Sundaram Mutual Fund launched a new fund offer for flexi cap fund on August 16. The asset management company projects it as an open-ended dynamic equity scheme investing across large cap, mid cap and small cap stocks.
The fund house says that there quite a few benefits of investing in flexi cap funds. Through flexi cap fund, investors can dynamically invest across market caps depending on attractiveness and valuations. The fund offer will stay open for investors until August 30, 2022.
The benchmark for the new fund will be Nifty 500 TRI (Tier I and II). The fund house states that the fund scheme’s objective is to generate capital appreciation by dynamically investing in a mix of equity and equity related instruments across market capitalisation i.e., large, mid and small cap stocks.
The fund managers who will manage the mutual fund scheme will be Sudhir Kedia and Ravi Gopalkrishnan for equity and Dwijendra Srivastava for fixed income.
|NFO opens:||Aug 16|
|NFO closes:||Aug 30|
|NFO price:||₹10 per unit|
|To reopen for subscription/redemption:||Sept 12|
|Benchmark:||Nifty 500 TRI|
|Exit Load:||Up to 1%|
|Minimum application:||₹100 and in multiples of Re 1|
The fund house says that it would follow a bottom-up approach to stock selection. It proposes to make judicious mix of large, mid and small caps with about 55-70 stocks in order to invest in opportunities across market capitalisations. The philosophy behind the stock selection is that the large caps are biased towards compounding stories and mid & small caps to provide alpha generation.
The fund will be diversified across industries and sections. There will be a potential to outperform across market cycles and the fund manager will get greater investment choices, leading to better diversification.
The exit load will be one percent if more than 25 percent of the units are redeemed within 365 days from the date of allotment.
However, there will be ‘nil’ exit load if up to 25 percent of the units are redeemed, withdrawn by way of SWP, or transferred by way of STP within 365 days from the date of allotment.