SBI Mutual Fund recently announced the launch of a thematic mutual fund i.e., SBI Innovative Opportunities Fund, which opened for public subscription on July 29, and will close on August 12, 2024.
The key investing strategy of this scheme is to invest in a set of companies which significantly invest in R&D for new innovations, or those that innovate new processes, or which adapt to innovative business models within their own industry, and exhibit innovative strategies in specific segments that have potential to impact the business.
What kind of mutual fund scheme is this?
It is an open-ended equity scheme which falls under the category of ‘thematic fund’ and will invest in the theme of innovative opportunities.
What is the main objective of investing in this fund?
The investment objective of the scheme is to provide investors with 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 & themes. However, there is no assurance that the investment objective of the scheme will be achieved.
How may one invest in this scheme?
Investors can invest a minimum of ₹5,000 and in multiples of Re 1 thereafter. Those who want to invest via systematic investment plan (SIPs) can do so by investing a minimum of ₹500 and in multiples of Re 1.
Are there similar mutual funds in the market?
Union Mutual Fund runs a mutual fund scheme in this category i.e., Union Innovation & Opportunities Fund.
How will the scheme benchmark its performance?
The benchmark of this scheme is Nifty 500 TRI. The composition of this benchmark is such that it is most appropriate for comparing performance of the scheme.
Are there any entry or exit loads to this scheme?
As per existing Regulations, no entry load is charged with respect to applications for purchase / additional purchase of mutual funds units. The exit load of the scheme is 1 percent of the applicable NAV – when units purchased or switched in from another scheme of the fund are redeemed or switched out on or before one year from the date of allotment.
Who will manage this scheme?
Prasad Padala is the scheme’s fund manager.
Does the fund contain any inherent risk?
As per the scheme’s risk-o-metre, the scheme carries very high risk and is, therefore, suitable for investors who are seeking long term capital appreciation.
For more details, one can visit this link.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.
