The new fund offer opens for subscription on September 11 and closes on September 25.
SBI Mutual Fund today announced the launch of its three year closed end fund called SBI Equity Opportunities Fund – Series I.
The new fund offer opens for subscription on September 11 and closes on September 25.
The fund would invest in a diversified portfolio of equity and equity related securities across market capitalization and sectors. The fund would endeavor to participate in the all-round growth of the Indian economy. The fund manager will identify stocks that would benefit from the growth of the Indian economy, said a press release issued by the company.
To reduce the risk of the portfolio, the scheme may also use various derivative and hedging products from time to time for hedging and rebalancing purposes, in the manner permitted by SEBI.
Dinesh Khara, MD & CEO, SBI Mutual Fund said, “We are happy to introduce an investment solution in SBI Equity Opportunities Fund - Series I which has no bias to any specific segment. However, current opportunities available in the equity market, predominantly lie in the mid & small cap segment. Improving macro-economic indicators, which has already brought cheer to market sentiments, and now promising better economic growth prospects and the stable central government with it’s clearly articulated policy framework and pro-growth approach leading to enhanced economic activity in the country are the twin reasons which would allow HNIs and Investors to benefit from SBI Equity Opportunities Fund Series I.”
Further explaining the rationale for investment in SBI Equity Opportunities Fund Series I, Dinesh said: “The closed ended nature of the fund would allow the fund manager far more flexibility to create a portfolio with long term view and invest into stocks with a three year perspective, especially with potential opportunities arising from structural trends like home improvement, e-commerce, imports substitution & manufacturing exports, defense, and education.’’
Navneet Munot, CIO, SBI Mutual Fund said, “The investment mandate is well placed to take advantage of the emerging opportunities across market cap. A 3-year close-ended fund offers ability to the fund manager to identify the best stock ideas with a long term orientation. Historically, over long term, small and mid-cap investment ideas have provided superior returns compared to large caps, attributable to inefficient price discovery owing to lower analyst coverage and lower activity levels.
Dharmendra Grover will manage this fund.
SBI Mutual Fund manages Rs. 69,213 crore assets under management as on June 2014.
