To invest in energy and energy sector-related equities
CHENNAI: Sundaram BNP Paribas Mutual has launched Sundaram BNP Paribas Select Thematic Funds Energy Opportunities.
It is a close ended equity scheme that will convert automatically into an open-end scheme on completion of three years.
The fund is open for subscription from November 12 to December 11.
Addressing presspersons here on Wednesday, T. P. Raman, Managing Director, Sundaram BNP Paribas Mutual, said the fund will provide investors an opportunity to participate in energy sector growth stories.
The investment objective is to seek long term capital appreciation by investing primarily in equity and equity-related instruments of companies in the domestic market that predominantly focus on or benefit from, directly or indirectly, the opportunities and developments in the energy sector. According to S. Vaidyanathan, Head – Product and Risk Management, a supply-led story is emerging in the oil and gas sector with a robust demand in petro-products estimated at 9 per cent CAGR over the next five years.
At present the demand is subdued and this is set to change in the years to come.
There are opportunities for investment in coal and power sector related equity instruments, Mr. Vaidyanathan said.