Published: 05th Aug 2024
By: Value Research
SBI Mutual Fund has introduced its latest fund offering, the SBI Innovative Opportunities Fund. It is the third sectoral and thematic fund launched by the fund house. The NFO (new fund offer) opened for subscription on July 29, 2024, and will remain available until August 12, 2024.
NFO period July 29 to August 12, 2024 Benchmark Nifty 500 TRI Fund manager(s) Prasad Padala and Pradeep Kesavan Exit load 1 per cent of the applicable NAV if the units are redeemed within one year from the date of allotment. Nil thereafter. Tax treatment If units are sold within a year, capital gains will be taxed at 20 per cent. If units are sold after one year, capital gains are taxed at 12.5 per cent. However, gains of up to Rs 1.25 lakh are tax-exempt.
The fund aims to invest in companies at the forefront of innovation. Further, it will have a portfolio of about 35-40 stocks with a bottom-up selection framework. The fund can also invest up to 35% of its net assets in international stocks, subject to SEBI’s regulations.
How have other innovation-based funds fared since launch?
None of the innovation funds launched so far have a long-term track record. Even a glance at their short-term performance has been underwhelming. Only ICICI Prudential Innovation Fund stands as the exception, outperforming its benchmark, the Nifty 500 TRI’s 39.28%.
The fund will be jointly managed by Prasad Padala and Pradeep Kesavan.
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