NFO alert: SBI Mutual Fund launches SBI Energy Opportunities Fund; details inside

SBI Mutual Fund is launching a new open-ended equity scheme, SBI Energy Opportunities Fund, intending to provide long-term capital appreciation to investors. The fund will invest in companies across the entire energy spectrum, including traditional sectors like oil & gas and utilities, as well as new energy segments like solar and wind power. The New Fund Offer (NFO) is open for subscription from February 6 to 20, 2024, with a minimum investment of Rs 5,000. Remember, this is a thematic fund and carries inherent risks associated with the chosen sector. So, careful evaluation and alignment with your financial goals are crucial before investing.

Investment Objective

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.

The scheme may invest up to US $25 million in Overseas securities and invest up to US $10 million in Overseas ETFs.

Fund Managers

Raj Gandhi, Age: 41 Years

Pradeep Kesavan (Dedicated Fund Manager for Overseas Investments), Age: 44 years

Benchmark – Nifty Energy TRI

Peers Annual Returns

Management Commentary

Shamsher Singh, Managing Director & Chief Executive Officer, SBI Funds Management Limited, said: “The Energy sector is a multi-decade Atmanirbhar Bharat story as our country aims to move from being energy deficient to self-sufficient. Our country’s commitments towards Green Energy initiatives like COP26 (Panchamrit Strategy), the Green Hydrogen Mission, the Ethanol Blending Programme along with focused policy initiatives in the traditional energy sectors provide sufficient tailwinds for the Energy sector to grow in line with our country’s needs. As the largest fund house in the country, we believe the time for funds like SBI Energy Opportunities Fund is apt as they aim to capitalise and provide investors benefits from a theme which is at an inflection point.”

D P Singh, Deputy MD & Joint CEO, SBI Funds Management Limited, said, “The SBI Energy Opportunities Fund is an opportunity to participate in the growth of the India Energy sector. The sector has seen rapid strides in terms of infrastructure and policy reforms, helping improve the profitability of the sector. Historically, energy consumption in an economy is directly linked to economic growth. With our country expected to be the third largest economy in the world, its per capita energy consumption could also witness a significant rise and opportunities exist across the entire spectrum of the energy value chain. Investors who believe and seek to leverage this growth journey should look at investing in the fund in line with their risk profile and portfolio needs.”

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.