Sundaram MF has launched the Sundaram Services Fund through a new fund offer (NFO). The NFO period of the scheme started on 29th August and will end on 12th September, 2018. Being a thematic fund, this fund will mainly invest in equity and equity-derivatives of companies operating in the services sector. This open-ended scheme will allow investors to invest in and redeem their units on all business days.
Due to its thematic nature, Sundaram Services Fund will invest between 80-100% of its assets in equity and equity derivatives of companies operating in the services sector. Key sectors that this scheme will invest in are healthcare, fitness, tourism, hospitality, transportation and logistics, education, wealth management, etc. Additionally no more than 20% of the scheme’s assets will be invested in various money market and fixed return investments.
The Sundaram Services fund will use the S&P BSE 200 Total Return Index as its benchmark. The index features the top 200 listed companies on the BSE based on market cap. Returns provided by the BSE 200 Index over the 1 year, 3 year and 5 year periods are 17.69%, 14.20% and 18.60% respectively(as of 31st July 2018). Key sectors which have maximum weight on this index include financial (33%), IT (11%), FMCG (10%), oil and gas (10%) as well as transport equipment (9%). The selection of a generic benchmark rather than a sector specific benchmark is a matter of concern.
The new thematic scheme will be co-managed by a team comprising Krishnakumar S., Rahul Baijal, Rohit Seksaria and Dwijendra Srivastava. Among them, they currently manage (either independently or as part of a team) various key funds including the Sundaram Midcap Fund, Sundaram Small Cap Fund, Sundaram Debt Oriented Hybrid Fund, Sundaram Ultra Short-Term Fund and Sundaram Money Fund. Among these, the Sundaram Money Fund and Sundaram Mid Cap Fund are the AMC’s most popular schemes with AUM of Rs. 7612 crore and Rs. 6138 crore as of 31st July 2018.
Key Features of the Sundaram Services Fund NFO:
| Minimum Investment | Rs. 5000 |
| Benchmark | S&P BSE 200 Total Return Index |
| Fund Manager | Krishnakumar S., Rahul Baijal, Rohit Seksaria and Dwijendra Srivastava. |
| NFO Period | 29th August to 12th September |
| Options Available | Growth, Dividend (Payout/Re-invest/Sweep) |
Other Funds by Sundaram Asset Management
| Scheme Name | 3Y Returns (%) | AUM (Rs. Cr.) | Category |
| Sundaram Select Focus Fund | 15.56 | 750.15 | Large Cap Fund |
| Sundaram Large and Mid Cap Fund | 14.08 | 371.94 | Large & Mid Cap Fund |
| Sundaram Financial Services Opportunities Fund | 13.72 | 148.6 | Sectoral/Thematic Fund |
| Sundaram Equity Hybrid Fund | 12.6 | 1008.95 | Aggressive Hybrid Fund |
| Sundaram Rural and Consumption Fund | 9.13 | 2605.76 | Sectoral/Thematic Fund |
| Sundaram Global Brand Fund | 8.58 | 24.44 | Sectoral/Thematic Fund |
| Sundaram Corporate Bond Fund | 8.28 | 361.54 | Corporate Bond Fund |
| Sundaram Medium Term Bond Fund | 7.89 | 114.3 | Medium Duration Fund |
| Sundaram Banking & PSU Debt Fund | 7.72 | 1193.57 | Banking and PSU Fund |
| Sundaram Diversified Equity Fund | 6.96 | 2762.68 | ELSS |
| Sundaram Money Direct Growth | 6.9 | 5425.28 | Liquid Fund |
| Sundaram Infrastructure Advantage Fund | 5.9 | 773.09 | Sectoral/Thematic Fund |
| Sundaram Mid Cap Fund | 5.68 | 6550.61 | Mid Cap Fund |
| Sundaram Debt Oriented Hybrid Fund | 4.83 | 137.78 | Conservative Hybrid Fund |
| Sundaram Smart NIFTY 100 Equal Weight Fund | 4.6 | 23.04 | Large Cap Fund |
| Sundaram Low Duration Fund | 4.31 | 1698.48 | Low Duration Fund |
| Sundaram Short Term Debt Fund | 3.42 | 1181.76 | Short Duration Fund |
| Sundaram Short Term Credit Risk Fund | 3.25 | 496.47 | Credit Risk Fund |
{Data as on Feb 20, 2020; Source: Value Research}