Sundaram Mutual Fund Investment Company has launched a new close-ended equity scheme called as Sundaram Emerging Small Cap Series VII. The NFO will be open for subscription from September 10, 2018, to September 24, 2018.
The tenure of the Sundaram Emerging Small Cap Series VII scheme is 5 years from the date of allocation of the units. The NFO price for the scheme is 10 Rupees per unit.
The new Emerging Small Cap fund will be investing predominantly in small-cap stocks. The investment objective of the mutual fund scheme is to seek capital appreciation by investing mainly in equity or equity-related securities of Small Cap companies. However, the fund house does not guarantee or assure that the investment objective will be accomplished.
The Emerging Small Cap scheme of the Sundaram Mutual Fund Investment Company offers both Regular and Direct plans with Growth and Dividend Payout & Sweep options.
The minimum application amount for the scheme is 5000 Rupees for the initial investment and in multiples of 10 Rupees thereafter. There will be no entry load charge, and exit load charge is not applicable for the scheme.
The new close-ended equity scheme will invest 65 percent to 100 percent of its assets in equity and equity-related securities of small cap companies with a high-risk profile. The scheme will further invest up to 35 percent of its assets in other equity instruments with high-risk profile and up to 35 percent of assets in fixed income and money market instruments with low to medium risk profile.
The new Sundaram Mutual Fund scheme aims to collect a minimum subscription amount of 10 crore Rupees during the NFO period.
The performance of the Sundaram Emerging Small Cap Series VII scheme will be benchmarked against S&P BSE 250 Small Cap Index. S Krishnakumar and Dwijendra Srivastava are the fund managers of this new scheme, according to KJMC.
The Emerging Small Cap fund is suitable for investors who are looking out for long-term capital growth, and who are seeking investment mainly in equity or equity-related securities of Small Cap companies, according to information in the official website of the Sundaram Mutual Fund Investment Company.[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. ]