Sundaram Mutual Fund opened subscriptions for NFO (New Fund Offer) for Sundaram Long Term Tax Advantage Fund – Series – IV – Direct Plan (G) on 27th March 2018.
Here is what you need to know about this fund.

Investment Objective of Sundaram Long Term Tax Advantage NFO

The objective of this mutual fund is to invest mainly in equity and equity-related instruments of companies, with an income tax benefit. This scheme aims to generate capital appreciation over a period of ten years as its investment objective. However, there can be no guarantee that the investment objective will be achieved primarily due to market risks.

Key Details of the Sundaram Long Term Tax Advantage Series 4

NFO Period: 27th March, 2018 – 27th June, 2018
Fund Managers: Mr. Dwijendra Srivastava and S Krishna Kumar
Benchmark: S & P BSE 500
Tenure: 3650 days (10 years)

Sundaram LT Tax Advantage Options

Invest in direct mutual funds

  • Enjoy 0% commission
  • SIP starting at ₹500

Under this scheme, there are two options, which are growth and dividend payout:

  1. Sundaram Long Term Tax Advantage Series 4- Growth
  2. Sundaram Long Term Tax Advantage Series 4 -Dividend

The portfolio remains the same for both the options. The NAV would be different and declared differently.

Invest in the Sundaram Long Term Tax Advantage Fund – Series – IV – Direct Plan (G)

If you want to invest in this NFO, the following steps must be followed.

  1. Log in to your Groww account. If you are a new user,  sign up first– it operates online and takes 2-3 working days.
  2. Decide the amount you would like to invest in Sundaram Long Term Tax Advantage Fund – Series – IV – Direct Plan.
  3. Email Groww support on [email protected] with a request or call/Whatsapp on 9108800604.

Investment Strategy of the Sundaram Long Term Tax Advantage Fund – Series – IV NFO

The scheme has been set up as an ELSS (Equity Linked Savings Scheme) thus has a lock-in period of three years to avail taxation benefits. It is a 10 year close ended fund which gives fund managers the flexibility to execute the investment strategy very effectively over the tenure of the scheme.

The managers after careful evaluation of the macroeconomics and business environments analyze the efficiency of the company operations and its management to scale up the business promoting growth for profitability. Both relative and comparative valuations may be done by the managers for studying the stocks.

The fund can invest a minimum of 80% and a maximum of 100%, in equity and other related instruments. Also, a maximum investment of 20% may be done in others (excluding debt instruments).

Steps are usually taken to ensure maximum return to the shareholders along with tax benefits and it is done in accordance with the guidelines of SEBI for investment particulars.

Benchmark of the Sundaram Long Term Tax Advantage Fund

The benchmark of this scheme is S&P BSE 500 Index.

It is consisted as the top 500 companies listed on BSE Limited and represents all the major industries in the Indian economy.

Other ELSS Options to Consider:

The main competitors of the scheme currently in the market are:

  • Invesco India Tax Plan
  • SBI Long Term Advantage Fund Series IV Direct
  • Aditya Birla Sun Life Tax Relief 96 Direct
  • BOI AXA Tax Advantage.
  • IDFC Tax Advantage (ELSS)

Fund Managers of the Sundaram Long Term Tax Advantage Fund – Series – IV – Direct Plan (G)

The fund managers of the scheme are Dwijendra Srivastava and S Krishna Kumar.

Mr. Dwijendra Srivastava is the Chief Investment Officer (CIO) of Debt at Sundaram Asset Management Company. Prior to this, he was Head – Fixed Income at Deutsche Asset Management (India) Limited.
He has an extensive investment experience and also holds a CFA degree. Mr Srivastava has obtained PGDM in Finance from Goa Institute of Management and B.Tech degree in textile technology from M.D University, India. Some of the funds co-managed by him are:

  • Sundaram Money Fund
  • Sundaram Flexible Fund Short-term Plan
  • Sundaram Monthly Income Plan
  • Sundaram Hybrid Fund Series M & N
  • Sundaram Bond Saver

S Krishna Kumar is the Chief Investment Officer of Equity and Vice President at Sundaram Asset Management Company Limited. Prior to this, he was the head at equity in Sundaram.

He worked at Lucas TVS for six years as a senior engineer and has obtained a PGDBA in Finance and Portfolio Management form Loyola Institute of Business Administration and a B.E.(hons) degree from the National Institute of Technology, Tiruchirappalli.
Some of the funds co-managed by him are:

  • Sundaram Tax Saver
  • Sundaram Select MidCap
  • Sundaram Value Fund – Series II
  • Sundaram Hybrid Fund Series M & N
  • Sundaram Value Fund – Series I

Risk Measures of the Sundaram Long Term Tax Advantage Fund – Series – IV – Direct Plan (G)

There are general risk factors associated with the scheme like exposure to market risk. Changes in government policies and impact of the economic conditions can also bear a substantial risk to the scheme.
At times, there can be a liquidity risk which may result for it to become incondusive,  as it is a close-ended fund.

However, diversification, complying with the rules and regulations and other risk mitigating measures would be actively employed by the fund managers.

Sundaram Asset Management Company Limited

The entire paid-up capital of Sundaram Asset Management is being held by Sundaram Finance Limited (SFL).

SFL is one of the largest non-banking financial companies in India with a national presence across multiple facets of the financial service industry including vehicle finance, home finance, mutual fund, general insurance and financial service distribution.

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, along 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 fixed-income funds, emphasis is laid the credit quality of the portfolio.

Mutual Fund Sundaram Mutual Fund
Setup Date Aug-24-1996
Incorporation Date Feb-26-1996
Sponsor Sundaram Finance Limited
Trustee Sundaram Trustee Company Ltd
Chairman Mr. Pratip Chaudhuri
CEO / MD Mr. Sunil Subramaniam / Mr. Harsha Viji
CIO Mr. Dwijendra Srivastava / Mr. S Krishnakumar
Compliance Officer Mr. P Sundararajan
Investor Service Officer Mr. S Ravi
Assets Managed Rs. 34306.30 crore (Mar-31-2018)


The scheme aims to provide a long-term appreciation of capital, along with tax benefits to its investors. Investors must invest in the fund if they have little knowledge of the markets and if they want to be free from evaluating each stock of the S&P BSE 500 Index.

Since this is a close-ended scheme that aims for capital appreciation, the investors should refrain from it if they want immediate money or liquidity.

Happy investing!

Disclaimer: the views expressed here are of the author and do not reflect those of Groww. 


Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.