Sundaram MF has launched a new open-ended equity mutual funds scheme called Sundaram Services Fund. The NFO has opened for subscription from August 29, 2018, and will close on September 12, 2018.
The investment objective of the new open-ended equity scheme of the Sundaram Mutual Fund is to pursue capital appreciation through investments in equity or equity-related securities of services sector companies.
Services sector includes sectors such as Fitness, Education, Healthcare, Staffing, Architecture, Wealth management, Media, Tourism and Hospitality, Retail, Legal, Design services, Transportation and Logistics, and Aviation.
However, there is no assurance or guarantee that the investment objective of the open-ended equity scheme investing in the services sector will be accomplished.
The minimum application amount for the Sundaram Services Fund is 5,000 Rupees for the first investment and in multiples of 10 Rupees thereafter.
The open-ended equity mutual funds scheme offers both Regular Plan and Direct Plan with Growth Option, Dividend Payout, Dividend Sweep, and Dividend Re-Investment Options. The Sundaram Services Fund is benchmarked against the S&P BSE 200.
The fund house has appointed Mr. S Krishnakumar, Mr. Rahul Baijal, Mr. Rohit Seksaria and Mr. Dwijendra Srivastava as the fund managers of the scheme.
Sundaram Services Fund is perfect for investors who are looking for long-term capital growth, by investing in equity or equity-related securities of companies involving in business mainly in the services sector, according to Advisorkhoj.
Sunil Subramaniam, MD of Sundaram MF, says that our country is amongst the fastest developing service sectors, managed by expanding purchasing power, improving urbanization trends, and fast progress in social mobility.
The new open-ended equity mutual funds scheme of the Sundaram AMC will follow a multi-cap strategy. The fund will invest in a portfolio of about 40 firms across large, mid and small-cap firms. The top 10 stocks will account for about 40 percent of the portfolio, according to The Economic Times.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]