Sundaram Mutual Fund has launched the second fund in its new multi-cap series close on the heels of the first one. The new fund, Sundaram Multi-Cap Series II, will also have a tenure of five years. It opens for subscription today (5th July) and will close on 19th July. Sundaram Multi-Cap Series I closed for subscription on 20th June 2018.
As the name indicates, the fund will have the ability to invest in large cap, mid cap and small cap stocks. It can invest 65-100% of its assets in equity and 0-35% in debt. The fund will be benchmarked against the S&P BSE 500 Index. It will be managed by S Krishnakumar and Dwijendra Srivastava who manage various other close-ended funds of Sundaram. S Krishnakumar is the Chief Investment Officer (CIO) of equities at the fund house and Dwijendra Srivastava is the CIO of debt.
Sundaram Mutual Fund has previously launched several small-cap series of funds. You can view their returns in this article.
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: 5th July to 19th July
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