India’s energy sector is on a trajectory towards self-sufficiency, aligning with the Aatmanirbhar Bharat vision. Positioned as one of the largest and fastest-growing energy markets globally, the country is witnessing a shift from conventional combustion to electrification. Projections indicate a robust 6.4% CAGR in energy consumption, excluding coal and oil, until 2050. With a natural advantage in green energy, India is expected to transition from an energy-deficient state to being energy self-sufficient.
Oil Value Chain]
- Remunerative realization for domestic Oil and Gas along with favorable exploration and production policy to encourage growth in domestic production.
- Elimination of auto fuel subsidy and stability in crude prices have provided Government the necessary backdrop for policy impetus.
Gas Value Chain
- Government intends to increase the share of natural gas from ~6.5% to 15% by 2030. Expansion of national gas grid by 40% over past 5 years through expansion of city gas distribution (CGD) networks covering 95% of the population.
- Unified tariff implemented with principle of One Nation One Grid.
Power Value Chain
- Impetus on domestic coal production to ensure fuel security.
- Reforms in power transmission & distribution to ensure that the ecosystem builds the capacity to facilitate efficient growth.
Source: The green shift – The low carbon transition of India’s Oil & Gas sector report by Ministry of Petroleum and Natural Gas.
Why consider SBI Energy Opportunities Fund?
India’s Economic Growth Fuels Energy Demand – Energy consumption is closely tied to economic growth. As India rises to become the world’s third largest economy, its energy consumption is poised for significant growth. This rising demand creates robust investment opportunities across various energy segments.
Leading the Green Energy Charge – India supports global green energy goals, actively influencing international climate policies. Initiatives like the International Solar Alliance and International Bioenergy Alliance showcase its commitment to a sustainable future.
Capitalizing on the “China+1” Strategy – The global shift towards cleaner energy sources presents immense opportunities. As the solar and hydrogen value chains currently dominated by China diversify, India’s competitive edge and potential as a “China+1” manufacturing hub make it an attractive investment destination.
A Unique Renewable Advantage – India’s diverse renewable energy mix offers a distinct advantage. Solar and wind power peaks differ, creating natural storage capacity. Combined with readily available hydro power, this forms a cost-effective and sustainable alternative to traditional batteries.
Source: The green shift report by Ministry of Petroleum & Natural Gas; Paris Agreement (SBI Mutual Fund)
SBI Energy Opportunities Fund is an open-ended equity scheme following the energy theme.
SIPs are good but even better when markets are HIGH
SBI Energy Opportunities Fund (NFO) Details
|06 Feb 2024
|20 Feb 2024
|29 Feb 2024 (Tentative)
|Lumpsum & SIP both
|Minimum Application Amount
|₹5000/- and any amount thereafter
|Nifty Energy TR Index
|Mr. Raj Gandhi & Mr. Pradeep Kesavan (overseas securities)
SBI Energy Opportunities Fund (NFO) Objectives
- Long term capital growth
- Investment in equity and equity related instruments of companies engaged in and/or expected to benefit from the growth in traditional & new energy sectors & allied business activities
SBI Energy Opportunities Fund (NFO) Investment strategy
Barbel portfolio approach with an optimal mix of traditional energy (Oil, Natural Gas, Coal, Nuclear) & new energy (Solar, Wind, Hydrogen, Bio) and power utility companies helps in reducing return volatility and offer better risk adjusted returns. The investment objective of the scheme is to provide investors with opportunities for long term capital appreciation by investing in equity and equity related instruments of companies engaging in activities such as exploration, production, distribution, transportation, and processing of traditional & new energy including but not limited to sectors such as oil & gas, utilities, and power.
Considering the high valuations at the current juncture, we recommend systematic investing via Systematic Investment Plan (SIP).
For Details Reports Please download the Presentation, SID, KIM from below…
Risk Discloser – MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. The Scheme being sectoral in nature carries higher risks versus diversified equity mutual funds on account of concentration and sector specific risks. Investors should consult their financial advisers, if in doubt about whether the product is suitable for them. The product labeling assigned during the NFO is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.