Mumbai: SBI Mutual Fund has launched its first ever commodity-based equity fund Magnum Comma Fund.
The Comma Fund will invest in a portfolio of stocks of oil and gas, metals, chemicals and agriculture companies.
According to SBI MF, commodity stocks have outperformed the stock market benchmarks by impressive margins. These stocks enjoy a positive correlation to inflation and the new fund would be a hedge against inflation.
Global asset management company Societe Generale Asset Management (SGAM), which has a 37 per cent stake in SBI Mutual Fund, has extensive expertise in investing in commodity sectors. It is also running a World Commodity Fund.
According to SBI MF, Generally, commodity cycles are of long duration average being 17 years. After a long bearish phase, the domestic commodity sector is passing through a bull phase since 1999 and the fund expects the trend to continue.
The new fund opens for subscription on June 30 and would close on July 25.