SBI Mutual Fund's Innovative Opportunities Fund- NFO: NAV

SBI Innovative Opportunities Fund - NFO Complete Overview

The SBI Innovative Opportunities Fund by SBI Mutual Fund under its AMC, SBI Funds Management Limited having an AUM of Rs.10 lac+ crore as of 30 June 2024 is an open-ended equity scheme following the innovation theme that was introduced on July 29, 2024. The Scheme seeks to give returns that generate long-term financial growth by funding innovative companies. The investment window of the NFO is open from July 29 to August 12, 2024, on Nifty 500 TRI with a starting price of Rs.5000 and in multiple of Rs.1 thereafter.

The Scheme focuses on India’s startup ecosystem, digital infrastructure, and Government initiatives, offering the potential for significant growth in sectors like e-commerce and fintech.

The scheme will invest 80-100% of its units in equities & equity related securities of large-cap companies, 0-20% in Securities linked to equities that are not from large-cap firms, as well as securities connected to the equity that is from overseas companies, 0 to 20% in debt and money market instruments, and 0 to 10% Units issued by REITs & InvITs. The scheme is suitable for investors who want to achieve Long-Term Capital Appreciation and seek to invest in equity and equity-related instruments of businesses using innovation themes and/or expect to get benefits from them. The scheme is a very high-risk scheme. There is no assurance that the scheme's investment goal will be met. 

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Fund Overview

The SBI Innovative Opportunities Fund-NFO has set the minimum subscription amount at Rs.5000 and any amount thereafter with the stamp duty of 0.005% (From July 1st, 2020).

Start Date	29 July 2024
End Date	12 August 2024
Allotment Date / Subscription Date	Within 5 business days after the end date of the NFO.
VRO Rating	-
Expense Ratio	Nil
Exit Load	1% if redeemed within 12 months and Nil after 1 year.
AUM	Rs.10 lac+ crore
Lock-In	NA
Stamp Duty	0.005% (From July 1st 2020)
Benchmark	Nifty 500 TRI
Min. Investment	Rs.5000
Risk	Very High
Short-Term Capital Gains (STCG)	For less than 1 year, a 20% Tax is applicable.
Long-Term Capital Gains (LTCG)	For more than 1 year, a 12.50% Tax is applicable above the gain of Rs.1.25 lac.

 

How To Invest In The NFO After The Closure Date?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then within 5 business days after the closure date of the NFO; you can participate directly in the Latest Mutual Fund by spending at NAV based price; by logging on to your Demat Account or directly with the AMC and search for “SBI Innovative Opportunities Fund” or simply touch the “Banner” below.

 

 

The Objective of The Fund

The Scheme seeks to provide returns that generate long-term financial growth by funding innovative companies. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset Allocation (% Of Net Assets) Of The Scheme's Portfolio Will Be As Follows:

Types of Instruments	Minimum Allocation (% of Net Assets)	Maximum Allocation (% of Net Assets)
Equities & equity-related securities of large-cap companies.	80	100
Securities linked to equities that are not from large-cap firms, as well as securities connected to equity that is from overseas companies	0	20
Debt And Money Market Instruments	0	20
Units issued by REITs & InvITs	0	10

 

Peers of SBI Innovative Opportunities Fund

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

Since this scheme is a new scheme, hence no comparable data of its past performance against its peers is available.

 

Risk Factors In Such Funds

• Foreign securities, including foreign stocks, may be purchased by the Scheme. These kinds of investments come with risks, including those associated with changes in foreign currency rates, the country's securities market, capital repatriation because of exchange regulations, and political situations.

• The segregated portfolio's securities may or may not completely or partially regain their investment value.

• The nature of equity and equity-related securities is volatile, and their prices might change every day. Numerous micro and macroeconomic factors influencing the securities markets are to blame for the volatility in the value of stock and equity-related products. This might negatively affect certain stocks or the industry, which would then affect the scheme's net asset value.

• The scheme's success will be directly impacted by the NIFTY 500 TRI performance. Therefore, the scheme will be affected by any changes in composition caused by changes in weightage or stock selection.

 

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Past Performance Of Equity / Thematic Funds

Index Funds	NAV (Rs.)	Annualized Returns (%)	Return / Risk
ICICI Prudential India Opportunities Fund - Growth	34.22	43.4	Very High
UTI Healthcare Fund-Direct Plan-Growth	293.16	48.26	Very High
Nippon India US Equity Opportunities Fund-Direct Plan-Growth	34.18	20.06	Very High

 

SBI Innovative Opportunities Fund NFO-Who Can Invest?

This Fund is ideal for those who want to achieve Long-Term Capital Appreciation and seek to invest in equity and equity-related instruments of businesses using innovation themes and/or expect to get benefits from them.

 

SBI Innovative Opportunities Fund NFO-Growth Fund Managers

• Mr. Prasad Padala 

• Mr. Pradeep Kesavan

 

Conclusion

The scheme is from the largest Mutual Fund Organistaion in India. Investors looking to diversify their portfolios through investments to attain long-term capital appreciation and seek to invest in equity and equity-related instruments of businesses using innovation themes. The scheme is a new one and no past performance data is available. Always assess your Financial Goals, Risk tolerance, time horizon, etc. before making an investment decision. 

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.