Sundaram Multi Cap Fund Series I opened for subscription on 8th June and will close on 22nd June. It is a close ended scheme investing in stocks across market capitalisation. Sundaram Mutual Fund has so far specialised in small cap close ended schemes and this one will be the first of its series as a multicap fund.
You can find the performance of its small cap close ended funds here.
An interesting trend in both the Sundaram small cap series analysed is that several schemes launched in 2014 and 2015 have outperformed their benchmarks while more recent launches have not. This may be because there has not been enough time to demonstrate outperformance or it may indeed indicate a performance drop.
Sundaram Multicap Fund Series I will have a tenure of 5 years. It will invest 65-100% of its assets in equities and 0-35% in fixed income and money market securities. It will be benchmarked to the S&P BSE 500 Index.
S Krishnakumar and Dwijendra Srivastava will be the fund managers. Krishnakumar is the Chief Investment Officer (CIO) for Equity at Sundaram Mutual Fund. Dwijendra Srivastava is the CIO for Debt. They are also the managers for various Sundaram close ended small-cap funds.
Close-ended funds free up a fund manager from redemption pressures and can allow him to focus on the investing process and outperform. On the other hand, they are arbitrarily timed. For instance, if the market, rallies for the next four years but drops in the fifth, you will have no choice but to accept the fall. You cannot easily exit a close-ended fund before the completion of its tenure.
NFO Period: 8th June to 20th June, 2018
Benchmark: S&P BSE 500
Options: Growth, Dividend Sweep, Dividend Payout. Dividend Sweep moves a dividend declared by this scheme into another open-ended Sundaram Fund of your choice.
Fund Managers: S Krishnakumar and Dwijendra Srivastava