SBI Innovative Opportunities Fund - NFO Complete Overview

Introduction

The SBI Innovative Opportunities Fund  by SBI Mutual Fund, under its AMC SBI Funds Management Limited, has an AUM of ₹10 lakh+ crore as of June 30, 2024. This open-ended equity scheme, introduced on July 29, 2024, follows an innovation theme aimed at generating long-term financial growth by investing in innovative companies. The NFO investment window is open from July 29 to August 12, 2024, with a starting price of ₹5,000 and in multiples of ₹1 thereafter.

Investment Focus

The SBI Innovative Opportunities Fund  targets India's startup ecosystem, digital infrastructure, and government initiatives, offering potential growth in sectors like e-commerce and fintech. It will invest:

- 80-100% in equities and equity-related securities of large-cap companies.

- 0-20% in securities linked to equities not from large-cap firms and securities connected to equity from overseas companies.

- 0-20% in debt and money market instruments.

- 0-10% in units issued by REITs and InvITs.

Suitable Investors

The SBI Mutual Fund is ideal for investors seeking long-term capital appreciation by investing in equity and equity-related instruments of businesses using innovation themes. Note that it is a very high-risk scheme, and there is no assurance that the investment goals will be met.

Fund Overview

- Start Date: July 29, 2024

- End Date: August 12, 2024

- Allotment Date: Within 5 business days after the end date of the NFO

- Expense Ratio: Nil

-Exit Load: 1% if redeemed within 12 months, Nil after 1 year

- AUM: ₹10 lakh+ crore

- Benchmark: Nifty 500 TRI

- Minimum Investment: ₹5,000

- Risk: Very High

- Short-Term Capital Gains (STCG): 20% tax for less than 1 year

- Long-Term Capital Gains (LTCG): 12.5% tax for more than 1 year above gains of ₹1.25 lakh

How to Invest After the NFO Closure

If you missed the SBI NFO, you can invest in the SBI Innovative Opportunities Fund on a continuous basis within 5 business days after the closure by purchasing at the NAV-based price through your Demat account or directly with the AMC.

 Fund Objective

The SBI Innovative Opportunities Fund  aims to provide returns that generate long-term financial growth by funding innovative companies. However, there is no guarantee that the scheme's investment goals will be met.

 Asset Allocation

Types of Instruments | Minimum Allocation (% of Net Assets) | Maximum Allocation (% of Net Assets) |

1 Equities & equity-related securities of large-cap companies | 80%  , 100%                                

2 Securities linked to equities not from large-cap firms and overseas companies | 0%          

      20%   |

 Debt and money market instruments |   0%   | 20%                                  

 Units issued by REITs & InvITs | 0%   | 10%                                 

 Peer Comparison

| Scheme   | 1Y Return (%) | AUM (Cr)  |

|-------------------------------------|---------------|-----------|

| Franklin India Opportunities | 68.14 | 4575.97   |

| ICICI Prudential Innovation Fund | 54.55 | 5721.12   |

| ICICI Prudential India Opportunities| 43.4   | 21021.31  |

 Risk Factors

- Foreign securities come with risks such as currency rate changes, market fluctuations, capital repatriation, and political situations.

- Equity and equity-related securities are volatile, and their prices can fluctuate daily due to various economic factors.

- The scheme's performance will be directly impacted by the NIFTY 500 TRI, and any changes in its composition will affect the scheme.

Fund Managers

- Mr. Prasad Padala

- Mr. Pradeep Kesavan

 Conclusion

The SBI Innovative Opportunities Fund is offered by the largest mutual fund organization in India. It is designed for investors looking to diversify their portfolios and achieve long-term capital appreciation through investments in businesses leveraging innovation themes. As a new scheme, it lacks past performance data, so investors should carefully assess their financial goals, risk tolerance, and investment horizon before investing.

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