NFO Alert: SBI Mutual Fund launches SBI Energy Opportunities Fund; all you need to know

SBI Mutual Fund announced the launch of the SBI Energy Opportunities Fund. The scheme opened for public subscription on February 06, 2024, and will close on February 20, 2024. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.

What kind of mutual fund scheme is this?

This is an open-ended index equity scheme following the energy theme. This product is suitable for investors seeking

• Long-term capital appreciation.
• Investment in equity and equity-related instruments of companies engaged in and/or expected to benefit from the growth in traditional, new energy sectors and allied business activities.

What is the main objective of investing in this fund?

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 and 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.

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of ₹5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:

Are there similar mutual funds in the market?

To date, other asset management companies (AMCs) have launched similar funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:

How will the scheme benchmark its performance?

The same has been chosen as this scheme primarily invests in securities that are constituents of the Nifty Energy TRI. The scheme is benchmarked to Nifty Energy TRI as the index constituents reflect the underlying fund’s universe in the best possible manner. The composition of the aforesaid benchmark is such that it is most suited for comparing the performance of the scheme.

Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” will be charged as

•           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

Who will manage this scheme?

Raj Gandhi and Pradeep Kesavan, who serves as the dedicated fund manager for overseas securities, are integral members of the fund management team for the SBI Energy Opportunities Fund.

Does the fund contain any inherent risk?

The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.