NFO Update: Sundaram Equity Fund

Sundaram Mutual Fund, with assets under management of about Rs. 33,572 crores as on July 31, 2019, has come out with its new fund offer, Sundaram Equity Fund. This scheme is open for subscription from August 16 2019 and the NFO will close on August 30, 2019. The scheme reopens for on-going subscription or redemption from September 16, 2019. The fund is categorised under the multi-cap fund.

Objective: The fund’s objective is to provide capital appreciation by investing predominantly in equity and equity-related securities across market capitalisation. The idea behind a multi-cap fund is to help investors have a smooth investing experience while creating wealth.

Strategy: The fund will invest in a diversified basket of equity stocks spanning the entire market capitalisation spectrum and across multiple sectors. The fund will invest in a portfolio of 45-50 stocks of companies, using a blend of top-down and bottom-up approaches. It will adopt a Growth at Reasonable Price (GARP) methodology and combine tenets of both growth and value investing. The fund will invest in secular growth opportunities in consumption and financial services, cyclical recovery themes (investment pick-up, rate sensitives, global cyclicals) and emerging business segments.

The scheme’s asset allocation mix will be designed based on inflection points - favourable macros (rising capacity utilisation and improved manufacturing indicators), the growth trajectory of corporate fundamentals, benign rates and a pick-up in credit and liquidity indicators, and a disparity in valuations within cap curves.

Fund Manager: The new scheme will be jointly managed by S. Krishnakumar, CIO-Equity and S. Bharath. The performance of the scheme will be benchmarked against S&P BSE 500 TRI Index.