Sundaram Services Fund, an equity oriented multicap fund, which has mopped up Rs.1019 crore during its NFO which closed on September 12.
Sunil Subramaniam, MD & CEO, Sundaram Mutual Fund said, “We have collected close to Rs.1019 crore during the NFO period and received over 69,000 applications from investors.”
He further said that most of the applications had come from retail investors. “While IFAs have brought 80% of applications, they contribute nearly 60% to the overall flows. Since IFAs cater to retail investors, majority of applications have come from retail investors across 100 cities. Over 6000 distributors participated in this NFO.”
Sharing how the fund has achieved this overwhelming response from investors, Subramaniam said, “I would attribute success of this NFO to four factors. Firstly, the theme of our scheme is unique and innovative. The multicap fund would invest across 15 sectors that could benefit the most because of India’s growth story. Also, our marketing campaign, which says that the scheme will have ‘controlled aggression’. The controlled portion refers to the scheme’s market capitalisation, agnostic nature and diversified investment universe. Aggression comes from the scheme being a thematic equity fund.”
“Another activity which has helped us reach out to large number of retail investors is our engagement with distributors. We connected with 7500 distributors through roadshows. Finally, our social media engagement and innovative marketing campaigns in print, digital and electronic media have helped us spread the word of our scheme. In fact, our YouTube channel recorded 57,000 views,” he added.
The scheme will invest in a multi-cap portfolio of aggressive small caps, midcaps and defensive large caps, in existing listed universe of 193 stocks identified with market cap of 40 lakh crore, and potential new listings in new age services. These new age businesses have garnered private equity investments of Rs 1.70 lakh crores over the last 5 years.
S. Krishna Kumar, CIO-Equity, Rahul Baijal and Rohit Seksaria will co-manage this fund.
