In this comprehensive review, discover everything you need to know about the SBI Energy Opportunities Fund NFO, including subscription details valid till 20 February. Get insights into this promising investment opportunity now!
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SBI Energy Opportunities Fund
India is the world’s third-biggest energy consumer. Energy demand is expected to double by 2050. To meet this need, India needs to work towards becoming an exporter rather than an importer of energy. The renewable energy sector will play an important role in this. In such a situation, this sector is looking very attractive in the long term and SBI Mutual Fund has launched a new scheme on the theme of this sector.
Opportunity to invest in NFO till February 20
The NFO of SBI Energy Opportunities Fund is open for subscription on February 6 and there is a chance to invest in it till February 20. The unit will be allotted on February 26 and will be open to all investors. This is an open-ended scheme. It is a sectoral fund that considers Nifty Energy TRI as a benchmark. One can invest a minimum of Rs 5000 and in multiples of Rs 1 thereafter. It is targeted at investors looking for long-term capital appreciation. There will be an exit load of 1% on exiting within one year from the unit allotment date. There will be no exit load when exiting after 1 year.
Where will the money be invested?
The fund’s money will be invested in stocks that operate in the energy segment – exploration, production, distribution, transportation, processing and new energy. This is an energy theme, but its money will not be invested only in companies in the oil and gas, utilities and power sectors. This theme is not limited sector based.
Why should you invest in SBI Energy Opportunities Fund?
The Indian economy is growing rapidly. With this, the demand for electricity has also increased. The government has a big plan for green energy and this sector is flourishing. The global market is focusing on “China + 1” for clean energy sources and India will be a big beneficiary. The government wants to make India a manufacturing hub and many big efforts are being made in this direction. India is moving towards renewable energy. In such a situation, there is a huge potential for other sources of energy including solar power, wind power, hydro power.
What will the fund’s portfolio look like?
The portfolio of SBI Energy Opportunities Fund will be a mix of traditional sources of energy and new energy sources. On the one hand, investments will be made in companies working in the oil, natural gas, coal, nuclear sector. On the other hand, the balance will be created by investing in different companies of new energy sources such as solar, wind, hydro power.
Learn about the fund managers
The fund will be managed by Mr Raj Gandhi and Mr Pradeep Kesavan (Overseas Securities). Raj Gandhi is 41 years old. These are CFAs and have 14 years of experience. He has been associated with SBI MF since October 2017. Pradeep Keshavan is 44 years old and has done MBA, CFA. He has 18 years of experience in the financial sector. He has been associated with SBI Mutual Fund since July 2021.
Conclusion
SBI Energy Opportunities Fund NFO presents an exciting opportunity for investors to participate in the growth potential of the energy sector. With a well-defined investment objective, experienced fund management, and accessible subscription terms, the fund offers a compelling proposition for investors seeking exposure to this dynamic industry.
FAQs (Frequently Asked Questions)
- Is SBI Energy Opportunities Fund suitable for all investors?
- While SBI Energy Opportunities Fund offers growth potential, investors should assess their risk tolerance and investment objectives before investing.
- What is the lock-in period for investments in SBI Energy Opportunities Fund?
- There is no lock-in period for investments in SBI Energy Opportunities Fund. Investors can redeem their units as per the fund’s redemption terms.
- Can NRIs (Non-Resident Indians) invest in SBI Energy Opportunities Fund?
- Yes, NRIs are eligible to invest in SBI Energy Opportunities Fund, subject to compliance with regulatory requirements.
- What are the tax implications of investing in SBI Energy Opportunities Fund?
- Tax implications may vary based on the investor’s profile and prevailing tax laws. Investors are advised to consult with a tax advisor for personalized advice.
- How often does SBI Energy Opportunities Fund disclose its NAV (Net Asset Value)?
- SBI Energy Opportunities Fund discloses its NAV on a daily basis, allowing investors to monitor their investments’ performance.