Publish Date:
SBI Mutual Fund has launched SBI Automotive Opportunities Fund.
SBI Automotive Opportunities Fund is an open-ended actively managed equity scheme. It is a thematic fund that will primarily invest in key automotive segments namely:
- Original equipment manufacturers (OEMs)
- Auto component manufacturers
- Auto exports
- Electric mobility
[Read: Automobile Sector: Gear up Your Investment Portfolio with These Top 5 Mutual Funds]
[Read: Top 5 Mutual Funds with High Exposure to EV Revolution]
The fund aims to generate long-term capital appreciation by investing at least 80% of its net assets in equity and equity-related instruments of companies engaged either directly or indirectly in automotive & allied business activities theme. The fund manager will follow the bottom-up approach to stock-picking to optimize returns. The fund will invest in diversified portfolio of stocks across market capitalization.
In terms of risk-o-meter, SBI Automotive Opportunities Fund being a thematic fund carries higher risks versus diversified equity mutual funds on account of concentration and theme specific risks.
SBI Automotive Opportunities Fund is benchmarked against the Nifty Auto Index - TRI. The Nifty Auto Index is designed to reflect the behaviour and performance of the Automobiles segment of the financial market. The Nifty Auto Index comprises 15 tradable, exchange listed companies. The index represents auto related sectors such as, Automobiles 4 wheelers, Automobiles 2 & 3 wheelers, Auto Ancillaries, and Tyres. Nifty Auto Index is computed using the free float market capitalization method and includes stocks forming part of the Nifty 500 Index.
The following stocks are currently the top constituents of the Nifty Auto Index.
Data as of April 30, 2024
(Source: niftyindices.com)
SBI Automotive Opportunities Fund will be managed by Mr Tanmay Desai. Mr Desai is a B.E (Electronics), MBA (Finance), C.F.A (USA) Level III candidate by qualification. He has close to 15 years of work experience with over 6 years of experience in Indian capital markets.
SBI Automotive Opportunities Fund is open for subscription from May 17, 2024 to May 31, 2024. The fund will reopen for continuous sale and repurchase within 5 days from the date of allotment.
The fund offers Direct Plan and Regular Plan. Under each plan the fund offers Growth, Income Distribution cum Capital Withdrawal - Payout, and Reinvestment of IDCW options.
The minimum subscription amount is Rs 5,000 and any amount thereafter.
Watch this video to find out the top 5 mutual funds with high exposure to EV stocks: