Sundaram Equity Fund, a multi cap fund, which was open for subscription until August 30 has mopped up Rs.357 crore during its NFO.
Sunil Subramaniam, MD, Sundaram Mutual Fund said, “We have collected close to Rs.357 crore during the NFO period and received over 30,000 applications from investors.”
Subramaniam further said that most of the applications had come from retail investors. “Attractive performance and good track record of our funds have helped us collect healthy inflows during the NFO. We have seen participation from over 3600 IFAs.”
Another factor that found favour among distributors and investors is the multi cap strategy of the fund. Subramaniam said, “Since fund managers have a flexibility to shift between large cap, mid cap and small cap, it helps advisors and their clients to participate in equity growth story without worrying about market conditions. Currently, the multi cap funds have higher exposure to large cap stocks. Going forward, the fund managers can change such an exposure on his own depending on the market conditions. On the other hand, if an investor wants to shift his corpus from large cap to mid or small cap, he has to bear capital gains tax.”
The fund will follow a blend of top-down and bottom-up approaches. It will adopt a growth at reasonable price 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.
S Krishnakumar, CIO - Equity, Sundaram MF will manage this fund with S Bharath.
