SBI Energy Opportunities Fund Direct Growth

SBI Energy Opportunities Fund - Direct Growth is a thematic mutual fund that was launched on 26 February 2024. The fund invests 80% of its assets in equity and equity-related instruments of the energy sector. The fund manager invests directly or indirectly in traditional and new energy sectors.

Traditional energy includes crude oil, natural gas, coal, oil equipment services, power transmission, etc. The fund has the liberty to invest the remaining 20% of its assets in companies other than those in the energy sector, debt instruments, REITs, and InvITs. 

Investment Strategy

SBI Energy Opportunities Fund employs a research-driven approach to tap into India’s evolving energy landscape. Mr. Raj Gandhi, the fund manager for SBI Energy Opportunities Fund, follows an innovation-led method where they conduct in-depth research and pick companies that have the potential for high future growth. The result is a dynamic portfolio, actively managed across large-cap, mid-cap, and small-cap segments to balance stability with growth potential.

Taxation On SBI Energy Opportunities Fund

Tax on your gains from the SBI Energy Opportunities Fund depends on how long you have held the fund for. All equity mutual funds sold within 12 months are considered Short-term Capital Gain (STCG), and investments sold after 12 months are considered Long-term Capital Gain (LTCG). The taxes are as follows:

• Long-term Capital Gain: Exemption of up to ₹1,25,000 and then 12.5%
• Short-term Capital Gain: 20% 

Who Invests in SBI Energy Opportunities Fund? 

SBI Energy Opportunities Fund is a suitable option for investors who want to benefit from India’s growing energy sector and believe in the global shift towards energy-focused resources. However, thematic mutual funds tend to be volatile and may experience short-term fluctuations due to economic cycles. This fund is best suited for investors with a high-risk appetite and a long-term investment horizon.

Allocation & Historical Returns

Currently, the fund's portfolio comprises 22.0% small-cap stocks, 49.12% large-cap stocks, and 25.31% mid-cap stocks.

With an AUM of ₹10305.0 crores, SBI Energy Opportunities Fund Direct Growth generated a return of -3.2% in 1 year. while its benchmark index (Nifty 500) generated 5.5% in 1 year, 15.6% in 3 years, and 23.7% in 5 years.