SBI Mutual Fund Bets Big on Energy: Launches SBI Energy Opportunities Fund
Feb 06, 2024
SBI Mutual Fund launches – SBI Energy Opportunities Fund
It is an open-ended equity scheme following the energy theme.
Accordingly, the investment objective of the scheme is to provide investors with opportunities for long term capital appreciation by investing in equity and equity related instruments of companies engaging in activities such as exploration, production, distribution, transportation and processing of traditional & new energy including but not limited to sectors such as oil & gas, utilities and power.
However, there can be no assurance that the investment objective of the Scheme will be realized.
Under normal circumstances, SBI Energy Opportunities Fund will hold an allocation of 80% to 100% in Equity and equity related instruments of companies engaged in energy (traditional & new) and allied business activities theme. (including equity derivatives), 0% to 20% in Other equity & equity related instruments (including equity derivatives), 0% to 20% in Debt securities (including securitized debt^ & debt derivatives) and money market instruments including tri-party repos and 0% to 10% in Units issued by REITs and InvITs.
As per the Scheme Information Document, SBI Energy Opportunities Fund aims to maximize long-term capital appreciation by investing (at least 80% of the net assets) in domestic and/or overseas companies engaging in activities such exploration, production, distribution, transportation and processing of traditional & new energy including but not limited to sectors such as oil & gas, utilities and power.
The fund manager will adopt an active management style & will follow bottom-up approach to stock picking to optimize returns. The scheme will invest in diversified portfolio of stocks across market capitalization.
SBI Energy Opportunities Fund’s performance will be benchmarked against Nifty Energy TRI
The scheme will be managed by Mr Raj Gandhi and Mr Pradeep Kesavan (fund manager)
[Read: Investing in India's Electrifying Future: Top 5 Power & Energy Sector Mutual Funds]
The NFO opens for subscription on February 06, 2024 and closes on February 20, 2024. The schemes will reopen for continuous sale and repurchase Within five business days of allotment date.
The minimum subscription amount is Rs 5,000/- and in multiples of Re.1/- thereof.
The scheme offers Regular Plan and Direct Plan each plan offers Growth option and Income Distribution cum capital withdrawal Option (IDCW).