SBI Mutual Fund launches automotive-focused thematic fund | Will it beat Nifty Auto’s 266% rise in 10 yrs?
India’s biggest asset management company SBI Mutual Fund has announced the launch of its new thematic fund – SBI Automotive Opportunities Fund.
The new fund offer, an open-ended equity scheme following automotive and allied business activities theme, will open on May 17 and close on May 31, 2024.
SBI Automotive Opportunities Fund is benchmarked against the Nifty Auto TRI – which has seen a whopping 266% rise in 10 years and 183% in 5 years.
“The investment objective would be to generate long-term capital appreciation to unit holders from a portfolio that is invested in equity and equity related instruments of companies engaged in automotive and allied business activities from the domestic as well as global universe,” SBI Mutual Fund said in a statement.
“However, there can be no assurance that the investment objective of the Scheme will be realized. The fund would be benchmarked to the Nifty Auto TRI,” it added.
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The fund would predominantly invest 80-100% of its assets in equity and equity-related instruments of companies engaged in automotive and allied business activities theme (including equity derivatives), with the balance assets as per the following allocation: (a) 0–20% in equity and equity-related instruments of companies other than above (including equity derivatives) (b) 0–20% in debt and debt-related instruments (including securitized debt {upto 20%} and debt derivatives) and money market instruments including tri-party repos © 0–10% in units issued by REITs and InvITs, with the exposure in line with SEBI limits specified from time to time.
The fund may seek investment opportunities in foreign securities including
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