Investment Objective
The investment objective of the SBI Energy Opportunities Fund is to generate long term capital appreciation by investing in equity and equity related instruments of companies working in exploration, distribution, transportation, production and processing of both traditional & new energy, including but not limited to sectors such as oil & gas, power and utilities.
Investment Strategies
- SBI Energy Opportunities Fund invests at least 80% of its net assets in domestic and/or overseas companies engaged in production, distribution, exploration, transportation and processing of both traditional and new energy, including but not limited to sectors such as utilities, oil & gas, and power.
- The fund will predominantly invest in the following indicative list of sectors:
- Offshore Support Solution Drilling
- Power – Transmission
- Power Generation
- Integrated Power Utilities
- Trading – Gas
- Trading – Coal
- Lubricants
- Oil Equipment & Services
- LPG/CNG/PNG/LNG Supplier
- Refineries & Marketing
- Coal
- Oil Exploration & Production
- Gas Transmission/Marketing
- Oil Storage & Transportation
- Other Utilities
- Power Trading
- The scheme may also invest in domestic and/or overseas companies primarily engaged in energy ancillary businesses, including but not limited to:
- Chemicals & Petrochemicals companies
- Industrial & capital goods companies that are
- engaged in energy consultancy
- manufacturing pipelines used in the energy sector
- manufacturing electrical equipment for production, transmission & distribution of energy,
- companies involved bio energy value chain
- companies making components of new energy
- Ancillary companies in the power transmission & distribution space
- The fund can invest up to 20% of the net assets in companies other than the energy and allied sector universe for portfolio diversification.
- The fund follows a bottom-up approach for stock selection.
- It pursues an active management style to optimise returns and does not have any market cap bias for stock selection.
- The Scheme may use derivatives, both for hedging and non-hedging purposes, in line with its investment objective and overall investment strategy.
Who Should Invest
- Investors having a long term investment horizon and who seek to optimise returns by investing in India’s traditional & new energy sectors and allied business activities. Traditional energy includes sources of energy like crude oil, coal and natural gas, whereas renewable energy sources include solar, hydropower, wind, etc.
- Investors who understand that the thematic nature of the SBI Energy Opportunities Fund involves a higher concentration and theme-specific risks than diversified equity mutual funds.
Frequently Asked Questions
What is the risk level of the SBI Energy Opportunities Fund?
As per the fund factsheet published by the fund house, SBI Energy Opportunities Fund is considered to carry ‘Very High Risk’ for its investors.
Is there any lock-in period in the SBI Energy Opportunities Fund?
SBI Energy Opportunities Fund has no lock-in period for its investors. The investors of SBI Energy Opportunities Fund are free to make redemption requests on any date as per their requirements.
What type of mutual fund is the SBI Energy Opportunities Fund?
SBI Energy Opportunities Fund is an open-ended equity mutual fund scheme belonging to the thematic fund category following the energy theme.
Is the SBI Energy Opportunities Fund open-ended or close-ended?
SBI Energy Opportunities Fund is an open-ended equity mutual fund scheme.
What is the benchmark index for this SBI Energy Opportunities Fund?
Nifty Energy TRI is the benchmark index of the SBI Energy Opportunities Fund. The fund also has the BSE Sensex TRI as its additional benchmark index.