SBI Energy Opportunity Fund: An Overview of SBI AMC's Sectoral/Thematic Fund
SBI Energy Opportunity Fund: An Overview
SBI Energy Opportunity Fund, managed by SBI Asset Management Company (SBI AMC), is a sectoral/thematic fund that offers investors the opportunity to participate in the energy sector. This open-ended fund provides growth and income distribution options through its Direct Plan and Regular Plan.
Investment Details
The SBI Energy Opportunity Fund primarily invests in equity securities related to the energy sector. As a sectoral/thematic fund, it focuses on companies operating in the energy industry, including oil, gas, renewable energy, and related sectors. The fund's objective is to generate long-term capital appreciation by capitalizing on the growth potential of the energy sector.
Fund Manager
The SBI Energy Opportunity Fund is managed by two experienced fund managers:
Raj Gandhi: With a CFA qualification and 14 years of experience, Raj Gandhi brings expertise in managing equity funds and analyzing energy sector investments.
Pradeep Kesavan: While Pradeep Kesavan does not have a specified qualification, he has significant experience in managing funds. His expertise complements the overall management of the SBI Energy Opportunity Fund.
Investment Details
The SBI Energy Opportunity Fund offers both growth and income distribution options. It has no entry load, allowing investors to start investing without any additional charges. The exit load for this fund is 0.01%, which is applicable if units are redeemed within a specific time period.
Investment Options
Investors can choose between two investment plans:
Direct Plan: This plan is suitable for investors who prefer to invest directly with the fund house. It offers a higher return potential due to lower expense ratios.
Regular Plan: Investors who prefer to invest through intermediaries, such as distributors or brokers, can opt for the Regular Plan. The expense ratio is slightly higher compared to the Direct Plan.
Minimum Investment
The SBI Energy Opportunity Fund allows investors to start investing with a minimum lump sum investment of ₹ 5000. For those who prefer Systematic Investment Plans (SIPs), the minimum investment amount is ₹ 500.
Important Dates
The SBI Energy Opportunity Fund will be open for subscription from 06-Feb-2024 to 20-Feb-2024. The allotment of units will take place on 20-Feb-2024.
Risk Profile
Investing in the SBI Energy Opportunity Fund involves a high level of risk due to its focus on the energy sector. The performance of the fund is subject to market conditions, sectoral risks, and the individual performance of the companies within the energy sector.
Conclusion
The SBI Energy Opportunity Fund offers investors the chance to participate in the growth potential of the energy sector. With experienced fund managers and investment options that suit different investor preferences, this fund provides an avenue to capitalize on the opportunities within the energy industry. However, investors should carefully consider their risk appetite and investment goals before investing in this sectoral/thematic fund.