Sundaram Mutual has launched an open-ended large cap equity scheme, Sundaram Bluechip Fund. This New Fund Offer (NFO) will open for subscription on September 17 and will close on September 30. The scheme will reopen for ongoing subscription and redemption from October 14. According to Sebi, a large cap fund has to invest in the top 100 stocks on the basis of market capitalisation.
The fund house suggests the scheme for investors who seek capital appreciation over the medium to long term with lower volatility.
According to the fund house, Sundaram Bluechip Fund will invest in a diversified large cap portfolio of 45-50 growth and value stocks without any sector bias. Scheme’s stock selection will be based on a three-pronged framework of Quality – of management, of business model and of financials. Portfolio construction will be a blend of bottom-up stock picking with top-down selection based on sectoral and macro trends.
The fund can invest up to 20% of assets in midcaps.
Sundaram Bluechip Fund will be managed by Rahul Baijal – Senior Fund Manager – Equity and S. Krishnakumar, CIO – Equity. The scheme will be benchmarked against Nifty 100 TRI Index.
“Bluechips are quality companies that are usually large and exhibit the stability and agility to perform across market cycles. They are usually well-known, established industry leaders with strong processes and clear competitive advantages. The challenging economic circumstances caused by the Covid pandemic has heightened the importance of reducing the volatility in an equity investor’s portfolio without giving up the prospect of inflation beating returns. A Bluechip Large Cap offering is ideally suited to meet this requirement. Long term growth prospects for India look quite positive in the context of our Demographic Dividend and the business opportunities from an ageing China. Foreign Institutional Investors are expected to continue investing in our markets thus imparting stability to the Large Cap space,” says Sunil Subramaniam, Managing Director, Sundaram Mutual.
Investments can either be made through distributors or directly via Sundaram website through a very simple straight through process. The fund house has launched a paperless eNACH (electronic mandate) feature to enable investors to seamlessly set up SIPs online.
The NFO will also be available through some of Sundaram Mutual’s digital partners such as Paytm Money, Groww, INDWealth, 5Paisa and more.