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SBI Mutual Fund launches SBI Innovative Opportunities Fund; key details and insights
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5 min read | Updated on July 31, 2024, 20:05 IST
SUMMARY
SBI Innovative Opportunities Fund, launched on July 29, 2024, aims for long-term capital appreciation by investing in innovative companies across sectors. With a minimum subscription of ₹5,000, it focuses on India’s startup ecosystem, digital infrastructure, and government support, offering the potential for significant growth in sectors like e-commerce and fintech.
SBI Mutual Fund launches SBI Innovative Opportunities Fund; key details and insights
SBI Innovative Opportunities Fund is an open-ended equity scheme offered by SBI Mutual Fund. Aiming to provide long-term capital appreciation, the fund invests in equities and equity-related instruments of companies leveraging innovative strategies and themes. This sectoral/thematic fund was launched on July 29, 2024, with the New Fund Offer (NFO) closing on August 12, 2024. Investors can start with a minimum subscription of ₹5,000.
Why Innovative Opportunities Funds are Investible?
Focus on Innovation: The fund targets companies engaged in or expected to benefit from innovative strategies and themes. This approach leverages the accelerating pace of innovation across various sectors, including technology, healthcare, energy, and financial services.
Booming Startup Ecosystem: India hosts the third-largest startup ecosystem globally, with a significant number of unicorns. The country's favourable environment for startups, driven by government initiatives and a strong funding ecosystem, provides a fertile ground for innovation and growth.
Inherent Talent Pool: India boasts a vast and growing pool of STEM graduates, making it one of the largest sources of tech talent globally. The country's high AI skill penetration and proactive reskilling initiatives ensure a continuous supply of skilled professionals to drive innovation.
Strong Digital Infrastructure: Rapid expansion of India's digital ecosystem, including widespread smartphone adoption, extensive optical fibre network, and a high number of active 5G devices, supports the growth of digital businesses and innovations.
Growing Consumer Market: With a large and expanding middle class, India's consumer market presents significant opportunities for businesses to innovate and cater to evolving consumer needs.
Government Support: Various government initiatives, such as Startup India, Atal Innovation Mission, and the Production Linked Incentive (PLI) scheme, provide substantial support to startups and innovation-driven companies, enhancing the potential for long-term growth.
Sectoral Opportunities: The fund identifies several high-growth sectors like e-commerce, fintech, cloud computing, and electric vehicles, which are expected to see significant growth in the coming years, driven by technological advancements and increasing consumer adoption.
SBI Innovative Opportunities Fund
The investment objective of the SBI Innovative Opportunities Fund is to provide investors with opportunities for long-term capital appreciation by investing in equity and equity-related instruments of companies that seek to benefit from the adoption of innovative strategies & themes. However, there is no assurance that the investment objective of the scheme will be achieved.
Risk-o-meter
Funds Allocation
| Types of Instruments | Minimum Allocation (% of Net Assets) | Maximum Allocation (% of Net Assets) |
|---|---|---|
| Equity and equity related instruments of companies that seek to benefit from adoption of innovative strategies & theme (including equity derivatives). | 80 | 100 |
| Other equity & equity related instruments (including equity derivatives) | 0 | 20 |
| Debt & Money Market instruments. | 0 | 20 |
| Units issued by REITs & InvITs | 0 | 10 |
Who should invest in this fund?
This NFO of SBI Innovative Opportunities Fund is suitable for investors who are seeking wealth creation over the long term and want to invest predominantly in equity and equity-related instruments of large-cap companies.
Benchmark
The performance of the SBI Innovative Opportunities Fund will be benchmarked to the performance of the Nifty 500 TRI.
Peer Fund Schemes
| Scheme Name | AUM (Crore) | Expense Ratio (%) |
|---|---|---|
| Franklin India Opportunities | 4575.97 | 1.87 |
| ICICI Prudential Innovation Fund | 5721.12 | 1.83 |
| Samco Active Momentum Fund | 768.1653 | 2.33 |
| ICICI Pru India Opportunities | 21021.31 | 1.63 |
| ABSL Special Opportunities | 755.17 | 2.4 |
| Tata Housing Opportunities Fund | 637.96 | 2.31 |
| Axis Innovation Fund | 1270.9 | 2.22 |
| Bandhan Innovation Fund | 767.7552 | 2.24 |
| Baroda BNP Paribas Innovation | 1019.371 | 2.11 |
| UTI Innovation Fund | 622.1988 | 2.35 |
| Union Innovation & Opportunities Fund | 654.1077 | 2.29 |
| Nippon India Innovation Fund | 1560.728 | 2.07 |
Who Manages the Scheme?
Prasad Padala joined SBIFML in September 2017 as an Equity Research Analyst. He has an overall 15 years of experience. He worked for the past 11 years in the area of financial services and 4 years before that in the software industry.
Before this role as a fund manager, Prasad worked as an equity analyst at SBIFML from September 2017 to August 2023 and as an external consultant from August 2023 to February 2024 handling equity research.
Pradeep Kesavan, Fund Manager for managing investments in Foreign Securities. Pradeep Kesavan joined SBIFML in July 2021. He has over 18 years of experience in the financial services sector.
Conclusion
SBI Innovative Opportunities Fund targets high-growth sectors, leveraging India’s thriving innovation ecosystem and government initiatives to drive long-term capital appreciation. This makes it an attractive option for growth-focused investors.
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