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The SBI Innovative Opportunities Fund is a thematic,multisector, market cap agnostic fund that aims to cater to investors seeking investments in equity and equity-related instruments for long-term capital appreciation. The fund focuses on companies that are at the forefront of innovation, benefiting from cutting-edge strategies and thematic developments. By targeting these innovative enterprises, the fund aims to capitalise on their potential for growth and market leadership. While the fund is designed to exploit opportunities in innovative sectors, there is no guarantee that it will achieve its investment objectives. Investors considering this fund should evaluate its alignment with their risk appetite and their investment goals.
The fund is available for subscription under New Fund Offering from July 29th 2024 to August 12th 2024
Innovation is a strong disruptor that is changing all industries. It compels the industries to constantly adapt and upgrade with the latest technology.
Why SBI Innovative opportunities fund?
Focus on innovation and growth- Investing in businesses that are at the forefront of innovation and technical breakthroughs is the primary goal of the SBI Innovative Opportunities Fund. This covers Businesses that create new goods or services or make large R&D investments in order to create new innovations.
They put up a challenge against established markets or develop whole new categories.
Diversified Portfolio– The fund invests across a variety of innovative sectors, reducing the risk associated with investing in a single industry. The fund will consist of 30-40 stocks in the portfolio. This diversification helps mitigate sector-specific risks and enhances the stability of returns.
Expert Management- The fund is managed by Mr Prasad Padala who carries a deep understanding of emerging technologies and innovative industries. His expertise ensures careful selection and management of investments.
Capitalising on Innovation: Companies that lead in innovation often experience rapid growth and can deliver high returns. By investing in such companies, the SBI Innovative Opportunities Fund aims to provide investors with the potential for substantial capital gains.
India’s startup ecosystem is the 3rd largest in the world, with around 115 Unicorn startups. The number is expected to double up by 2030.
The innate talent pool, 2.5 million stem graduates will be the backbone of innovation for India.
Government Initiatives for Innovation in India
- Atal Innovation Mission- The Atal Innovation Mission (AIM) is the flagship initiative of the Government of India, aimed at cultivating and advancing a culture of innovation and entrepreneurship nationwide. AIM’s goal is to establish new programs and policies that encourage innovation across various economic sectors, offer platforms and collaborative opportunities for diverse stakeholders, and create a comprehensive framework to oversee the nation’s innovation and entrepreneurship ecosystem.
- Atal Tinkering Labs- 1 cr+ students enrolled
- Atal Incubation Centre- 32000+ jobs created
- 3500+ startups were supported, out of which 1000 were women led.
- Startup India- Startup India launched in 2016, is a key initiative by the Government of India designed to stimulate startup culture and establish a robust, inclusive ecosystem for innovation and entrepreneurship throughout the country.
Key Details of SBI innovative Opportunities Fund
- Asset Management Company– SBI Mutual Fund
- Risk Profile: Very High
- NFO Start Date: 29th July
- NFO End Date: 12th August
- Exit Load: For Ongoing basis: 1% of the applicable NAV – If units purchased or switched in from another scheme of the fund are redeemed or switched out on or before 1 year from the date of allotment.
NIL – If units purchased or switched in from another scheme of the fund are redeemed or switched out after 1 year from the date of allotment. Fund managers: Mr Prasad Padala
Investment Strategy of SBI Innovative Opportunities Fund
- Product/ service innovators: Companies that create new goods or services or make large R&D investments in order to create new ideas. They put up a fight against established markets or develop whole new categories.
- Process Innovators: Businesses that use new process innovation have the ability to upend established business models and increase their market share by utilizing advances in technology and procedures.
- Innovation Adaptors: Establishment firms that demonstrate flexibility in reacting to new trends by embracing newer business strategies, goods, or services in their sector. While these adaptable innovators might not completely change their business strategy, they do show creative thinking in particular markets or industries that could have a significant effect on the company.
Who can invest?
Targeting Emerging Trends and Disruptive Ideas: Ideal for investors looking to capitalise on upcoming trends and disruptive business concepts.
Capital Appreciation and Growth: Appeals to those seeking capital appreciation through investments in forward-looking business ideas.
Suitable for investors aiming for a growth-focused long-term portfolio.
Diversification Across Sectors and Market Caps: Offers diversification by allocating investments across various sectors and market capitalizations.
Provides a unique opportunity to tap into emerging trends and markets.
Benchmark- NIFTY 500 TRI
The Nifty 500 TRI is a vital index for investors seeking a broad-based, diversified benchmark that accurately reflects the total returns of the Indian equity market. By including dividends, it provides a more comprehensive measure of market performance, making it an essential tool for benchmarking, performance evaluation, and informed investment decision-making.
Conclusion
The SBI Innovative Opportunities Fund is an excellent choice for investors seeking long-term capital appreciation through investments in innovative companies. With a focus on sectors at the forefront of technological advancements and strategic developments, the fund aims to leverage the growth potential and market leadership of these enterprises. Managed by Mr. Prasad Padala, the fund offers a diversified portfolio that reduces sector-specific risks and enhances stability.
