Review of SBI Energy Opportunity Fund 2024
Introduction
India is on the rise to becoming a major player in the global energy market.
We have a natural advantage of green energy which allows us to self-produce the resources. Can you imagine, that in the next 30 years, India's overall energy use is predicted to increase by 2.5% each year. This will result in making up 68% of the sector compared to the current 22%.
In this blog article, we'll look at how well the energy sector is doing and the opportunities it presents. We will explore these potentials more closely.
And finally, we will discuss the type of SBI Mutual Fund which will help us build long-term wealth by investing in this sector. This informative guide will help you to understand the performance of this fund. Let us start by reviewing the reasons for selecting this particular Mutual Fund scheme.
Why Choose SBI OPPORTUNITES MUTUAL FUND?
SBI fund house has launched an NFO under its "category sector", referred to as SBI Energy Opportunities Fund. In simple words, this fund is based on the energy theme. It is an open-ended Mutual Fund Scheme engaging in sectors related to power and renewable energy.
Let us breakdown the advantages of investing in these schemes in short:
Professional management
This fund is managed by expert professionals having years of experience in the finance industry. They are the backbones behind the fund’s success.
Diversified portfolio
It allows investing in a different Thematic Sector. This will result in successfully allocating portfolios into a varied asset class.
High returns
The government is focused on encouraging the development of renewable energy. It will lead to the booming of this sector, generating high potential returns.
Flexibility
It means flexible means to invest. This Fund House offers simplified and quick process to buy and sell your investments smoothly.
Long-term wealth creation
This fund scheme has the potential to reach great potential heights. With the rise in this particular sector, long-term investment will lead to earning high profits.
OVERVIEW ANALYSIS
This fund stands out because it's the only one focused entirely on this specific theme. Another reason is that it includes various brands when it comes to different sectors and themes, and it has a good history of effectively managing them.
This fund plans to invest in five areas related to power and energy, as well as low-value chain stocks.
- The oil value chain includes activities such as exploration, refining, chemicals, and equipment.
- The Gas Value Chain comprises activities such as delivering gas in cities and operating LNG ports.
- Electricity Value Chain includes coal, electricity generation, and transmission.
- Power Associated services include organizations that provide energy EPC (Engineering, Purchasing, and Construction) services as well as heavy electrical equipment.
- The Green Energy Value Chain includes several stages of green energy production, such as solar, wind, hydrogen, and batteries.
Time to Talk About Leading Fund Manager
MR Raj Gandhi
MR Raj Gandhi has an overall experience of 17 years in finance. He oversees the management of the domestic allocation of the SBI Mutual Fund. He has been associated with the SBI fund house since October 2017.
MR Pradeep Kesavan
MR Pradeep Kesavan brings 18 years of financial expertise with him. He joined this fund house in July 2021 becoming the in-charge of managing foreign securities.
What is the future of the SBI ENERGY OPPORTUNITY FUND?
As we learned about the theme of this fund, there are multiple growth prospects in this sector. Here are some key highlights that will contribute to the fund’s performance:
- India's energy market is quickly expanding and is predicted to become the second largest by 2050.
- The switch to electric vehicles will boost coal and oil consumption by 6.4% annually until 2050.
- India's natural advance in renewable energy will result in energy self-sufficiency.
- Cash flows may improve due to stable policy and prior insufficient investment in specific energy industries.
- Favourable domestic oil and gas policies attempt to increase production.
- The government aims to increase natural gas's contribution from 6.5% to 15% by 2030.
- The national gas grid has expanded by 40% in the last five years.
- The city gas distribution networks will cover 95% of the population through district bidding.
- Redirecting funds from traditional energy to green energy may increase total value.
- The emphasis on domestic coal production guarantees fuel security.
- Reforms in power transmission and distribution aim to promote efficient growth.
Who should Invest in this Fund Scheme?
Tactical Allocation Seekers
If you want to carefully divide your money across the stock market, including the energy sector, this is an excellent option.
Long-Term Capital Appreciation
If you want to see your money grow drastically over time, particularly in the energy sector, this investment fits the bill.
High-Risk Tolerance
This investment is suitable for people who are willing to take greater chances with their money. The stock market, including the energy industry, can be volatile, with prices rising and falling.
Long-Term Investors
Investors seeking to generate high returns, in the long run, will find this fund scheme appropriate. It uses the compounding technique to build wealth in the long term.
Conclusion
To sum up, in the ever-changing world of finance the SBI Mutual Fund has become a trusted choice among investors. With its diverse range of schemes, the review analysis of the SBI Energy Opportunities Fund has shaped a new direction for investing.
The overview analysis highlighted that the SBI Energy Opportunities Fund plans to invest in five different sectors related to power and energy. This fund house provides an online Systematic Investment Plan (SIP) offering a flexible investment plan. It has invested money in areas like oil, gas, electricity, power-related services, and green energy. Now, why is this exciting? Well, these sectors have a lot of opportunities to grow, which means there's a good chance that the money invested in the fund will also grow. For example, as more electric cars are used, the demand for electricity and batteries (part of the green energy sector) will go up. This will lead to higher returns for investors in these areas. So, this fund is like planting money in different parts of the energy world, hoping each part will grow and make your overall investment bigger over time.
Read More - Best mutual funds for Power & Renewable Energy Sector in 2024
Best Funds
| Top funds | 1M Return | 6M Return | 1Y Return | 3Y Return | 5Y Return |
|
|
|---|---|---|---|---|---|---|---|
| SBI Blue Chip Fund-Regular Plan Growth | 0.68% | 18.27% | 30.07% | 16.3% | 19.37% | Invest | |
| SBI Magnum Midcap Fund - Regular Plan - Growth | 2% | 20.82% | 39.04% | 24.38% | 29.73% | Invest | |
| SBI Equity Hybrid Fund - Regular Plan -Growth | 0.73% | 14.7% | 26.4% | 13.09% | 16.1% | Invest | |
| SBI Energy Opportunities Fund - Regular (G) | 3.38% | 12.11% | 29.74% | 15.46% | 15.95% | Invest | |
| SBI ENERGY OPPORTUNITIES FUND REGULAR PLAN IDCW PAYOUT | 3.38% | 12.11% | 29.74% | 15.46% | 15.95% | Invest |