SBI mutual fund launches automotive opportunities fund: Key details

SBI Mutual Fund has introduced the SBI Automotive Opportunities Fund, a thematic mutual fund targeting long-term capital appreciation by investing in companies involved in automotive and related sectors. The new fund offer (NFO) began on May 17 and will close on May 31.

Investment Details:

Minimum Investment:

Lumpsum: ₹5,000

Systematic Investment Plan (SIP): ₹500

Investment Universe:

Original equipment manufacturers (OEMs)

Auto component manufacturers

Electric mobility companies

Companies with auto export potential

Semiconductor and electronics companies catering to the auto industry

Fund Objectives and Management:

The SBI Automotive Opportunities Fund aims to achieve long-term capital gains by focusing on equity and equity-related instruments in the automotive and allied sectors. The investment universe comprises 134 companies, primarily in 'auto components & equipment' (85 companies) and 'castings & forgings' (11 companies), as guided by the Association of Mutual Funds in India's (AMFI) industry classification.

Key Features:

Benchmark: The scheme will benchmark its performance against the Nifty Auto TRI.

Exit Load: A 1% exit load applies if units are redeemed or switched out within one year of the allotment date.

Risk Level: The fund's risk-o-meter indicates a very high risk, implying substantial potential risks to the principal investment.

Fund Management:

The scheme will be managed by Tanmaya Desai.

Investors are advised to consult with financial advisors to assess the suitability of this high-risk investment for their portfolios.