SBI MF launches Innovative Opportunities fund: Key details about the NFO

SBI Mutual Fund on Monday launched an innovation thematic open-ended equity fund, called SBI Innovative Opportunities Fund. The New Fund Offer opens on Monday, July 29, 2024, and closes on Monday, August 12, 2024 and the Nifty 500 TRI will serve as the fund's benchmark.

The fund would predominantly invest in

• 80%-100% of its assets in Equity and Equity-related instruments of companies that seek to benefit from adoption of innovative strategies & theme (including equity derivatives), with the balance assets as per the following allocation
• 20% in Equity and Equity-related instruments of companies other than above (including equity derivatives) 
• 0 – 20% in Debt and Debt-related instruments (including securitized debt {upto 20% of the debt portion of the scheme} & debt derivatives) and money market instruments including tri-party repos 
• 0 – 10% in Units issued by REITs and InvITs, with the exposure in line with SEBI limits specified from time to time. 
• The fund may seek investment opportunities in foreign securities including ADR/GDR/Foreign Equity, Overseas ETFs and Debt Securities subject to regulations. Such investment may not exceed 35% of the net assets of the scheme and will be in line with the maximum limits available from time to time. 

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 the adoption of innovative strategies & theme.  However, there can be no assurance that the investment objective of the Scheme will be realized. 

 

"Today our country is amongst the fastest growing economies in the world and innovation remains a central piece for a Viksit Bharat. The Government through initiatives like Start up India, the Atal Innovation Mission and India stack is aiming to create a culture of innovation from school to industry. A thriving startup and funding ecosystem, strong digital infrastructure along with a large consumer market provide favourable tailwinds for our country to become the next big leader on the innovation horizon. The SBI Innovative Opportunities Fund is a good opportunity for investors who would like to invest in companies which are innovating to gain a competitive edge and changing the way we do things to enhance value in their offerings," said  Shamsher Singh, Managing Director & Chief Executive Officer, SBI Funds Management Limited, said,

 The Fund Managers for the SBI Innovative Opportunities Fund would be  Prasad Padala and Pradeep Kesavan (dedicated fund manager for overseas securities).

With a strong focus on innovation and a diversified investment approach, the SBI Innovative Opportunities Fund aims to deliver attractive returns to investors while participating in the growth story of India's startup ecosystem.

 “We have seen disruptions across sectors like Automobiles, Financial Services, Energy, Media & Entertainment, Technology, Healthcare, E-commerce and Industrials due to innovation. The collaboration between a proactive government and the private sector has fostered new startups which are built on innovation. I believe our country is rightly positioned as a global leader in tech adoption and digital transformation. The SBI Innovative Opportunities Fund provides an opportunity for investors to benefit from a strong innovation theme which is set to define next-gen India," said  D P Singh, Deputy MD & Joint CEO, SBI Funds Management.

Other details: 

• Exit Load 1.0%
• Exit Load Details 1.0% of sell value, if sold before 365 days.
• Entry Load NIL
• Stamp Duty As per SEBI, 0.005% stamp duty will be levied on purchase of mutual funds, including lump sum, SIP, STP, and dividend reinvestment

Investment Strategy

• Companies that develop new products or services or significantly invest in R&D for new innovations. They challenge existing markets or create entirely new categories. 
• Companies that innovate new processes, potentially disrupting existing business models and gaining market share through technological and process advancements. 
• Incumbent companies that adapt to innovative business models, products, or services within their industry, showing agility in response to emergent trends.
• These adaptive innovators may not necessarily overhaul their entire business model but exhibit innovative strategies in specific segments or verticals that has potential to meaningfully impact the business.