SBI Automotive Opportunities Fund NFO: What you need to know

About the fund

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.

NFO at a glance

Fund benchmark

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.

How will it invest?

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.

Who are the fund managers?

Tanmaya Desai and Pradeep Kesavan will jointly manage the fund. While Desai will handle its domestic allocation, Kesavan will manage the overseas investments.

Should you invest in this fund when diversified options like flexi-cap funds exist?

Get the answer by clicking the link below.