Investment Objective
SBI Automotive Opportunities Fund seeks to generate long-term capital appreciation for investors from a portfolio of equity and equity related instruments of businesses engaged in the automotive and allied business activities sector.
Investment Strategies
- The scheme invests at least 80% of its portfolio in equity and equity related instruments of companies engaged in the automotive & allied business activities sector. (SID)
- The fund can invest its residual net assets, i.e., up to 20% of its portfolio, in businesses other than the automotive & allied business activities theme. (Page 32 presentation)
- The scheme may also exploit investment opportunities in the overseas markets in the automotive theme, especially in R&D, mega trends and also those companies having no presence in the domestic listed market.
- Within the automotive segment, the scheme focuses on Original Equipment Manufacturers (OEM), auto component manufacturers, companies operating in the electric mobility space and companies in the automotive space having export potential.
- The fund may also invest in electronics and semiconductor companies catering to the automobile industry.
- It aims to maintain a market cap agnostic and concentrated portfolio
- The scheme also uses the following parameters for stock selection:- (Page 36 presentation)
- Growth potential of the companies
- Economic growth trend and levels of penetration of the automotive industry
- Capital allocation strategies of the companies and their return profiles
- Ability of the companies to adapt to the evolving auto landscape
- Brand building capabilities of the companies
- Companies’ cash flows and earnings quality
Who Should Invest
- Investors looking for long term capital appreciation by investing in companies operating or tied to the automotive and allied industries.
- Those seeking to invest in a portfolio of well researched stocks of the automotive sector in domestic and overseas markets.
- Investors seeking to benefit from the growth in the automotive industry in domestic as well as overseas markets.
- Individuals having a higher risk appetite and who are also aware of the higher concentration risk associated with the sector/thematic funds
Frequently Asked Questions
What is the risk level of SBI Automotive Opportunities Fund?
As per the fund factsheet published by the fund house, SBI Automotive Opportunities Fund is considered to carry ‘Very High Risk’ for its investors.
Is there any lock-in period in SBI Automotive Opportunities Fund?
SBI Automotive Opportunities Fund has no lock-in period for its investors. The investors of this fund are free to make redemption requests on any date as per their requirements.
What type of mutual fund is the SBI Automotive Opportunities Fund?
The SBI Automotive Opportunities Fund is an open-ended equity mutual fund scheme following the investment theme of automotive and allied business activities.
Is SBI Automotive Opportunities Fund an open-ended or close-ended scheme?
The SBI Automotive Opportunities Fund is an open-ended equity mutual fund scheme.
What is the benchmark index for SBI Automotive Opportunities Fund?
Nifty Auto TRI is the benchmark index of SBI Automotive Opportunities Fund.