SBI Mutual Fund launched this fund on February 6, 2024. It will remain open for subscription until February 20, 2024.
07-Feb-2024 •Chirag Madia
SBI Mutual Fund , the country's largest mutual fund, with assets of around Rs 8.5 lakh crore, is coming out with its latest offering, the SBI Energy Opportunities Fund. The fund opened for subscription on February 6, 2024 and will carry on until February 20, 2024.
|SBI Energy Opportunities Fund
|February 6, 2024 to February 20, 2024
|The fund will look to benefit from the growth in traditional and new energy sectors and allied business activities.
|Nifty Energy TRI
|Raj Gandhi and Pradeep Kesavan (Overseas securities)
|1 per cent (of applicable NAV) if units are redeemed or switched-out wiithin 1 year from the date of allotment. Nil thereafter.
|Same as any other equity fund. If units are sold after one year: Gains beyond Rs 1 lakh are taxed at 10 per cent. (However gains up to 1 lakh in a financial year is tax exempt). If units are sold within one year: 15 per cent
Date as on Dec 29, 2023
Source: Investor presentation of the scheme
Raj Gandhi will be in charge of managing the domestic allocation, and Pradeep Kesavan will be in charge of managing foreign securities.
Raj Gandhi has over 17 years experience in the financial services industry. He joined SBI Funds Management in October 2017 and focuses on tracking commodities and related sectors such as energy and metals (including precious metals). This will be the first fund to be managed by Raj.
Kesavan, meanwhile, joined the fund house in July 2021. He has over 18 years of experience in the financial services sector. Right now, he manages the SBI International Access-US Equity FoF fund.
We have long believed that a retail investor should ideally avoid thematic or sectoral funds like these. They can be extremely risky and volatile.
Instead, opt for diversified equity funds. Flexi-cap funds is one such example.
In fact, flexi-cap funds, on average, have a 7 per cent allocation in energy companies. So, by investing in a flexi-cap fund, you automatically get some exposure to energy companies.
However, if you are too keen and want to ride on the specific theme or sector fund, put only 5-10 per cent of your money in this fund.