MUMBAI: The country's largest fund house SBI Mutual Fund, which manages an AUM of over Rs 9.14 trillion, is eyeing Rs 4,000-5,000 crore from the automotive opportunities fund during the primary subscription period that opens Friday.
The open-ended equity scheme tracking automotive and allied business activities theme, offers to generate long-term capital appreciation to unit-holders from a portfolio of equity and equity-related instruments of companies engaged in the automotive and allied businesses both in the domestic as well as the international markets, Shamsher Singh, the managing director and chief executive said.
Though the fund house did not publicly state the AUM target, an official told The New Indian Express that they have set an internal target of collecting Rs 4,000 to Rs 5,000 crore during the 15-day new fund offer period.
Pointing out that the domestic auto market being the third largest in the world after China and the US, Singh said this itself presents an attractive opportunity for passive investors as domestic demand and auto exports have been drivers of growth. Electric mobility and rise of logistics and passenger transportation also provide inflection points for the industry.
DP Singh, the deputy MD and joint CEO, said this fund is for those investors who are keen to add a thematic offering to the satellite portion of their portfolios.
The domestic automotive industry is running in top gear now. In addition, manufacturing of auto parts and ancillaries contribute to almost 30 percent of the manufacturing ecosystem providing wealth creation opportunities for investors in the long-term, he added.