SBI Mutual Fund recently launched its latest NFO – the SBI Automotive Opportunities Fund. It will be the first active fund to invest in the automotive sector.
The fund will be benchmarked against the Nifty Auto Total Return Index (TRI), which gave an impressive 71.7% return last year, compared to Nifty 50 TRI’s 26.5% in the same period.
The fund will have a concentrated portfolio of 25-30 stocks. Further, it can invest up to 35% of its net assets in overseas companies, subject to RBI’s restrictions.
Tanmaya Desai and Pradeep Kesavan will jointly manage the fund. While Desai will handle its domestic allocation, Kesavan will manage the overseas investments.
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