SBI Automotive Opportunities Fund - NFO: Opening Date & NAV

If you are looking to invest in a mutual fund, the SBI Automotive Opportunity Fund could be a promising option for you. If you can take on high risk, this fund may offer high returns in the long term. It sounds interesting, doesn’t it? Keep on reading to learn everything about this scheme and make an informed investment decision.

 

SBI Automotive Opportunities Fund - NFO Overview

The SBI Automotive Opportunities Fund is tailored for individuals looking to invest in equity and debt-related instruments to achieve high returns. This scheme aims to invest in a diverse range of industries, market capitalizations, and asset classes. It also includes investing in foreign securities, including foreign equities.

Starting on May 17, 2024 and conclude on May 31, 2024, the fund will invest in a diversified portfolio, including equity and equity-related instruments of companies engaged in automotive and allied business activities, debt and debt-related instruments, and units issued by REITs and InvITs.

 

 

Fund Overview

The SBI Automotive Opportunities Fund -NFO holds an AUM totalling Rs. 9,71,637.57 crores. This fund has a stamp duty of 0.005% (From July 1st 2020). The minimum investment required is an SIP of Rs 500.

Start Date	17 May 2024
End Date	31 May 2024
VRO rating	-
Expense ratio	NA
Exit load	1%, if redeemed within 1 Year.
AUM (Fund size)	Rs. 9,71,637.57 Cr.
Lock-in	No Lockin
Stamp Duty	0.005% (From July 1st 2020)
Benchmark Index (1st Tier)	Nifty Auto TRI
Min. investment	SIP Rs.500
Risk	Very High
Short-term capital gains (STCG)	Returns taxed at 15% if you redeem before 1 year
Long-term capital gains (STCG)	After 1 year, pay a LTCG tax of 10% on returns of Rs.1 lakh+ in a financial year

 

 

The Objective of the Fund

The scheme's investment objective is to generate long-term capital appreciation for unit holders by investing in a portfolio comprised of equity and equity-related instruments of companies engaged in the automotive and allied business activities sector.

Asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows

Types of Instruments	Minimum Allocation (% of Net Assets)	Maximum Allocation (% of Net Assets)	Risk Profile
Equity and equity-related instruments of companies engaged in automotive & allied business activities theme (including equity derivatives)	80	100	Very High
Equity & equity-related instruments of companies other than above (including equity derivatives)	0	20	Very High
Debt & debt related instruments (including securitized debt^ & debt derivatives) and money market instruments including tri-party repos	0	20	Low to Medium
Units issued by REITs and InvITs	0	10	Medium to High

 

 

Peers of SBI Automotive Opportunities Fund - NFO

Equity, Sectoral / Thematic Funds	1Y Return	3Y Return	AUM (Cr)
ICICI Prudential India Opportunities Fund Direct - Growth	49.30%	29.97%	7,33,779.84
Franklin India Opportunities Direct Fund-Growth	77.95%	32.07%	93,600.33
Axis Special Situations Fund Direct - Growth	37.64%	17.77%	2,86,670.00
Sundaram Services Fund Direct - Growth	34.11%	21.41%	59,763.28

 

Risk Factors in Such Funds

• The concentration is likely to be high in sectors belonging to the said theme.

• Equity and Equity related instruments are volatile in nature and are subject to price fluctuations on daily basis.

• The Scheme's inability to purchase intended securities due to settlement issues could cause it to miss certain investment opportunities in specific cases.

• Debt & money market instruments investments under the scheme may also be subject to the credit risk, liquidity risk, interest rate risk, reinvestment risk, etc.

• The Scheme may invest in Foreign Securities including foreign equities, which make it prone to the risks related to fluctuations in the foreign exchange rates.

 

Past Performance of Equity, Sectoral / Thematic Funds

Equity, sectoral / Thematic Funds	NAV (Rs)	Returns since inception	Return/Risk
ICICI Prudential India Opportunities Fund Direct - Growth	32.98	24.79%	Achieved the highest return among thematic funds over the past five years.
Franklin India Opportunities Direct Fund-Growth	247.22	19.18%	Performing Poorly
Axis Special Situations Fund Direct - Growth	17.37	17.54%	Performing Poorly
Sundaram Services Fund Direct - Growth	30.6	21.82%	It produces 20% more returns.

 

 

SBI Automotive Opportunities Fund NFO - Who can invest 

This fund is ideal for individuals who can take on a higher level of risk for the potential of high returns. The fund invests in different industries, market capitalizations, and asset classes to maximize returns. It also aims to invest in foreign securities, including foreign equity. This investment approach leads to a high level of risk and volatility.

 

SBI Automotive Opportunities Fund NFO - Growth Fund Managers:

• Mr. Tanmay Desai

• Mr. Pradeep Kesavan

 

 

Conclusion

The SBI Automotive Opportunities Fund is designed to generate long-term gains for investors by focusing on equity and debt-related instruments in the automotive and allied businesses. This investment strategy makes the fund inherently risky and volatile. Therefore, investors need to evaluate their risk tolerance and investment goals before committing to this fund.

 

Disclaimer: This NFO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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