India is one of the fast-growing economies in the world. The startup ecosystem, government initiatives for startup growth, the development of digital infrastructure, and increasing consumer market are key factors that make India a favorable place for various innovations.
Disruptions across various sectors like finance, energy, technology, health care etc., is all due to Innovations. Hence Innovation is like a whirlwind, that transforms industries and revolutionize almost every sector. It help businesses expand their boundaries and demands them to adapt and evolve continuously to remain competitive in the market.
Innovation allows companies to stay ahead of the curve. Hence by investing in sectors where innovation is a driving force helps investors to tap into exciting growth opportunities and ride the wave of future success.
SBI Mutual Fund has introduced a New Fund Offering with an innovative theme called the “SBI Innovative Opportunities Fund”. This NFO fund targets high growth sectors that are driven by innovation and government initiatives to provide long term capital appreciation to its investors.
Let’s dive into the blog to learn more about this unique fund and assess whether it’s a suitable choice for you.
Details of SBI Innovative Opportunities Fund
SBI Innovative Opportunities Fund is an open ended sectoral or thematic equity fund launched by SBI Mutual Fund AMC which is one of the largest fund house in India.
The fund considers NIFTY 500 TRI as its benchmark index.
Investment Objective of fund
“The investment objective of the scheme is to provide opportunities for long-term capital appreciation by investing in equity and equity related instruments of companies that seeks to benefit from adoption of innovative strategies & theme.”
Let’s have a quick glance at the basic details of the Fund:
Investment strategy and portfolio construction
The SBI Innovative Opportunities Fund targets India’s innovative startups and digital infrastructure that has promising future growth. It primarily focuses on sectors such as e-commerce, fintech, and other areas that have significant growth potential.
The fund aims to invest 80-100% of its assets in equities of the companies that focus majorly on Innovation. 0-20% of its funds to equities of companies other than companies focus on innovation and remaining funds is allocated to other instruments like debt, REITs etc.
In the overall investments, foreign securities constitute up to 35%.
Navigating the risks and returns of fund
As the fund aims to allocate a major portion to equities, it is associated with very high risk. However, these funds also have the potential to deliver higher returns if invested in the long term.
Meet the Fund Management team
The fund is expertly managed by two seasoned professionals, Mr. Prasad Padala and Mr. Pradeep Kesavan, who bring a wealth of experience to the table.
Mr. Prasad Padala has been a key player at SBI Mutual Funds since 2017, with a remarkable 15 years in the financial industry. Before joining SBI, he accumulated 11 years of experience in financial services and 4 years in the software industry, offering a diverse and rich background.
Mr. Pradeep Kesavan serves as the fund’s overseas manager, boasting 18 years of experience in the financial services sector. His global perspective and extensive expertise add a valuable dimension to the fund’s management.
Who should invest in this NFO?
The SBI Innovative Opportunities Fund is ideal for investors looking to create long-term wealth through equity investments, particularly those interested in innovative sectors.
It suits investors with a higher risk appetite who are prepared to invest for more than 5 years and are willing to accept moderate losses in pursuit of higher returns.
It is advisable for investors to assess their risk profile or consult a financial advisor to select funds that align with their financial goals.
