The new fund offer or NFO of the scheme will open for subscription on May 17 and it will close on May 31.
The investment objective would be to generate long-term capital appreciation to unit holders from a portfolio that is invested in equity and equity-related instruments of companies engaged in automotive and allied business activities theme from the domestic as well as global universe.
The fund will be benchmarked against Nifty Auto TRI. The scheme will be managed by Tanmaya Desai and Pradeep Kesavan.
“Today India is the world’s 3rd largest automobile market. The Indian Automotive sector presents an attractive opportunity as domestic demand and auto exports have been drivers of growth. Electric mobility and rise of logistics & passenger transportation provide inflection points for the industry. The SBI Automotive Opportunities Fund is a wonderful opportunity for investors who would like to benefit from the growth of the entire automotive ecosystem as this sector is poised to take India to new places,” said Shamsher Singh, Managing Director & Chief Executive Officer, SBI Mutual Fund.
“I am pleased to present the SBI Automotive Opportunities Fund to investors who are keen to add a thematic offering to the satellite portion of their portfolios. The Indian Automotive Industry is running in top gear as our country is a force to be reckoned in terms of production of vehicles and auto exports while our burgeoning domestic market, demands safer and premium vehicles,” said D P Singh, Deputy MD & Joint CEO, SBI Mutual Fund. The fund will invest 80%-100% in equity and equity-related instruments of companies engaged in automotive and allied business activities theme (including equity derivatives), 0 – 20% in equity and equity-related instruments of companies other than engaged in automotive and allied business activities theme (including equity derivatives), 0 – 20% in debt and debt-related instruments (including securitized debt {upto 20%} & 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. He added, “In addition, manufacturing of auto parts and ancillaries contribute to almost 30 percent of the manufacturing ecosystem providing wealth creation opportunities for investors in the long-term. I believe policy reforms and a defined roadmap with the industry provide momentum and an opportunity for investors to benefit from India’s growing automotive ecosystem.”
The fund may seek investment opportunities in foreign securities including ADR/GDR/Foreign equity and debt securities and overseas ETFs 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.
