SBI Automotive Opportunities NFO All Details (Allotment Date & more)

SBI Automotive Opportunities NFO Opening & Closing Date, Risks, NAV, Minimum Investment, Allotment Date, Plans Option & more

by Vrushali.S Updated: 17 May, 2024, 19:31 IST
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SBI Mutual Fund has launched a new SBI NFO Offer, the SBI Automotive Opportunities Fund opened on the date 17th May, 2024. The closing date of this new SBI NFO is May 31st, 2024. With only a couple of days left for the SBI Automotive Opportunities Fund to close, we thought it would be the right time to share with you the complete details it so that it gets a bit easier for you to know if you should invest in the SBI Automotive Opportunities Fund or not.

Let’s get to it: SBI Automotive Opportunities NFO Opening & Closing Date, Risks, NAV, Minimum Investment, Allotment Date, Plans Option & more

SBI Automotive Opportunities NFO Opening & Closing Date, Risks, NAV, Minimum Investment, Allotment Date, Plans Option & more



SBI Automotive Opportunities NFO Opens for Subscription on 17th May

The SBI Automotive Opportunities is a new fund offer (NFO) brought to you by SBI Mutual Funds. Similar to the SBI’s previous NFO of SBI Energy Opportunities Fund which garnered a great response from investors, this one is expected to attract a ₹5000 Crore investment. Though whether the new SBI NFO is a hit or miss is something only time will tell.

The new NFO by SBI opened for subscription on 17th May and the fund’s last date to invest is 31st May after which investors won’t be able to purchase units until the fund gets listed on the stock exchange.

On the official SBI Automotive Opportunities NFO page, interested investors can find the comparison data of Nifty 50 TRI (Total Return Index) vs Nifty 500 TRI vs Nifty Auto TRI (the benchmark index of the SBI NFO)

As per the data shared, the CAGR returns of the benchmark index of SBI Automotive Opportunities Fund which is Nifty Auto TRI since its inception is 29X.

Other indexes like Nifty 500 TRI and Nifty 50 TRI have given a return of 17X and 15X only, respectively.

Here’s an image on the same from the official doc to help you the potential of the SBI Automotive Opportunities NFO better:

SBI Automotive Opportunities NFO All Details (Allotment Date & more)



SBI Automotive Opportunities NFO Investment Opportunities: Where Investor’s Money Will be Invested?

Export Opportunities

India’s automotive industry has potential for exports in various segments. Amid rising global manufacturing costs, India can leverage its large domestic market for economies of scale.

Original Equipment Manufacturers

OEMs include two-wheelers, three-wheeler, passenger, commercial vehicles; heavy vehicle manufacturers, and more.

Auto component manufacturers

These include engines; electronic chips; transmission parts; tyres; nuts & bolts etc. They supply to both OEMs and the service providers.

Electric Mobility

Investment opportunities lie in pure-play EV manufacturers or component makers specializing in EV parts like batteries, motors, and control systems.



SBI New Fund Offer (SBI Automotive Opportunities NFO Allotment Date, Plan Options, Minimum Investment & more)

Scheme Name

SBI Automotive Opportunities Fund

Type of Scheme

An open-ended equity scheme following the automotive & allied business activities theme

Investment Objective

Long-term capital appreciation by investing in automotive & allied business activities theme.

Plans & Option

Regular & Direct Plan; Both plans provide two options – Growth Option and Income Distribution cum capital withdrawal (IDCW) Option

Application Amount

Minimum Investment Amount: Rs.5000/- and in multiples of Re. 1 thereafter;

Additional Purchase Amount: Rs.1000/- and in multiples of Re. 1 thereafter;

Minimum SIP Amount: Rs.500/- and in multiples of Re. 1 thereafter;

Fund Manager

Mr. Tanmaya Desai
Mr. Pradeep Kesavan (overseas securities)

Benchmark

Nifty Auto TRI (29X growth since inception)

Exit Load

Exit on or before 1 year from the date of allotment: 1%

For exit after 1 year from the date of allotment: Nil

(subject to change)

NFO Open Date

17th May 2024

NFO Close Date

31st May 2024

Allotment Date

7th June 2024


So these are a few key details about the newly launched SBI NFO, the SBI Automotive Opportunities Fund allotment date, closing date, minimum investment, SIP amount and plan options.

SBI, as it does with almost every other NFO, has released a dedicated video on its official YouTube channel where the Vice-president of SBI Mutual Funds, Ms Sumaira Abidi explained what the new SBI Automotive fund is all about.


In the announcement video, the VP of SBI Mutual Funds said “the two factors that appeal the most to us are the under penetration as well as the affordability factor. When we look at across vehicle categories, the penetration levels are much lower in India versus other geographies and a comparison that we did with countries like China and South Korea indicates that India today is where these countries were just to the hyper-growth phase.”

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SBI Automotive Opportunities Fund NAV

SBI Automotive Opportunities Fund NAV is currently unavailable as the fund is not live yet on the stock exchange. However, as a general rule of thumb, every New Fund Offer gets a NAV (Net Asset Value) of Rs.10 per unit. This is where investing in New Fund Offer (NFO) especially interests investors. For example, the NAV of SBI Energy Opportunities Fund currently is ₹10.61 as of 16th May 2024. That’s a profit of ₹250 on an investment of Rs.5000 (1% exit load included).


SBI Automotive Opportunities New Fund Offer: How to Invest?

To invest in the SBI Automotive Opportunities Fund, interested investors have the option to choose from two types of plans: Regular & Direct.

Both Regular & Direct plans provide two options – Growth Option and Income Distribution cum capital withdrawal (IDCW) Option. The Growth Option in SBI NFO would mean that the profits of the funds would be reinvested for further growth. The 2nd plan type option which is IDCW means investors can receive returns at regular intervals from their investment.

Interested investors can also do a monthly SIP of a minimum ₹500 per month (minimum 12 number of monthly instalments)

SBI Automotive Opportunities Fund official scheme document

Disclaimer: The above is not an investment advice or suggestion. My goal is to only provide some useful additional information that may help you make your decision. You are required to conduct your own research before investing.

So this was all about sharing all the details of the SBI Automotive Opportunities new fund offer that we know so far including its allotment date, closing date, how to invest, minimum investment and more.

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Review Expert
Vrushali is a content & copywriter with 3+ years of exp in writing, researching & ideating content pieces. She writes articles across finance, tech, lifestyle, telecom, online shopping & travel. When not working, you'd find her scribbling designs.
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