About Sundaram Equity Fund

Sundaram Mutual Fund has launched a new fund named as the Sundaram Equity Fund. It is an open-ended scheme investing across large-cap, mid-cap, and small-cap stocks.

The aim of the fund is to generate capital appreciation through a diversified portfolio of equity and equity-related securities across various market capitalization.

Sundaram Equity Fund, the new issue is open for subscription from 16th August 2019 to 30th August 2019. The New Fund Offer (NFO) price for the scheme is Rs. 10 per unit. 

NFO Name Sundaram Equity Fund
NFO Launch Date 16th August 2019
Last Date for Application 30th August 2019
Minimum Investment Amount Rs. 100
Nature Open-ended
Fund Managers Mr. S Krishna Kumar
Mr. S Bharath
Mr. Dwijendra Srivastava
Risk Moderately high
Exit Load 1% for redemption within 12 months
Benchmark S&P BSE 500 TRI

 

Sundaram Equity Fund: Features

You should follow the below-mentioned steps if, you wish to invest in this NFO: 

  • Log in to your Groww account. If you are a new user, sign up first – it operates online and takes 2-3 working days.
  • Decide the amount you would want to invest in Sundaram Equity Fund.
  • Email Groww support to support@groww.in, specifying the amount and the name of the NFO.

Before investing in the NFO, you must remember that it is an open-ended and multi-cap equity-oriented mutual fund. Also, the minimum application amount is Rs. 100 and in multiples of Re. 1 thereafter. Further, the minimum additional purchase amount is Rs. 100 and in multiples of Re. 1 thereafter.

The fund seeks to collect Rs. 10 crores under the scheme during the NFO period. There is also an exit load of 1% on redemption of the units of the fund within 12 months from the date of allotment.

Also Read : 5 Best Small Cap Funds You Can Consider Investing in 2019

Investment Objective

The investment objective of this scheme is to generate capital appreciation by investing in a diversified portfolio of equity & equity related instruments across market capitalization.

Plans And Options Available

The scheme offers two plans, those are regular and direct. Under each plan there are two options:

  • Growth Option
  • Dividend Option
    Under the dividend option, there are further options of dividend reinvestment, dividend payout, and dividend sweep facility.

Sundaram Equity Fund opened for subscription on 16th August 2019 and will stay open till 30th August 2019.

Investment Style And Asset Allocation

Sundaram Equity Fund is an open-ended equity oriented fund that will invest in a diversified portfolio of equity and equity-related securities across large-cap, mid-cap and small-cap markets.

The scheme will invest 65% to 100% of its assets in the equity market and up to 35% of its assets in fixed income and money market instruments. Investment in equities and related securities always increases the risk of the portfolio varying from medium to high-risk profiles.

On the other hand investment in cash and cash equivalents has a low to medium risk profiles. Thus, in totality, the fund is considered to have a moderately high-risk profile. 

The scheme will follow a blend of both top-down and bottom-up approaches in selecting a portfolio of around 45-50 stocks. It will follow growth at a reasonable price (GRAP) methodology and combine tenets of both growth and value investing.

Also Read :Best Multi-Cap Funds 2019

Fund Managers

  • Mr. S Krishna Kumar is a Bachelor of Technology from the National Institute of Technology Trichy, and Masters of Business Administration from LIBA Chennai. He is the Chief Information Officer (CIO) – Equity & Executive Vice President at Sundaram Asset Management Company. 
    He is with Sundaram Asset Management Company from 2006 and has been successfully managing a few well-known schemes.
  • Mr. S Bharath, a Bachelors of Commerce (Honors), Masters of Business Administration and Cost Accountant is a fund manager at Sundaram Mutual Fund. He is successfully managing various equity schemes in Sundaram Asset Management Company with assets under management exceeding Rs. 3,000 crores.
    Previously, he was working with Navia Markets Limited and had a good experience in the equity market.
  • Mr. Dwijendra Srivastava is a Bachelor of Technology, Post Graduate Diploma in Management (Finance) and Chartered Financial Analyst (CFA). He was awarded as the best Debt Fund Manager in March 2015 by Outlook Money. He is managing various schemes with a total of Rs. 12,669 crores of assets under management.
    Previously, he was working with JM Financial Asset Management Company, Tata Asset Management Company Private Limited, Tower Capital and Securities, Indo Swiss Financial and Gontermann Pipers.

Who Should Invest In Sundaram Equity Fund?

This scheme is good for those investors who are willing to take some risk by investing in the equity market. As this is a multi-cap equity scheme so the risk is moderately high. Further, it carries an exit load of 1% on redemption of units within 12 months of allotment. So, it is suitable for investors who are seeking 

  • Long term capital growth.
  • Equity investment across various market capitalization.

Also Read: Best Mutual Fund SIP Plans

Sundaram Asset Management Company

Sundaram Asset Management Company (Company) has over 20 years of experience in fund management and is a fully owned subsidiary of one of India’s oldest and most respected Non-Banking Finance Companies (NBFCs) – Sundaram Finance Limited. The Company was jointly promoted by Sundaram Finance Ltd and Stewart Newton Holdings (Mauritius) Ltd in 1996.

Sundaram Asset Management offers a range of products in equity, fixed-income and liquid funds spaces that cater to a range of risk, return and liquidity preferences of investors.

A strong research team together with a robust process forms the backbone of its fund management team which has an enviable track record in identifying “tomorrow’s winners” in the mid and small-cap segment. For the fixed-income funds, the emphasis is on the credit quality of the portfolio.

Conclusion

Investors of this fund should understand that this is an open-ended equity oriented fund with S&P BSE 500 TRI as its benchmark. With a moderately high-risk profile, this fund gives an option to invest across various market capitalizations.

Further, no one can accurately predict the market movements, thus a little fluctuation in the return and risk profile is expected. So you should first match your return and risk profile with that of the scheme before investing in the same.

Also while investing you should know that it is a new fund offer and does not have a track record of returns. So, if you are not comfortable investing in an NFO then you can always look to invest in a mutual fund with a good track record.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww.