Sundaram Mutual Fund has announced the launch of its new open-ended equity scheme, Sundaram Flexi Cap Fund. This new fund offer (NFO), which opened for subscription on August 16, 2022, will close on August 30, 2022.
According to Sundaram Mutual Fund, the fund will invest across sectors in large-, mid- and small-cap stocks, without any restrictions on allocation across cap curves.
Sunil Subramaniam, managing director, Sundaram Mutual, said: “Flexi-cap funds have the potential to outperform over market cycles. They allow investors to stay invested in the best cap curves, sectors and stocks across all market scenarios. Investors tend to chase the markets and may or may not make the right call for their portfolio. By investing in a flexi-cap, they leave the decision to the experts, allow for greater diversification, and can relax while the fund manager optimises opportunities for them.”
The press release further said that the fund will invest in a mix of equity, debt, InVITs/REITs, and overseas securities, including exchange-traded funds (ETFs).
The allocation will be minimum of 65 per cent and maximum 100 per cent per cent in equity and equity-related instruments of large-, small-, and mid-cap companies. There is no minimum allocation for debt and money market instruments, units issued by REITs/InVITs, and overseas securities. The maximum allocation for these three categories will be 35, 10 and 30 per cent, respectively.
Ravi Gopalakrishnan, chief investment officer – equity, said: “We will invest in a judicious mix of 55-70 large-, mid-, and small-cap stocks, with a top-down approach to sector selection, and bottom-up to stock picking. Large-caps will be biased towards compounding stories, and mid- and small-caps towards companies that will provide alpha generation.”
The minimum application amount for both regular and direct plan will be Rs 100, and in multiples of Re. 1 thereafter for each application. For systematic investment plans (SIPs), the figures will be Rs 100 (monthly), Rs 750 (quarterly), and Rs 1,000 (weekly).
There is no entry load, while the exit load will be nil for up to 25 per cent of the units if they are redeemed, withdrawn by way of systematic withdrawal plan (SWP), or transferred by way of systematic transfer plan (STP) before 365 days of allotment. Where the said transfer, withdrawal or redemption involves more than 25 per cent of the units, the exit load will be 1 per cent.
There will be no exit load after 365 days of the allotment.
The benchmark of the fund has been pegged to Nifty 500 TRI.
According to Sundaram Mutual Fund, the flexi-cap fund is suitable for investors who are seeking capital appreciation over the long term, and want to invest in a dynamic mix of equity and equity-related instruments across large-, mid-, and small-cap stocks.