SBI Mutual Fund Taps Into Innovation Theme With New Fund

With the start of an open-ended equity scheme following the innovation theme, the State Bank of India (SBI) is eyeing to provide investors with opportunities for long-term capital appreciation by investing in equity and equity-related instruments of companies that seek to benefit from the adoption of innovative strategies.

In SBI Mutual Fund, the company in a press release said that there can be no assurance that the investment objective of the scheme will be realised. The fund’s benchmark would be the Nifty 500 TRI.

Shamsher Singh, Managing Director and Chief Executive Officer, SBI Funds Management said, “Today our country is amongst the fastest growing economies in the world and innovation remains a central piece for a Viksit Bharat. The Government through initiatives like Start up India, the Atal Innovation Mission and India stack is aiming to create a culture of innovation from school to industry."

D P Singh, Deputy MD and Joint CEO, SBI Funds Management said, “We have seen disruptions across sectors like automobiles, financial services, energy, media and entertainment, technology, healthcare, ecommerce and industrials due to innovation. The collaboration between a proactive government and the private sector has fostered new startups which are built on innovation.”

The fund would predominantly invest 80 to 100 per cent of its assets in equity and equity-related instruments of companies that seek to benefit from adoption of innovative strategies and theme (including equity derivatives), with the balance assets of  0 to 20 per cent in equity and equity-related instruments of companies other than above (including equity derivatives), 0 to  20 per cent in debt and bebt-related instruments (including securitized debt {upto 20 per cent of the debt portion of the scheme} & debt derivatives) and money market instruments including tri-party repos and 0 to 10 per cent in Units issued by REITs and InvITs, with the exposure in line with Sebit limits specified from time to time. 

The fund may seek investment opportunities in foreign securities including ADR/GDR/foreign equity, overseas ETFs and debt Securities subject to regulations. Such investment may not exceed 35 per cent of the net assets of the scheme and will be in line with the maximum limits available from time to time.