Sundaram Mutual Fund has launched Sundaram Services Fund, an open-ended equity scheme investing in Indian services sector. The fund house claims that this is the first fund in the Indian mutual fund industry to focus exclusively on service sector.
The NFO is currently open for subscription and will close on September 12, 2018. The scheme will invest in services sector of the Indian economy that essentially comprise 15 distinct sub-sectors across transportation and logistics, healthcare, retail, business process management, media and entertainment, hospitality and tourism, online and financial services, fitness, education, staffing, wealth management, aviation, architecture, legal and design services.
Commenting on the launch of Sundaram Services Fund, Sunil Subramaniam, Managing Director and CEO, Sundaram Mutual said, “Sundaram Services Fund is an opportunity to invest in a sector representing 54% of the Indian economy that also happens to be among the world's fastest growing, at 7.6%, in 2018. The gap between services share of the economy at 54% and of the market capitalisation at only 35% implies huge potential for the future.”
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.
