹ 5000.0 |
| SAI | https://www.sbimf.com/en-us/documents/statement-of-additional-information.pdf |
| Addendum | https://www.sbimf.com/en-us/notices-and-addendums |
The SBI Automotive Opportunities Fund presents an enticing opportunity for investors looking to capitalize on the growth potential of the automotive sector. With a well-defined investment objective, active management strategy, and experienced fund managers at the helm, this fund aims to provide investors with exposure to a sector poised for significant growth both in India and globally. As always, investors should carefully consider their risk appetite and investment horizon before making any investment decisions.