The New Fund Offer from SBI Mutual Fund named SBI Equity Opportunities Fund II opens for subscription today and is available until Dec 1, 2014. It is largely an equity oriented scheme, with very small maximum exposure to debt.
1) The Scheme is promoted by SBI Mutual Fund
2) Bulk of the money would be deployed in equities. A maximum of 100% and a minimum of 80%.
3) It's a three-year closed ended scheme. This means the scheme will be terminated after three years.
4) The Fund has a Direct Plan and a Regular Plan - both would offer growth and dividend options
5) Scheme opened from Nov 17 to Dec 1.
6) SBI Equity opportunities Fund II is benchmarked against the BSE Sensex.
Why We Like the SBI Equity Opportunities Fund II?
Three-year Close Ended Scheme
The Fund is a three-year close ended scheme. The good thing is in the next three years we have a stable government that is focussed on growth and development. This could see a sharp ongoing rise in equities, which could push indices higher. Since, a minimum of 80 per cent of it is being invested in equities, the fund is likely to ride on political stability and growth and development.
SBI Mutual Fund Schemes have generated strong returns in select schemes in the last one year. This does raise optimism over returns from the SBI Equity Opportunities Fund II.
Most investors by now know there is no guarantee of assured returns in equity dedicated mutual fund schemes. They are highly risky and are capable of eroding your capital. Should the stock markets fall, do not expect the scheme to do very much. Mutual Fund schemes by nature are risky investments. So, invest only if you have an appetite for risk.