"Analyzing India's Largest Mutual Fund House's Innovative Opportunities Fund: Is It a Smart Investment?"
- revanth chalamala
- Jul 31, 2024
- 2 min read
Innovation is the heartbeat of human progress, redefining our world at every turn.
The transition from old-fashioned computers to advanced AI, from traditional landlines to multifunctional smartphones, from low-quality film to high-definition digital cameras, and from cassettes to smooth streaming demonstrates a clear shift from basic to groundbreaking innovations.
Innovation – A key disruptor across sectors
Innovation is a potent force that disrupts industries in every sector, prompting businesses to challenge the existing norms and constantly adjust to remain competitive. Engaging in sectors driven by innovation can offer investors the chance to capitalize on potential growth opportunities within them.
Investment Strategy
Product / Service Innovators
Businesses that create new products or services or make substantial investments in research and development for innovative advancements. They either disrupt current markets or establish entirely new sectors.
Process Innovators
Businesses that introduce innovative processes have the potential to disrupt current business models and increase their market share by leveraging technological and process improvements.
Innovation Adaptors
Established companies that embrace innovative business models, products, or services within their sector, demonstrating flexibility in adapting to emerging trends.
These adaptable innovators may not completely revamp their business model, but they implement innovative approaches in particular areas or sectors that could significantly benefit the business.
Scheme Name | SBI Innovative Opportunities Fund |
Type of Scheme | An open-ended equity scheme following innovation theme. |
Investment Objective | 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 & theme. However, there is no assurance that the investment objective of the scheme will be achieved. |
Plans & Options | Regular & Direct Plan ; Both plans provide two options – Growth Option and Income Distribution cum capital withdrawal (IDCW) Option |
Application Amount | Minimum Investment Amount : Rs. 5000/- and in multiples of ₹ 1 thereafter. Additional Purchase Amount: Rs. 1000/- and in multiples of ₹ 1 thereafter. Minimum Monthly SIP Amount: Rs. 500/- and in multiples of Re. 1 thereafter. |
Fund Manager | Mr. Prasad Padala Mr. Pradeep Kesavan is the dedicated fund manager for overseas securities |
Benchmark | NIFTY 500 TRI |
Exit Load | For Ongoing basis: 1% of the applicable NAV - If units purchased or switched in from another scheme of the fund are redeemed or switched out on or before 1 year from the date of allotment. NIL - If units purchased or switched in from another scheme of the fund are redeemed or switched out after 1 year from the date of allotment. |
NFO Open Date | July 29, 2024 |
NFO Close Date | August 12, 2024 |
Allotment Date | August 20, 2024 |
The SBI Innovative Opportunities Fund has been launched by SBI Mutual Fund, the largest mutual fund house in India. This new open-ended equity scheme is focused on investing in companies that utilize innovative strategies and themes.
While the fund aims for long-term capital appreciation, there is no assurance of achieving this objective.
The Nifty 500 TRI serves as the benchmark for this fund.
The New Fund Offer (NFO) period for the SBI Innovative Opportunities Fund is open until August 12, 2024.
Shamsher Singh, Managing Director & CEO of SBI Funds Management, highlighted India's status as a rapidly growing economy where innovation plays a central role in development.
He pointed out government initiatives such as Startup India and the Atal Innovation Mission as crucial drivers of the innovation culture.
Singh stressed that the fund offers investors an opportunity to support companies that leverage innovation for a competitive advantage.
The fund intends to invest 80-100% of its assets in equity and equity-related instruments of companies that emphasize innovation. Additionally, it will allocate 0-20% in equity and equity-related instruments of other companies, 0-20% in debt and money market instruments, and 0-10% in REITs and InvITs. Foreign securities may account for up to 35% of the net assets. The SBI Innovative Opportunities Fund is managed by Prasad Padala and Pradeep Kesavan, who will oversee overseas securities. Prospective investors in the fund are encouraged to consider participating before the NFO period closes on August 12, 2024. Deputy MD & Joint CEO of SBI Funds Management, D P Singh, highlighted the disruptive impact of innovation in various sectors such as technology, healthcare, and e-commerce. He expressed confidence in India's potential as a global leader in technology adoption and digital transformation. Singh views the SBI Innovative Opportunities Fund as an opportunity for investors to benefit from this innovation-led growth.
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